As tax day rolls around, hardworking families are meeting their obligations to our nation by paying their taxes. This year, Americans will pay an estimated $2.62 trillion in federal taxes and $1.42 trillion in state-local taxes. But at the same time, the reality is many of the wealthiest Americans just aren't doing their part. Since the Bush tax cuts were signed into law, the nation's top earners continue to get wealthier while middle-class and low-income families are paying more than their fair share. It's time to put an end to the free passes for billionaires and millionaires and make our tax system more fair and equitable for all Americans. That doesn't just mean equality -- though that's vital -- it means making our country great again through valuable investments in our nation's future.
The inequity of our current tax system is best illustrated when you look at the tax rates of Warren Buffett and his secretary: as Buffett has pointed out, she pays 35.8 percent of income in taxes, while he pays only 17.4 percent. He's been vociferous about the blatant inequality of this system. But this isn't the only example. The IRS says that in 2009 there were 22,000 households who earned more than $1 million but paid less than 15 percent of their income in taxes. I personally don't know anyone who thinks this is fair. On Monday, the "Buffett rule" was introduced in Congress to increase the tax rates on the super wealthy. Getting something like this through Washington, D.C., during an election year will be challenging to put things mildly.
So what can be done? The answer is simple. Let the Bush tax cuts for millionaires and billionaires expire and put the savings towards rebuilding our great nation. Studies show that if the Bush tax cuts for the wealthiest Americans were to end, it would free up $1.5 trillion. This money could be invested in our nation's future (think infrastructure and essential investments: teachers, firefighters, small business leaders and those who lead youth workforce development) and, of course, get Americans struggling to make ends meet back to work.
It's clear that our nation's middle and lower class families are paying more than their fair share and their outrage is evident. Those feelings of frustration turned into action last fall with the Occupy movement. Thousands of Americans came together across the country because they want a government they can be proud of, one that values fairness and equity and doesn't put the haves over the have nots.
While our nation's unemployment rates remain just above 8 percent, communities of color that were hit the hardest during the recession continue to struggle. According to recent reports, unemployment rates among African Americans remain at a staggering 14 percent. That's unacceptable. Period. Investing in the clean energy economy will generate new economic opportunity, and will create the jobs needed to end our nation's unemployment epidemic -- for everyone. In fact, investments in clean energy have the potential to create hundreds of thousands if not millions of jobs in the green economy in energy efficiency, water infrastructure, as well as renewable energy and transportation sectors.
In fact, just last month the Bureau of Labor reported that in 2010 the green economy accounted for 2.4 percent of total employment. That's 3.1 million Americans who are working in green-collar jobs to build our nation's economy. These are the construction workers who install solar panels and weatherize homes and office buildings, entrepreneurs that own small recycling companies, manufacturers creating energy efficient products, and innovators developing the next alternative energy breakthroughs.
But that's only the start. Simply put, green jobs are the jobs of the 21st century. Investing in green construction, technology, manufacturing, and alternative energy will boost our economy, help us get out of debt, create jobs and position our nation to continue to lead in the 21st century global economy. So instead of giving the wealthiest Americans a free ride, why shouldn't we ask them to pay their fair share? That's the only way we are going to bring fairness to our tax system and make our nation stronger, healthier and more competitive.
America deserves better. Our economy deserves better. And our future deserves the investment it needs. We need to come together to call on Congress to put an end to the tax breaks and loopholes for the top 1 percent. Because creating jobs for millions of people is how our nation will be an economic powerhouse once again.
Take Action: Let's end the Bush tax breaks for rich, and create jobs for a stronger America!
Follow Phaedra Ellis-Lamkins on Twitter: www.twitter.com/phaedrael
Jared Bernstein: What's Fair? Five (or Six) Principles of Tax Fairness
Please learn the difference of taxes between ordinary income and capital gains on dividends. Buffett's income is mostly based on dividends, which have already been taxed by corporate rates prior to him having to pay his taxes on them as well. Why people keep pushing this line is beyond me.
Americans are tired of make-work programs and public union payola. Real autonomous private sector growth is predicated on savings and investment, not borrowing and spending. Tax cuts do more to hasten that savings and investing and ultimately create jobs
I'm assuming you mean those new jobs created in China, Vietnam, India, etc...??
Clearly the last decade of the lowest tax rates in years hasn't produced any jobs or prosperity for anyone but the already wealthy. This is magically going to change by cutting taxes for the rich even more, per cantor, romeny.....? I mean really if they pay 0 in taxes are jobs going to return to America?
Since the Republicans have said the Rich are just not going to pay for any of these things, I guess the rest of us, who cannot really afford, it are going to have to increase our taxes to pay for these things for our children's future.
WITHOUT THESE INVESTMENTS OUR CHILDREN AND OUR GRANDCHILDREN'S FUTURE WILL BE BLEAK. If the wealthy won't pay we will have to pay ourselves; or, encourage our children to emigrate to another nation that takes care of it's citizens.
It is foolish to invest in the U.S. We have poorly educated citizens, poor roads, inadequate internet connectivity, antiquated energy production and distirubtion systems, darn right the smart money is all going to the BRIC nations.
To reverse that we need to compete with world class education, infrastructure and tax policies.
The current six rate brackets of 10%, 15%, 25%, 28%, 33% and 35% will be replaced by five new brackets with the higher rates of 15%, 28%, 31%, 36% and 39.6%.
Right now, the maximum federal rate on long-term capital gains and dividends is only 15%. Starting next year, the maximum rate on long-term gains will increase to 20%.
Right now, the standard deduction for married joint-filing couples is double the amount for singles. For this, we can thank the Bush tax cuts, which included several provisions to ease the so-called marriage penalty. The penalty can force a married couple to pay more in taxes than when they were single. Starting next year, the joint-filer standard deduction will fall back to about 167%
The Bottom Line
The Bush tax cuts don't just offer tax relief to the wealthiest Americans. They offer it to just about anyone who pays federal income taxes. Their scheduled demise next year will raise the tax bill of nearly every taxpayer, unless Congress makes changes and the president jumps on board.
How about being fair...
loks to me the bottom 50% need to catch up!!
The Top 1% pays 36.73 % of the taxes
The Top 5% pays 58.6%
The Top 105 pays 70.47 %
The Top 50% pays 97.75%
The bottom 50% pay 2.7%
the 1.5 Trillion savings is not about increasing taxes on the Million dollar earners, its about increasing Taxes on everyone, its about getting rid of business deductions, credits, limiting personal deduction on income taxes and a lot more. This was an idea floated by Obama a few months ago and even the Dems thought it was absurd.
80% of the drop in in Federal Income tax revenue from the Bush cuts went to those earning under 80K around 300 Billion a year. Doubled the Personal Deduction, Earned Income Credit, Child Credit etc...those break mean nothing to a seven figure earner , but alot to those who need a break.
As for the millions working in Green Jobs, she including ALL of the workers at GM, people who work in Trash Collection, folks in manufacturing who used recycled steel, aluminum (which has been going on for decades), people who work at Nukes (Nukes are ranked as Green Jobs)...Government employees who work is Government Parks are ranked as Green jobs...and so on...the number is silly.
http://www.bls.gov/news.release/pdf/ggqcew.pdf
In reality, the middle-class and lower-classes are paying a reduced share while the wealthier Americans (top 5%ers) are paying a greater share.
See Table 2:
http://www.cbo.gov/sites/default/files/cbofiles/ftpdocs/98xx/doc9884/12-23-effectivetaxrates_letter.pdf
WHen GW first took office one of his first acts was allowing more arsenic in drinking water. this lowered coal prices. it made strip mining cheaper. Arsenic was just found to be waaay more toxic than originally thought. http://www.sciencedaily.com/releases/2012/04/120404101951.htm
so for some people coal is deadly expensive. But at the same time the fake profit is going into some ones pocket. and the real costs are being passed along to random people living in teh area and ultimately being covered by tax payers through romney/obama care. cheap is expensive.
re the rationality of the market. free market economics depends on the premise of rationality to cover its moral implications. humans have rational capability but typically use iffy heuristics instead. so price points are iffy. if they arent moral, what is their societal value?
http://waterindustry.org/Water-Facts/arsenic-12.htm
www.cato.org/pubs/regulation/regv24n3/specialreport.pdf
"for some people coal is deadly expensive". agreed ,but for some people higher power bills are too.
your response, makes my point.
funny how chlorine maybe the most deadly chemical, is ok in your water. chlorine kills any organism but humans, crazy weird.
flouride a poison too
I agree arsenic is horrible and I have spent the last 27 years making water safer, so don't blast me. I don't know about the blood money and murder thing, or even what you are getting at. I know many people a year die because the can't afford cooling or heat and you support higher energy cost.
Raise it, lower it ... doesn't matter.
They care about the loopholes, deductions and other get-outs in the very complex tax code.
It's hyper-complex for a reason.
And what of our taxes? We are told that our taxes will go to corporations, the job creators, to create jobs of the future. Does that make any sense to anyone? Corporations will gladly take your money and then still offshore the technology and jobs. This is a suckers game.
The real solution which nobody in DC or on Wall Street will talk about is protectionism. Its what made America great and its the only policy that creates jobs at home. Since the US started free trade our economy has stagnated. Its time to be honest that free trade is the central problem. Its time to start talking about it.