The House will vote this summer on whether to extend all or some of the Bush tax cuts. The battle between the Democrats and Republicans is viscious and won't create a progressive, fair and just tax system.
Republicans want to extend all of Bush the tax cuts. Clearly, this is a bad idea.
If we continue all of the Bush tax cuts and add in the effects of automatic spending reductions scheduled to take effect this year, the federal budget deficit will be reduced by 5.1 percent of gross domestic product (GDP) in 2012 and 2013 according to the non-partisan Congressional Budget Office. The result will be lower taxable incomes and higher unemployment.
The Democrats are divided.
President Obama says he wants to keep the tax cuts for households earning less than $250,000 per year ($200,000 for individuals). If we end the Bush tax cuts for households earning more than $250,000 per year, it could generate an estimated $1 trillion in revenue.
House Minority Leader Nancy Pelosi (D-CA) supports ending the tax cuts only for households making $1 million or more annually. That means the tax cuts will expire only for the top one-half of 1% of households. Pelosi's proposal would generate 43% less revenue than Obama's proposal according to Citizens for Tax Justice.
Greens believe ending the Bush tax cuts for households earning more than $250,000 is a good idea, but we advocate for comprehensive tax reform to create economic justice and environmental progress.
- Exempting people earning less than $25,000 per year and families earning less than $50,000 per year from federal and state income taxes.
- Ending all corporate welfare. Eliminating subsidies for the dirty energy industries alone through the End Polluter Welfare act would save nearly $110 billion.
- Establishing a financial transaction tax.
- Restoration of the estate tax.
- Creating a wealth tax of 0.5% per year on an individual's assets over $5 million.
- Establishing a system of carbon taxes on all fossil fuels.
- Enacting true cost pricing so that prices reflect true enviornmental cost.