Reckless Tax Breaks for Millionaires No Help To Ailing Economy

FOR IMMEDIATE RELEASE: May 22, 2003

Contact: Margot Friedman or Alex Behrend at Array

Email: Array

Phone Number: 202-588-5180

Leaders of the Fair Taxes For All Coalition said the deal being considered by the House and Senate on tax cuts will fail to create jobs or growth and saddle American families with a crushing national debt that will put a further drain on the economy. It will write unfairness into the tax code by giving millionaires huge tax breaks that must later be paid for by draconian cuts in education, health care, Social Security and other programs that help every American family.

Despite an all-out, campaign-style blitz, the President was forced to scale back his original $726 billion tax cut plan to $318 billion and abandon his centerpiece proposal on the elimination of taxes on dividends, which was shelved by a Congress controlled by the President’s own party. In addition, the President was forced to include some — though not nearly enough — help for the states suffering budget crises.

“The American people put the brakes on the President’s massive tax cuts because they don’t believe more tax breaks for the privileged elite will help the economy. The President lost in his effort to pass his full agenda, but the real losers are the American people who will suffer further cutbacks in education, health care, child care and the other things they need to have a decent standard of living,” said Jeff Blum, Executive Director of USAction.

“This bill does provide a down payment on desperately needed state fiscal relief, but massive federal tax breaks for the wealthy will translate into higher taxes for working families at the state and local level,” said Chuck Loveless, Legislative Director of American Federation of State, County & Municipal Employees.

“The Bush tax cuts of 2001 failed to create jobs or stimulate economic growth. In fact, since the President took office, the private sector has lost well over 2.5 million jobs,” said Nancy Duff Campbell, Co-President of the National Women’s Law Center. “We know the President is pushing for more tax cuts and that this $318 billion tax cut alone will cost $800 billion if its tax breaks are made permanent. The hundreds of organizations that make up Fair Taxes For All will continue to fight the Administration’s push for further tax cuts and other destructive, job-killing economic policies every step of the way.”

“The Administration is engaged in a cruel, cynical strategy to de-fund the federal government so that there is no money for public schools for children, health care for older Americans, and other vital services,” said Ralph G. Neas, President of People For the American Way. “This Administration is undermining the economy and sacrificing the future of American families in pursuit of a reckless and regressive agenda. When it becomes clear who wins and who loses, the American people will reject the architects of this unfair and irresponsible plan.”

More information available at Fair Taxes For All!