MARCH 4, 2003
Taxes for All Coalition
Peter Montgomery of People For the American Way,
Margot Friedman of National Women's Law Center, 202-588-5180
Tiffany Ricci of AFSCME, 202-429-5047
Michelle Woolley of Leadership Conference on Civil Rights,
Fair Taxes for All Coalition: Treasury Secretary Snow's
Record Undercuts Pitch for Tax Cut
- March 3 - Following is a statement by the leaders of the Fair
Taxes For All Coalition:
John Snow's attempts to promote the latest Bush tax cut plan before
the House Ways and Means Committee today are undermined by the
record of the company he used to lead, said leaders of the Fair
Taxes For All Coalition. Moreover, the Bush Administration is
being irresponsible by pushing for the tax cut when it has not
told the American people how much a war with Iraq may cost.
argument that Congress must eliminate the income tax on dividends
because it represents "double taxation" doesn't add up. Here's
-- CSX, the
company that used to be headed by Secretary Snow made $974 million
in profits over the last 4 years. During that period the company
paid no corporate taxes at all. Instead it received a $164 million
rebate. There is no way to double tax that.
-- CSX is just
one example. The fact is that profits aren't taxed heavily at
the corporate level. Last year only one-half of corporate profits
were subject to the corporate income tax, and only a small portion
of those are paid out as dividends. -- Corporate income tax revenue
as a share of all federal tax revenues has been falling for decades
-- from almost 14 percent in 1972 to less than 9 percent in 2001.
By 2000, U.S. corporations paid some of the lowest corporate taxes
in the developed world. Corporate taxes paid on profits generated
in the U.S. are now 22nd lowest out of 29 industrial countries
in the Organization for Economic Cooperation and Development (OECD).
-- The whole concept of double taxation is specious. We pay taxes
on income, and then we pay sales tax on purchases when we use
that income. Is that double taxation? Is it double taxation when
we pay our property taxes, utility taxes, gas taxes or any other
tax with the same income on which we have already paid income
taxes? We do get a deduction for some of these taxes on our income
taxes, but Bush is not proposing a deduction -- he's proposing
to eliminate taxation on dividend income altogether.
And the Bush
tax cuts won't do anything to stimulate the economy. Over 450
economists -- including 10 Nobel Prize winners -- have signed
a letter saying that the Bush tax cut plan will not provide a
short-term economic stimulus. In addition, it will worsen the
long-term budget outlook, reducing the government's ability to
finance Social Security, Medicare, investments in schools, health,
infrastructure and basic research.
want to take billions from the Social Security Trust Fund and
other critical priorities and use them for tax breaks for millionaires.
Yet, tax filers with an adjusted gross income of over $1,000,000
would get an average tax cut of $90,000 from the Bush "growth"
package -- while the middle 20 percent of the population would
get a tax cut of only $256. (Urban-Brookings Tax Policy Center).
Thirty-one percent of the nation's taxpayers would get no benefit
from the Bush tax cuts; almost half (48 percent) would receive
less than $100.
The time has
come to say enough is enough. Congress must stand up and stop
this irresponsible Bush tax cut. For more information, please
visit the Fair Taxes for All Coalition's Web site at http://www.FairTaxesForAll.org.
The Fair Taxes
for All Coalition is a massive coalition of coalitions co-chaired
by People For the American Way, AFSCME, the National Women's Law
Center, the Leadership Conference on Civil Rights, US Action,
and the Campaign for America's Future.
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