[Boston-editorial] Wealthy Protest Their Own $69 Billion in Tax Breaks

[Responsible Wealth]

Responsible Wealth Press Release - April 6, 2005 (Contact info after
release)
 
WEALTHY SAY, "NO, THANKS" TO TAX CUTS
 
RESPONSIBLE TAX PLEDGE TARGETS $69 BILLION IN TAX BREAKS FOR RICH
 
BOSTON-A group of wealthy Americans today announced that they would turn
down their share of the $69 billion in tax cuts that went to the wealthy in
2004, and they called on other wealthy people to redirect their federal tax
breaks to support fairer taxes through a campaign called the Responsible Tax
Pledge.
 
"It's obscene that Washington is handing out tax breaks to millionaires with
one hand and shredding the safety net with the other," said Marta Drury,
Responsible Wealth member.  "I want it to stop, so I'm calculating my 2004
tax cut and donating it to organizations fighting for responsible, fair and
adequate taxes. I don't believe that people like me with incomes over
$200,000 need $69 billion in tax cuts."
 
According to data from the Tax Policy Center, taxpayers who made more than
$1 million received an average federal income tax break of $123,592 in 2004.
This compares to $383, the average tax break in 2004 for the two-thirds of
taxpayers who make less than $50,000 per year.
 
For the wealthy individuals who have taken the pledge this year, the average
estimated tax break in 2004 was $20,000.  For several, the tax break was
more than $100,000.
 
Based on data from the Tax Policy Center, Responsible Wealth calculates that
the total of tax breaks to those who made more than $200,000 in 2004 was $69
billion.
 
"The next time a politician says we can't afford to fund something you care
about, ask yourself if $69 billion per year would help," said Scott Klinger,
co-director of Responsible Wealth.  "When you hear that the only choices we
have are to cut budgets, increase the deficit or increase your taxes,
remember that $69 billion in tax breaks went to people who made more than
$200,000 last year."
 
Responsible Wealth is helping taxpayers educate themselves about their share
of the tax cuts.  The amount each taxpayer receives from recent changes in
the federal income tax is buried in the calculations of his or her
individual income tax. Responsible Wealth has created an automated, online
calculator that individuals can use to calculate their personal 2004 tax
break.  It can be found at http://www.responsiblewealth.org/taxpledge.
 
The Responsible Tax Pledge is designed to enable wealthy recipients of tax
cuts to redirect their unwanted and unneeded "windfall" to watchdog and
grassroots organizations working for fairer taxes.  Since 1998, it has
provided hundreds of thousands of dollars in funding through mechanisms such
as the Fund for Tax Fairness at the Tides Foundation.  For example, the
Maine Citizen Leadership Fund, which recently led the successful fight
against a California-style property tax cap initiative, received a grant
from the fund. And in Washington State, which has the most regressive tax
system in the country, a grant went to a new coalition organizing for
changes in state tax policy.
 
Responsible Wealth (http://www.responsiblewealth.org) is a national network
of business people, investors and affluent Americans who are concerned about
the deepening wealth divide in America and who advocate widespread
prosperity.  It spearheads the highly publicized effort to preserve the
estate tax.
 
###
 
[TABLE: Average Value of Bush Tax Cuts in 2004]
(See a better formatted version at
https://faireconomy/join/RTPTaxBreakTable05.html)
 
2004 Income* More than $1,000,000
Share of Taxpayers 0.2%
Share of Total Tax Cuts 15.3%
Average 2004 Tax Cut $123,592
 
2004 Income* $500,000 - $1,000,000
Share of Taxpayers 0.4%
Share of Total Tax Cuts 5.5%
Average 2004 Tax Cut $21,470
 
2004 Income* $200,000 - $500,000
Share of Taxpayers 2.3%
Share of Total Tax Cuts 12.3%
Average 2004 Tax Cut $7,637
 
2004 Income* $100,000 - $200,000
Share of Taxpayers 9.3%
Share of Total Tax Cuts 24.5%
Average 2004 Tax Cut $3,826
 
2004 Income*$75,000 - $100,000
Share of Taxpayers 7.9%
Share of Total Tax Cuts 12.4%
Average 2004 Tax Cut $2,264
 
2004 Income* $50,000 - $75,000
Share of Taxpayers 14.0%
Share of Total Tax Cuts 12.4%
Average 2004 Tax Cut $1,287
 
2004 Income* $20,000 - $50,000
Share of Taxpayers 32.9%
Share of Total Tax Cuts 15.0%
Average 2004 Tax Cut $660
 
2004 Income* Less than $20,000
Share of Taxpayers 32.6%
Share of Total Tax Cuts 2.5%
Average 2004 Tax Cut $105
 
Source: Responsible Wealth calculations based on data from Tax Policy
Center, April 8, 2004. (Includes most provisions in the 2001 and 2003 acts,
EGTRRA and JGTRRA; excludes education provisions.)
 
*Includes wages and salaries, investment income, and government benefits on
a pretax basis.
 
 
CONTACT: Bob Keener
29 Winter Street, 2nd floor, Boston, MA 02108
(617) 423-2148 x 103, fax (617) 423-0191
www.responsiblewealth.org, e-mail bkeener at faireconomy.org