FOR IMMEDIATE RELEASE
Contact: Sue Dinsdale, 515.480.3240, SDinsdale@IowaCAN.org
Adam Mason, 515.314.2655, email@example.com
Report Shows Impact to Iowans of Ending Bush Tax Cuts for Richest 2% of Americans
Wealthy Few Would Reap Huge Tax Breaks at Expense of Other Iowa Residents
Des Moines, IA – August 1, 2012. If the U.S. House of Representatives passes the Republican plan today to extend the Bush-era tax cuts for one year for households making over $250,000, the wealthiest 2 percent of Iowans in that income group could get a disproportionate 31 percent of the total tax breaks in their state. They’re average tax cut would be about $29,000.
In contrast, if Congress passed President Obama’s plan to extend the Bush tax cuts on the first $250,000 in household income, the average tax cut for Iowans who make more than that amount would be about $13,000, less than half of what they would get under the GOP plan. And the 22 percent of Iowans with income up to $25,000 would get larger average tax cuts under the Obama plan than under the Republican plan.
Those are among the key findings of a new report released today by Iowa Citizen Action Network (ICAN) and Iowa Citizens for Community Improvement (Iowa CCI). “Time to Pay Their Fair Share: Iowa Can’t Afford to Extend the Bush-era Tax Cuts for the Wealthy Few.” The report is authored by Americans for Tax Fairness, Citizens for Tax Justice and the National Women’s Law Center.
The report is timely because this week, likely today even, the U.S. House of Representatives will vote on the Republican plan to extend all the Bush tax cuts, including for the richest 2 percent of U.S. households, while ending improvements in tax credits for low-end and moderate-income families. The Democrats will offer an alternative plan similar to President Obama’s, which the U.S. Senate passed last week by a 51 to 48 vote.
“Giving lavish tax breaks for those who need them the least is exactly the kind of special-interest giveaways Washington needs to stop,” said Sue Dinsdale, Executive Director of ICAN, a member of the Americans for Tax Fairness campaign. “We urge the House to end the Bush-era tax cuts to the richest 2 percent.”
Major findings of the report include:
The additional tax cuts for the wealthiest 2 percent of U.S. households under the Republican plan will cost approximately $68 billion next year alone. That’s equal to what the federal government spends to repair highways, improve education and provide school breakfasts for low-income children, ensure clean drinking water, and deliver meals at home to frail seniors. The report breaks down what Iowa’s share of these funds means for its residents:
“We can’t afford to keep giving tax cuts to the richest,” said Adam Mason, State Policy Organizing Director at Iowa CCI. “We can’t balance the budget on the backs of children, seniors, and families struggling to make ends meet, and we can’t keep borrowing from China. Those who have done well in America should do well by America and pay their fair share.”