USA/Tax Cuts—
By Suzanne Potter, producer, California News Service, a bureau of Public News Service.
In honor of tax day, labor advocates are calling on Congress to cut taxes for middle- and low-income families.
The Working Americans’ Tax Cut Act would exempt 104 million American adults from federal income taxes if they earn less than a living wage, which is about $46,000 for a single adult. Americans who make $50,000 a year would save about $2,800.
Carl Williams, senior custodian in the Lawndale School District and national vice president of the American Federation of Teachers, said the current tax structure favors the wealthy and leaves millions to struggle in poverty.
“It’s a sad case of affairs when we have folks who are really trying their best to live the American dream,” he said, “and because of the current tax laws, it’s impossible for them to get there.”
A family of four earning $95,000 would receive a $6,000 tax cut. The bill would pay for this by establishing a 5% surtax on single filers with incomes of more than $1 million a year, or about 615,000 people. The surtax would be 10% for those making more than $2 million and 12% for those pulling in more than $5 million a year.
Opponents say the bill amounts to a wealth transfer that would backfire, driving high-income people to relocate out of the country.
Economists say tax cuts for low-income folks would encourage consumer spending and boost the economy. Right now, Williams said, many people face tough choices.
“Folks work hard every day, but yet they’re not able to make ends meet,” he said. “And people should not have to make the decision if they’re going to pay the light bill or buy food. The folks that earn the least suffer the most.”
A group of Democratic senators introduced the bill on March 16. It has not yet had a hearing or a vote.
