9to5 Signs on to Americans for Responsible Taxes Letter

 August 5, 2010

Dear Senator, We’re writing to express our strong opposition to recent proposals to temporarily extend the tax cuts for wealthy Americans adopted in 2001 and scheduled to expire this year. While some argue that continuing the tax cuts for the wealthy is necessary for a stronger recovery and job creation, the reality is that it would have little positive impact on the economy and would pose serious risks to our long-term economic health.
A Congressional Budget Office analysis found that extending the 2001 and 2003 tax cuts for high-income households would do less to stimulate the economy than any other stimulus proposal CBO examined. An extension would cost about $40 billion for 2011, and according to CBO’s analysis, spending these funds instead to extend unemployment insurance benefits or enact a job-creation tax credit would create many more jobs and much more growth.
Even a temporary extension of the high-income tax cuts would be a mistake. Not only are there better ways to spur job creation, but a temporary extension would likely lead to further extensions down the road and possibly a permanent extension in the next Congress. Over the next decade, extending all of the 2001 and 2003 tax cuts would increase deficits and debt by $1 trillion more than if (as we favor) Congress extended only those tax cuts that benefit middle- and lower-income working families. Of course, high-income families will still benefit from the extension of lower rates.
Over recent months, the Congress and the American public have become more focused on our long-term fiscal problems. This led to the creation of the bipartisan National Commission on Fiscal Responsibility and Reform earlier this year, as well as proposals to cut spending that have gained support in Congress. Given this increasing concern about our fiscal trajectory, it makes little sense to adopt a policy that has the potential to worsen it substantially, including a temporary extension. Letting the high-income tax cuts expire on schedule also has significant popular support. Polls indicate that a majority of the public favor increasing taxes on higher-income taxpayers who have received substantial tax breaks in order to reduce the deficit.
In closing, we strongly urge the Congress to extend only those tax cuts enacted in 2001, as amended, that are targeted on middle- and lower-income working families. We can’t afford to extend the Bush era tax cuts for the wealthy that will do little to help the economy and deny us the opportunity to invest in the economy in the short run and begin to address the deficit once the economy picks up. This is one of the most important fiscal decisions Congress will make in years; the American public is counting on Congress to be fiscally responsible and make the right choice about which tax cuts to extend – and which to let expire.
Sincerely, 9to5, National Association of Working Women AFL-CIO AFSCME AFT – American Federation of Teachers Alliance for Retired Americans American Association of University Women Americans For Democratic Action AFGE - American Federation of Government Employees Campaign for Community Change Campaign for America’s Future Center for American Progress Child Welfare League of America Children's Advocacy Institute CTJ - Citizens for Tax Justice CLASP - Center for Law and Social Policy CHN - Coalition on Human Needs Communications Workers of America Community Action Partnership Community Organizations in Action Every Child Matters Education Fund Insight Center for Community Economic Development Institute for Policy Studies-Program on Inequality and the Common Good Interfaith Worker Justice Leadership Conference of Women Religious Leadership Team of the Institute of the Sisters of Mercy of the Americas Main Street Alliance National Advocacy Center of the Sisters of the Good Shepherd National Association of Counsel for Children National Association for the Education of Young Children NEA - National Education Association National Employment Law Project National Low Income Housing Coalition NOW - National Organization for Women National Women's Law Center NETWORK, A National Catholic Social Justice Lobby Northwest Federation of Community Organizations OMB Watch Responsible Wealth RESULTS SEIU - Service Employees International Union Turning Anger Into Change United Church of Christ, Justice and Witness Ministries UFE - United for a Fair Economy UTU - United Transportation Union USAction Voices for Progress Women's Institute for Freedom of the Press YWCA USA UAW - International Union, United Automobile, Aerospace & Agricultural Implement Workers of America