Green Party of New York State
http://www.gpnys.org/
Hawkins for Senate
Media Release
For More Information:
Howie Hawkins 315-425-1019, hhawkins@igc.org
May 11, 2006
SYRACUSE -- Howie Hawkins, who is seeking the Green Party nomination for US
Senate, called on Congress to reject the proposed $70 billion tax cut that
will primarily benefit wealthy Americans. The cuts have already been approved
by the House and a Senate vote is expected shortly.
“The agreement will provide an average annual tax cut of just $20 to
Americans in the middle of the income spectrum, while showering tax cuts that
average $42,000 on people who make more than $1 million a year. The Greens are
opposed to the Robin-hood-in-reverse policies of our two major parties,” stated
Hawkins.
The tax cuts for the rich come on the heels of the February vote by Congress
to cut $39 billion in student loans, Medicaid, education, and child support.
Congress also plans to enact a second round of tax cuts in the near future;
for public relations purpose, they decided to cap the first round at $70
billion.
“The way to stimulate our economy is not yet more tax cuts for the rich but
slashing our military spending, starting with bringing our troops home from
Iraq. A peace dividend of hundreds of billions of dollars should be used to
create jobs here at home through investment in renewable energy and conservation, affordable housing, education and environmental
protection,” stated Hawkins. “We need to ensure that the rich pay their fair share of taxes by closing
all these special interest loopholes and raising the tax rate on the highest
incomes.”
Hawkins added that “taxes on wages should be lower – not higher – than
taxes on income from wealth. Congress has gone in the opposite direction.”
The tax rates for dividends and capital gains are now 5% for taxpayers in
the 10% and 15% tax brackets, and 15% for those in higher brackets. Congress has already approved reducing those rates to zero in 2008 for taxpayers in the
10% and 15% brackets. While those rates are scheduled to lapse in 2009, with
dividends and capital gains scheduled to be taxed at the same rate as wages,
the new bill would extend the 2008 rates through 2010. This represents a
giveaway to the rich of $21 billion over five years and $51 billion over 10,
ultimately shifting more of the tax burden onto working families.
The measure's second-most costly provision — $34 billion in 2006 and 2007
alone — would provide relief to the increasing millions of taxpayers who would
otherwise be subject to the alternative minimum tax. The alternate minimum
tax is designed to ensure that all taxpayers pay at least some taxes; many
wealthy taxpayers are able to use Congress’ numerous tax loopholes to otherwise
escape all tax liability.
Hawkins charged that the tax bill would increase federal budget deficits in
violation of existing Congressional rules. Hawkins cited a report by the
Center for Budget and Policy Priorities that shows that the agreement depends on
budget gimmicks to create the appearance that it complies with a key rule that bars reconciliation bills from increasing long-term
deficits. The agreement moves corporate tax payments between years to mask revenue losses that occur
after 2010. Most troubling, the bill includes a substantial tax cut for
affluent households disguised as an offset. This provision, which would
allow high-income individuals to convert regular IRAs to Roth IRAs, would raise revenue
initially but lose larger amounts of revenue in later years.
