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Legislation & Politics | ||
Letter to members of the House Ways and Means Committee opposing the proposed Budget Reconciliation tax package (H.R. 4297)November 14, 2005 Members of the House Ways and Means Committee Dear Representative: On behalf of the 1.4 million members of the American Federation of State, County and Municipal Employees (AFSCME), I strongly urge you to oppose Chairman Thomas' proposed Budget Reconciliation tax package (H.R. 4297). AFSCME opposes this harmful package of tax breaks for a number of reasons. The bill will divert needed funds that states and localities would otherwise use to deliver vital public services to the nation's children, seniors, and needy families. Furthermore, at this moment when the federal government needs to rebuild the Gulf Coast, pay for the long-term costs of Iraqi military operations, and invest in 21st century domestic infrastructure and priorities like education and job training, it is untimely to consider — let alone enact — these costly tax breaks. Rather than increase the deficit by giving away additional, costly tax benefits to a small number of very wealthy Americans, the Committee should reduce the deficit by ending corporate tax abuses and repealing earlier tax breaks for millionaires. Just last week, the House tried to consider a budget bill cutting $53.9 billion from mandatory spending on vital services. It is therefore ironic and troubling that the House would move so quickly to advocate this tax break package, which significantly increases future deficits. Chairman Thomas' Committee tax package contains numerous tax breaks that are overly expensive, untimely, skewed to benefit the wealthiest Americans, unnecessary, or all of the above. For example, the proposed two year extension on the reduced 15 percent tax rate for dividend and capital gains income costs more than $10 billion, largely benefits the rich, and doesn't even take effect until 2009. According to the Internal Revenue Service's 2003 data on the distribution of the benefits from these two tax breaks:
This distribution simply does not reflect America's priorities. Although AFSCME acknowledges that the proposal provides a few helpful measures, including middle-class tuition deductions and the low-income savers credits, these are too few. This package is also disappointing because it lacks strong revenue raisers and measures to reduce corporate tax avoidance. We urge you to vote to oppose this tax package.
Charles M. Loveless |
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