Resources

January Update

The deal reached at the end of 2010 on the fate of the Bush tax cuts provided a moderate, yet temporary solution to the potential expiration of the cuts. While the agreement succeeded in securing an extension of unemployment benefits for those out of work and an extension of tax cuts for America’s middle class and working families, it also extended tax cuts for millionaires and dramatically cut the estate tax. The President made it clear that we can’t afford these tax cuts on the high end and the changes to the estate tax, despite current plans by some members of Congress to keep them in place. It’s important to continue to press the case to end the tax cuts and restore the estate tax. Much work remains to be done in the coming year to prepare for a more formal and permanent debate in 2012.

The Business Case for Letting High-End Tax Cuts Expire

From Business for Shared Prosperity

“It makes good business sense to let temporary tax rates for the highest income brackets expire and revert to 1990s levels on January 1, 2011 as scheduled. Families should keep tax cuts on their income below $250,000, but well-off families should not get extra tax cuts on their income above $250,000.

Congress should not let Wall Street and big business CEOs hide behind small business to justify a budget-busting $700 billion tax giveaway over the next decade that would be even more harmful for Main Street than it was the last decade. Instead, Congress should build on constructive action like the Small Business Jobs Act and the overdue infrastructure investment we need to create jobs and stay competitive in the global economy.”

CTJ: United States Remains One of the Least Taxed Industrial Countries

From Citizens for Tax Justice

The co-chairs of the President’s fiscal commission have released a series of options to reduce the long-term federal budget deficit by $3.8 trillion over ten years. Three fourths of the savings would come from cuts in public services while only one fourth would come from closing tax loopholes and reforming the tax system.

This makes little sense, given that the United States is one of the least taxed countries in the developed world. A new report from Citizens for Tax Justice explains that the most recent data from the Organization for Economic Cooperation and Development (OECD) show that the U.S. is the third least taxed country of the 27 OECD countries for which data are available.

Video Help on the EITC

The popular Earned Income Tax Credit due diligence “Tax Tales” videos, shown during this summer’s tax forums, are now online. These short videos provide an entertaining background and explanation on some of the tricker parts of the EITC.

State-by-State Estate Tax Figures: Number of Deaths Resulting in Estate Tax Liability Continues to Drop

From Citizens for Tax Justice

New data from the IRS show that only 0.6 percent of deaths in the U.S. in 2008 resulted in estate tax liability in 2009. (Estate taxes are usually filed during the year after the year in which a person dies.) The estate tax that would exist under President Obama’s tax plan would affect even fewer estates, which demonstrates why Congress should consider enacting a more robust estate tax than what President Obama proposes.

State Tax Issues on the Ballot on Election Day

From Citizens for Tax Justice

The stakes will be high for state tax policy on Election Day, with tax-related issues on the ballot in several states. With a couple of notable exceptions (a new income tax in Washington and rollback of corporate tax breaks in California), these ballot initiatives would make state taxes less fair or less adequate (or both).

The Consequences of Conservative Economic Policy: A Tried and Failed Approach that Should Not Be Repeated

From the Center for American Progress, this report details why conservative economic policy has failed our nation time and time again.

NWLC: Grim Poverty Data Show Need for Fair and Responsible Tax Policies

New anaylses from the National Women’s Law Center explain why the poverty rates reported by this year’s Census demonstrate the need for a fair tax policy.

Let’s Get Our Priorities Straight

A new analysis from the Center for American Progress explains why the current debate on taxes needs to be refocused.

From CAP: “Pledge to America” Not as Fiscally Responsible as It Claims

“Republicans in Congress released ‘Pledge to America’ today, a plan they characterize as laying out a ‘new governing agenda.’ Integral to that plan is a new commitment to ‘fiscal responsibility.’ Our analysis, however, shows that implementing the plan’s proposals would increase the federal budget deficit and accelerate growth in federal debt.”