I am writing to invite you to join me in signing a petition to stop George W. Bush "trickle-down" economics now. I need your help.
Congress is faced with an important decision regarding fiscal policy that will have far-reaching impacts on our national debt and economic health.
At the end of this year, tax cuts will expire for all income brackets. As we struggle to recover from the Great Recession, nearly everyone agrees that the tax cuts should be extended for the middle class and those with an income up to $250,000.
Congress must reinstate the middle-class tax cuts we need -- and let the failed tax cuts for the wealthiest 2% lapse.
Studies show that in times of recession, reduced taxes for middle-class Americans can help boost the economy, because much of that money is likely to be immediately pumped back into the system.
There is not, however, agreement on the effects of extending the Bush tax cuts for the wealthiest 2% of Americans. According to the "trickle-down" economic theory, reducing taxes on high incomes would eventually help low income earners by putting more of them to work. However, an analysis done by John McCain's economic advisor and Moody's Analytics shows that the Bush legacy tax cuts for those with a very high income did nothing to stimulate the economy.
Moreover, continuation of the tax cuts to incomes over $250,000 adds considerably to our national debt; $700 billion over the next 10 years. For these reasons, I oppose the extension of the "trickle-down" tax cuts for the wealthiest 2% of Americans.
What has worked during times of recession, and what I do support while our economy is recovering, are tax cuts for the middle class -- and we need them now.
We should not let Republicans hold middle-class tax cuts hostage so they can keep the FAILED tax cuts for the wealthiest 2%.
If we don't act now, we could lose the tax cuts we need or get stuck paying the bill for tax cuts benefiting only the wealthy.
We know many people of wealth have been tremendous contributors to both our economy and our communities, and have earned our respect. But our current deficit and the stunning loss of economic power amongst the middle class simply do not afford us the luxury of replicating the failed "trickle-down" policies of George Bush. Also, it should be noted that by extending the middle-class tax cuts, those people who earned over $250,000 will also be getting tax cut extensions for all their income earned under $250,000.
Right now, in this economy, we can't afford to put politics before facts. And the facts are clear: middle-class tax cuts will help our economy -- and strengthening our economy will pay off for everyone in the long run.
That is why I'm pushing for a vote on middle-class tax relief. Please sign on to our petition calling for passage of the middle-class tax cuts we need and letting the failed tax cuts for the wealthy lapse.
Reinstating the Bush tax levels for income over $250,000 is bad policy. It is time we start saying so.
Thank you for your support and for helping keep our eyes on the prize here.
Follow Rep. Jay Inslee on Twitter: www.twitter.com/JayInslee