Your Voice in the Tax Cut Debate
Congress, in its final session of 2010, has several key votes to make on behalf of working families - including extending expiring refundable tax credits. Without Congressional action, the Recovery Act tax credit expansions expire at the end of the year.
This week, NCTC, as a member of Americans for Responsible Taxes, signed on to a letter to Congress calling on Members to make permanent the tax cuts for middle and lower-income families, to let the cuts for upper-income taxpayers expire as scheduled, and to extend unemployment benefits through the end of next year for the millions of Americans who still cannot find work.
Continuing the 2009 improvements to the Child Tax Credit and Earned Income Tax Credit would create jobs and bolster the economy. These tax credits are effective at promoting work and supporting families. An extension of the upper-income tax cuts would cost about $40 billion for 2011; according to the Congressional Budget Offices analysis, spending these funds to instead extend unemployment insurance benefits or directly create jobs would be far more effective.
The letter also states that even a temporary extension of the high-income tax cuts would be a mistake. There are better ways to spur job creation, and any “temporary” extension will likely be made permanent in the new Congress. Over the next decade, extending all of the 2001 and 2003 tax cuts for those making over $250,000 would increase the deficit by $700 billion.
Everyone, including upper-income taxpayers, will benefit if the middle class tax cuts are renewed, because of the way our marginal tax rate system works. It would be irresponsible to give the top two percent of taxpayers an additional cut. Given the ongoing hardship for working families and those who have lost their jobs during the recession, as well as increasing concern about our fiscal trajectory, it makes no sense to adopt a policy that will put money in the pockets of those who need it the least while greatly expanding the deficit. The public understands this – poll after poll has shown that a solid majority favors allowing the tax breaks for the wealthiest to expire.
Make sure you're voice is heard. Take action now!
