In Support of Raising the Marginal Tax &
Eliminating Corporate Loopholes
Sent Wednesday, April 20, 2011
Hello Senator Kerry,
You are an experienced Senator, one who knows that compromise is necessary to accomplish anything in Washington. It is clear that our government needs revenue, but the Republicans will never agree to rollback of the Bush tax cuts. We can see that that these tax cuts have not been good for our economy, and instead of creating jobs, they have served to widen the gap between the poor and wealthy. But the Republican voice with simplistic sound bites is yelling loudest and unfortunately many Americans are buying into the propaganda.
I would like to propose two changes that have a chance at winning bipartisan support to increase tax revenue without significantly harming the economy.
**First, focus on reducing or eliminating corporate tax breaks.
This practice of not taxing huge corporations is detrimental to our country. On a simple note – this is lost revenue that would serve to balance our budget. On a more complex note – this practice is lowering the morale of the tax-paying American people. We feel that corporations are taking over our government and legislation is serving the wants of corporations over the needs of the American people. We bailed out the banks and they repay the American Tax Payer by taking an indefinite tax holiday. Big Oil are turning huge profits and paying no taxes, and Americans are both paying their taxes AND suffering at the pump to fill Big Oil’s pockets. Clearly there is something wrong with this picture.
I understand that there is a fear that if those tax breaks weren’t there, the corporations would leave the country. Well, instead of incentivizing corporations to stay, I propose penalizing corporations who leave our country, taking our jobs with them. If the penalty is high enough, they will stay here with our jobs, and they will pay their due taxes. This is the voice of middle class America. Unfortunately, we haven’t been loud enough, and the corporate interests have dominated our politics. Please help put a stop to this. We need a government of and for the people, instead of government of and for the corporations. It is a privilege, not a right, for corporations to work in the American marketplace. If corporations want our American dollars, they need to serve our American needs, and it is up to our government to make sure that our American voices are heard loudest.
**Second, Raise Marginal Tax on Multi-Millionaires.
I listened to a fantastic report made by Bryan S. Ganz, a Massachusetts business owner, on Tuesday, April 19th on WBUR radio’s Emily Rooney Show. Mr. Ganz has researched the marginal tax rate over the past 100 years in reference to how it related to economic and job growth. The data is compelling: a high marginal tax rate consistently co-existed with economic growth and job creation, while a low rate, such as the 35% rate we now have, has historically shown the lack of economic growth. This report disproves the Republican buzz phrase “taxing the job creators will kill job growth”.
Most people agree that it is detrimental to raise taxes on wage earning consumers since such a high percentage of our economy is driven by consumers. However, very high earners ($ value TBD – somewhere around 2-5 million plus), can afford to pay higher tax on money made above say 5 million. They will still have money to be consumers, and if they need employees they will still be able to hire them regardless. Raising the marginal tax rate is a painless way to help balance the budget thereby lessening the need to cut services to the poor and elderly.
Our middle class wages have stagnated, meanwhile the highest wage earners are earning more and more. It is an embarrassment of riches for the few. We need a higher marginal tax rate for the sake of our entire country: to restore worldwide confidence in our fiscal health, and to show that we are sensible people who value the country as a whole over the individual multi-millionaires.
I am confident that you will be cautious about cutting human services such as Medicaid and Medicare. We need higher revenue first, and then careful cuts on wasteful spending next. Cutting human services must be done with extreme caution, and in my opinion, Medicaid money should never be handed over to the states to divvy out toward purchasing private insurance. We can reduce spending within the current system instead of throwing it out altogether. I’m in my 30s; I want Medicare available for me when I retire.
Please share this report with your colleagues across the aisle. I have also written to Scott Brown. I would like to see you work together. I’m sure that you can agree to put the American majority 1st, and the high earners and big corporations 2nd.
Thank you for you time and consideration,
Massachusetts Resident, Tax Payer, Eager American Citizen