Taxes

We had the privilege of going to the White House this week to hear President Obama deliver remarks on the economy and taxes. There were lots of pretty cool parts (including a peek at the portraits of the First Ladies!), but the real highlight was the President’s speech exhorting Congress to end the Bush-era tax cuts for the richest two percent. Here’s why we think that is such a great idea:

• We can’t afford to continue tax breaks for the households who need them the least. That will cost about $1 trillion over the next ten years.
• Ending the tax cuts on income above $250,000 means that 98 percent of Americans won’t see their taxes go up.  
• Giving lavish tax cuts to the wealthiest Americans didn’t lead to strong job growth or shared prosperity, but it did increase the deficit – a lot.

We have a few thoughts on better ways to spend $1 trillion than on more tax breaks for the wealthy. Read more »

The IRS recently released new data on individual income taxes paid in 2009, including a report on “The 400 Individual Income Tax Returns Reporting the Largest Adjusted Gross Incomes Each Year, 1992-2009.” So interesting, right?!

...ok, so maybe the IRS could have come up with a catchier title. But the report really is fascinating, in a “wow, that’s crazy and unfair” sort of way – especially when you compare the data on the richest 400 American households (with annual incomes averaging around $200 million) to income tax data for the rest of us, as David Cay Johnston did in his excellent piece on “The Fortunate 400.” Johnston’s whole article is well worth a read, but here are a few particularly shocking statistics:

• Six of the 400 richest American households paid no federal income taxes in 2009. Yes, you read that correctly – a few of the people with the very highest incomes in the country, raking in on average half a million dollars every day, managed to pay zero federal income tax in 2009.
• 110 of the top 400 paid a federal income tax rate of 15 percent or less... just like a whole lot of people making a whole lot less than $200 million!

The ranking member on the House Budget Committee, Chris Van Hollen (D-MD) introduced an alternative to the appalling budget bill the House is voting on and expected to pass today. Rep. Van Hollen’s proposal also would avert the automatic across-the-board cuts to defense and non-defense programs that are scheduled to take effect in January 2013. But instead of slashing Medicaid, Food Stamps, child care, and dismantling the Affordable Care Act, Van Hollen’s alternative would have produced savings by eliminating taxpayer subsidies for big oil, cutting unnecessary agriculture subsidies, and adopting the Buffett Rule to ensure that millionaires pay their fair share of taxes.

House members won’t be able to vote today on Rep. Van Hollen’s bill. The House Rules Committee refused to allow it. Read more »

Millionaires have had a very good week. Women and their families have had a very bad week.

It started Monday, when 45 Senators voted to block the "Paying a Fair Share Act" (S. 2230), which would have implemented the Buffett Rule by requiring households with incomes above $1 million to pay at least a 30 percent income tax rate. Tax revenues support programs vital to women and their families at every stage of their lives, and women pay the price when millionaires and billionaires avoid paying their fair share of taxes.

Today, the House passed "The Small Business Tax Cut Act" (H.R. 9). The bill provides a 20 percent tax deduction in 2012 for businesses with fewer than 500 employees — not exactly your mom-and-pop store!

H.R. 9 would have more aptly been named the Giveaway to Millionaires Act. The Tax Policy Center estimates that taxpayers making over $1 million a year would receive nearly half of the windfall. Exactly how big is this tax break? The average millionaire would get a new tax break of $44,635 next year. The average benefit for low-income tax payers in the bottom fifth of the income distribution? Just $2. All while adding $46 billion dollars to the deficit over the next ten years. Read more »

Happy Tax Day! I realize paying taxes is not something most people relish, but when I have to send a check to Uncle Sam, I try to focus on all of the important services my tax dollars support. And I try not to think about the people who make a whole lot more money than I do but pay a smaller share of their incomes in taxes – like, say, the 22,000 millionaires who paid less than 15 percent of their income in federal taxes in 2009. (Even if you paid only a few dollars in federal income tax, that’s more than the 1,470 households with incomes over $1 million in 2009 who paid zero dollars in federal income tax.)

I know I’m not the only one who believes it’s wrong for some millionaires and billionaires to pay a lower tax rate than many middle-income families pay. Last night, 51 Senators (49 Democrats, 1 Independent and 1 Republican) voted to begin debate on the Paying a Fair Share Act (S. 2230), often referred to as the “Buffett Rule,” which would require households with incomes above $1 million to pay at least a 30 percent income tax rate (with a phase-in for incomes between $1 million and $2 million). Read more »

Tomorrow, April 17, 2012, is both Equal Pay Day and Tax Day—which means it’s a very good day to focus on economic fairness and what achieving it would mean for women.

First, fairness also requires closing the pay gap. Almost fifty years after passage of the Equal Pay Act, the typical woman working fulltime, year-round continues to be paid only 77 cents for every dollar paid by her male counterpart—a loss of close to $11,000 a year at the median.To catch up with the wages her male equivalent had been paid by December 31 of last year, this typical woman had to work through April 17. Even after taking into account factors such as occupation, education, and hours worked, women still consistently earn less than men, and this pay gap translates into lower unemployment benefits when women lose their jobs, lower Social Security benefits when they retire, and less ability to meet their families’ needs.

Because more and more families depend in whole or in part on a woman’s earnings, the pay gap doesn’t just shortchange women. It shortchanges everyone. Yet the pay gap persists, in part because pay discrimination is hard to identify and hard to challenge. Read more »

On Monday, the Senate is set to vote on whether to begin debate on the Paying a Fair Share Act (S. 2230) sponsored by Sen. Whitehouse (D-RI). By requiring that all households with incomes above $1 million pay at least a 30 percent tax rate (with a phase-in for incomes between $1 million and $2 million), this bill would implement the tax policy often referred to as the “Buffett Rule” (after Warren Buffett, the billionaire who famously pays a lower effective income tax rate than his secretary). The details of the bill are rather complex, but the principle behind it is simple – and true: millionaires and billionaires shouldn’t be paying a lower tax rate than many middle-income families pay.

So why do I think millionaires aren’t already paying their fair share? And why should women care? I’m glad you asked: 

The rich are getting richer, while the poor are getting poorer.

I’m sure you’ve heard this maxim before, but it’s especially true today. Read more »

Tired of fighting cuts to programs that women and their families depend on in the name of deficit reduction — while millionaires and billionaires haven't been asked to contribute an extra penny? Think it's time for millionaires and billionaires who pay lower tax rates than many middle-class Americans to start paying their fair share?

Take Action: Tell your Senators to support the Paying a Fair Share Act of 2012!

On April 16, we expect the Senate to vote on an important piece of legislation, the Paying a Fair Share Act of 2012 (S. 2230). The bill would ensure that those with incomes over $1 million annually pay at least 30 percent of their income in federal taxes. The legislation, introduced by Senator Sheldon Whitehouse, was inspired by billionaire investor Warren Buffett, who highlighted the unfairness of a tax system that permits him to pay a lower tax rate than his secretary.

It's time for this absurdity to stop. Read more »

Usually YouTube is not the procrastinators' friend, but as we approach the April 17 tax filing deadline, last-minute filers may want to check out the IRS' YouTube videos to assist them in their tax preparation. For last-minute tax tips, information about extensions of time or tax payment options, and tracking your refund, visit the IRS YouTube Channels in English, Spanish and American Sign Language. Read more »

Welcome to NWLC’s first weekly roundup for April. April is Sexual Assault Awareness Month, so I thought I’d kick things off by sharing a few ideas of how you can support victim of sexual assault and help raise awareness during the month. Also this week: our latest infographic, some lady athletes making history, and more.

All throughout April, the National Sexual Violence Resource Center will be providing resources and ways to get involved with Sexual Assault Awareness Month, or SAAM for short. The 2012 SAAM Day of Action passed us already (it was this past Tuesday, April 3), but you can see what other current campaigns are in the works here, including Tweet About It! Tuesdays every Tuesday in April at 2pm ET. SAAM activists from around the country will be using the hashtag #Tweetaboutit for these weekly chats, in addition to #SAAM and #SAAM2012.

You can also check out Take Back The Night’s calendar to see if there will be a TBTN event in your community in the coming weeks.

Yesterday we published a new infographic detailing what tax breaks for millionaires cost. The

 average tax cut per millionaire in 2012 – $143,000 – could help support a number of programs, like Head Start or Pell Grants. Want to learn more? Check out the graphic – it opens in full size if you click on it.

Read more »