Category Archives: Taxes

Your Federal Taxpayer Receipt

Your Federal Taxpayer Receipt

By Page May
July 07, 2011

In his State of the Union Address, President Obama promised that this year, for the first time ever, American taxpayers would be able to go online and see exactly how their federal tax dollars are spent. Just enter a few pieces of information about your taxes, and the taxpayer receipt will give you a breakdown of how your tax dollars are spent on priorities like education, veterans benefits, or health care.

Click here to use this tool and see your receipt.

Blog: Putting Tax Rates Into Historical Perspective

Blog: Putting Tax Rates Into Historical Perspective

Page May
Jul 06, 2011

From Remapping Debate–

At a time when both the President and his GOP adversaries are looking to lower income tax rates, it is helpful to get some historical perspective — a process that quickly reveals that federal income tax burdens are near post- World War II lows.

Users of this tool will be able to make a host of observations. Two that Remapping Debate have noted: the halving of the tax burden from 1945 to 2011 for a married couple with taxable income (in 2010 dollars) of $1,000,000 saves that couple more than $340,000 over the tax bill that they would have had to pay back in 1945. A similar percentage reduction in tax burden for a married couple with taxable income (in 2010 dollars) of $30,000 saves that working class couple only about $3,350 over the 1945 bill.

Check out this great, interactive resource here!

Blog: Tax Cuts and Catholic Social Teaching

Tax Cuts and Catholic Social Teaching

By Curtis Baxter
June 16, 2011

Catholic Social Teaching tells us that we should always have our mind on those who are poor. If they have a hard time fulfilling their needs we as a nation should be able to help them since we are “the richest nation” in the world. We cannot let our fellow neighbor starve; we as a nation are better than that.

But this concern for the most vulnerable in our nation is not a priority of the Republican budget proposal for FY 2012.

One important program for mothers, infants and children is WIC. This Special Supplemental Nutrition Programs helped 9.2 million people in 2010. But proposed cuts would reduce those numbers by eliminating from 325,000 to 475,000 spots. This would result from cutting $833 million in next year’s budget. Is this providing for the most vulnerable? The Republican plan also includes cuts in other vital programs that help our senior citizens and other low-income people in our nation.

One program facing cuts is the Commodity Supplemental Food Program, or CSFP. The CSFP provides food for more than 600,000 low-income families every month, and 96% of these low-income families are seniors. They want to cut $38 million from this program and $63 million from The Emergency Food Assistance Program, or TEFAP. This program helps stock food for emergency food banks that provides a nutritional food source for low-income families. These types of budgets cuts should not be allowed.

Meanwhile, Republicans are helping those in our nation who do not need help; they are the ones who are benefitting from the extended Bush tax cuts. In particular, 321,000 households (income >$1million) received a tax break in 2011 worth approximately $139,199 or $2,900 per week. If we take Bush tax cuts for one week, the $866 million would be more than enough to cover the proposed cuts in WIC. Or if we take those same Bush tax cuts for one day, there would be $120 million. That would be more than enough to cover the proposed cuts of $110 million to CSFP and TEFAP.

Is this the type of government we want? Do we want a government that neglects people who are poor and continually rewards those who do not need it? Many Republican proposals hint they want a government like that. Catholic Social Teaching once again calls our nation and its citizens to be mindful of those who are not able to meet their basic needs. What is needed is a fair and equitable approach to balancing our budget. This means providing programs to help low-income families and eliminate all Bush tax cuts that only help a small group of people who don’t need help. In the end, we all have to come together to help with budget concerns and those who are in need.

Work Cited:

Melissa Boteach (Center for American Progress), from Budget Choices Up Close, 14 June 2011

Blog: A Crack in America’s Foundation

Blog: A Crack in America’s Foundation

Stephanie Niedringhaus
May 12, 2011

Most of us know that the huge wealth gap between a tiny fringe of super-rich Americans and most of the rest of us has grown to historic proportions. But do we understand that this gap robs all of us? By that, I don’t mean just financially. Enormous wealth concentrated in the hands of the elite few is cracking the democratic foundation of our nation. It is long past time to ring the alarm bells.

Today, I attended a panel discussion entitled “Reclaiming Our Democracy; Money, Politics, and the Fall of the Middle Class.” It was sponsored by Common Cause and Faith Advocates for Jobs. The crowd was large, and the discussion was sobering.

Former Secretary of Labor Robert Reich, one of the key speakers, told a chilling tale of how decades of improved prosperity for our nation’s “middle class” (most of us) have been reversed in the last thirty years. This has come at a time when unions have lost much of their power (and have come under vicious political attack in recent months), when there is increasing disinvestment in education and infrastructure (e.g., cutting teachers), and when our tax system has grown far less progressive.

Meanwhile, our super-rich have seen their share of the nation’s wealth skyrocket! The statistics are shocking, as can be seen here.

Why did today’s discussion include “reclaiming our democracy” in the title? Because the current extreme concentration of wealth translates into political power, which is helping to shape our government’s policies and laws. The elite few can afford armies of lobbyists and legal expertise to influence the political process, and they can funnel enormous amounts of money into elections. This allows them to maintain and grow their wealth and power – at the expense of most of us, especially people struggling at the economic margins.

In short, our democracy is being chipped away, day by day.

Do you want to learn more? If so, watch for our upcoming campaign on the wealth gap – Mind the Gap!

It is time to reclaim our democracy. More to come…

Blog: Taxes Off the Table?

Blog: Taxes Off the Table?

Simone Campbell, SSS
May 06, 2011

This morning I read the headline “Boehner Says Only Taxes Off the Table in Debt Reduction Talks” and was once again outraged. The continuous Republican posturing about taxes is really about their recklessness a decade ago. In the Clinton years, when the deficit was an issue, tight federal spending and a boom economy created budget surpluses. The Republicans then immediately “forgot” that the surplus money was to be used to pay down debt and save for when the baby-boomers retired. So what did they do? They enacted sweeping tax cuts that primarily benefited the wealthiest in our country. These policies continued to shift wealth to the top. Then the Bush Administration entered the US into two wars without doing anything to pay for them. It is these actions that have principally created the mess we are in today. The fact that the Speaker Boehner wants to protect the wealth of his campaign contributors is understandably loyal to them, but disloyal to the country. It makes me wonder if the debt issue is really such a problem or only a political tempest in a tea cup. From my perspective it is a problem that needs to be addressed responsibly. This means that revenue (taxes) and spending need to be on the table. It is irresponsible and unpatriotic to do otherwise.

Blog: Please, Stop Calling Me a Taxpayer!

Please, Stop Calling Me a Taxpayer!

By Mary Georgevich
April 18, 2011

Recently, I’ve been doing a lot of thinking about the way we talk about citizenship in this country. Especially when it comes to taxes and citizenship.

Does it bother anyone else that we’re now referred to as, “taxpayers” instead of “citizens?” I hate it. It seems an attempt to make me feel like a consumer and the government should give me great customer service. I’d like to think that my contributions to my country go much farther than the check I send on April 15 every year.

My father and I were having a discussion about unions when he came to visit earlier this month, and he said something that I think is valid. “Unions got greedy,” he said. I think that’s true to an extent. But I think we could substitute any number of nouns for unions, and it would still be true. “CEOs got greedy.” “Lawyers got greedy.” “Doctors got greedy.” “Professional athletes got greedy.”

Malcolm Gladwell wrote a piece in the New Yorker where he makes this point: at some point in the 20th Century, people asked for what they could get instead of what they deserved or needed. (I’d link to the article, but unfortunately, it’s behind a paywall).

Bonuses are now like encores at concerts: expected, not special rewards for a job well done. Salaries keep climbing, regardless of actual performance, and the rich continue getting richer, even when they have to lay off workers to pay for those raises.

Americans, even those who are falling further and further behind, have come to believe that bonuses for the wealthy, or increasingly generous tax loopholes, should be the norm. And this type of thinking has affected the way we think and talk about taxes. People seem to believe that they should do everything they can to minimize the amount of taxes they pay.

But is it right? And should it continue? There’s been a lot of focus on General Electric right now, because itappears they’ve taken advantage of the complexity of the tax code to avoid paying their fair share. But they aren’t the only ones. It’s become a common practice across industries to take money that would be spent paying taxes to provide better roads, schools and other services and instead pay lobbyists and accountants to help companies avoid having to pay taxes.

What if we just accepted that taxes are necessary and good? What if we were to stop thinking that no money is enough, and started asking for what we need, instead of what we think we can get? I’m happy to be a citizen of the United States. I get clean water, sturdy roads, and I received a great education. I also know that during the worst economic downturn since the Great Depression, SNAP benefits helped keep families from starving. So I hope the taxes I paid in 2010 will help keep those benefits coming for all citizens.

Blog: The Good News about Taxes

The Good News about Taxes

By Casey Schoeneberger
April 15, 2011

Taxes are the means with which we all work together towards a greater good. With so much confusion and scornful rhetoric surrounding our taxes, however, it is no wonder they end up being more despised than loved. As a result of that confusion and rhetoric, America now faces record low revenues combined with the problem of enormous deficits.

Tax season is the perfect time to examine exactly where our federal taxes are spent and thankfully, The National Priorities Project provides the ideal tool to find those answers.

This tool demonstrates where taxes paid by your type of household (single, single head of household or married filing jointly)—and with your  specific tax responsibilities are directed. You can check where your tax dollars go by using this tool. You’ll get a chart similar to the one below that shows how much an individual would pay towards each budget area.

In the example below, as a single head of household with one child, earning $50,522 in 2010, my federal tax contribution would equal approximately $3,586. When you break that down into individual categories (as seen below) my federal contributions to Veterans Benefits through my taxes would equal a mere $139 while my tax dollars contribute $982 to military expenditures. In no way do I advocate for jeopardizing the safety and security of our military, but this skewed chart does speak to our national priorities. As much as we may be investing in our military, we are certainly not dedicating those same resources to soldiers when they return from service.

As much as we invest in the defense of our nation, we will never be secure if we continue to cut investment in international affairs programs that work to build understanding and consensus among nations. With my hypothetical tax bill, I’d contribute $43 a year to international affairs. Our country may never agree on where each dollar should be directed, but I do believe a majority of Americans would contribute more than $40 to peaceful development in other nations—before conflicts arise that demand military intervention.

chart

Take a look at this tool and see where you’d be willing to spend more (or less) of your tax dollars.

Source: National Priorities Project

To see a further breakdown of the above categories, click here.

Blog: Standing Together for Economic Justice

Blog: Standing Together for Economic Justice

Simone Campbell, SSS
April 14, 2011

I am grateful that President Obama spoke out yesterday about what is at stake in our nation. I agree that we as a nation need to focus on the thread of our relationships that bind us together into community. As he noted, it is tempting at times to think that we live this life alone and we get what we earn individually. But the truth is that we are interdependent. The top 1% of our population who have amassed so much wealth over the last 30 years are totally dependent on the workers in the country for creating that wealth. We are all dependent on the transportation and educational systems that have enabled us to build our nation. We are all dependent on these systems supported by our tax dollars.

In order to protect their wealth, I believe that the richest folks should be interested in a real safety net that allows for low wage workers to live in dignity. Social Security and Medicare are two programs that keep senior citizens who have worked all of their life out of dire poverty. This is a program that is necessary because employers neither pay enough to allow workers to save for their retirements nor provide healthcare benefits once they do retire. These two programs, paid for by workers, need to be protected from short sighted politicians who want to trash them for quick political gains. The wealthy should say no to this and certainly the rest of us should too.

I was glad to hear President Obama say that our nation is called to integrated sense of the common good into public policy. I would have gone farther and said that it is time workers received salary increases and that our faith calls of “those who have two coats to share one with those who have none.” I would add that those who have two houses, two cars, two boats, etc., are in the best position to invest in our nation. It is a good faith practice, but it also is needed to keep our country strong. The president articulated a good beginning, but we must do more to ensure that billionaire campaign contributors do not have an iron grip on the soul of our nation. Rather, it is the broad 90% of us that know we must stand together and invest in our future. This is a plan and a tax policy that makes sense.

Blog: The Budget Reflects Our Values

Blog: The Budget Reflects Our Values

Fr. John S. Rausch
Mar 20, 2011

Last February when the U.S. Catholic bishops wanted to underscore the morality involved in budget priorities, they asked Stockton Bishop Stephen Blaire to write members of Congress.

“On behalf of the United States Conference of Catholic Bishops,” he wrote as chairman of their Committee on Domestic Justice and Human Development, “we call on Congress to place the needs of the poor, the unemployed, the hungry, and other vulnerable people first in setting priorities in the Fiscal Year 2011 Continuing Appropriations Resolution.”

His comments drew strident criticism from numerous Catholics admonishing him and other bishops to steer clear of political involvement and to see their job as saving souls, promoting subsidiarity and avoiding socialism. Eventually, the budget axe did chop fingers and toes, sometimes arms and legs, off the programs championed by the bishops.

Church-going people easily get wrapped in discussions about deficits and debt framed around individualism and entitlements. Many ask: hasn’t individual freedom created the wealth in America? Don’t billionaires and mega-millionaires need tax cuts to create new jobs? Won’t entitlements bankrupt the U.S. in the future? Admitting no simple answers, these types of questions distract from the deeper questions and fuel the wrangle that is polarizing the country.

For people of faith the bishops are right to flag the morality of budget priorities. A budget actually reflects society’s values. It quantifies the importance of what to cut and what to cultivate. But, the bishops’ perspective rests on the common good and the enhancement of community, not simply the enrichment of the individual. In essence, the budget process asks what kind of community we want to promote.

For three decades the U.S. has experienced a redistribution of wealth–upward. Between 1979 and 2008 the top 1 percent saw their income increase by 224 percent, while the bottom 20 percent experienced a 7 percent loss in theirs. Currently, the top 1 percent get nearly a quarter of the nation’s income and control 40 percent of the wealth. Just 25 years ago that top group held 33 percent of the wealth and took 12 percent of the nation’s income. The result: society today mirrors the inequality just prior to the Great Depression.

Observe: with wealth comes power. Translated into politics, the super-rich can inordinately influence legislation and special interest tax breaks. Lower tax rates on capital gains, largely benefitting the super-rich, shift the tax burden to other sectors of the economy, or beg for budget cuts. These cuts, together with free trade agreements sucking manufacturing jobs overseas, force “the poor, the unemployed, the hungry, and other vulnerable people” whom the bishops want to protect, to face their own financial tsunami.

The mantra “Smaller Government, Less Taxes” fits easily on a bumper sticker, but the average total U.S. income tax rate (combining federal, state and local) ranks lower than 24 other industrialized nations.  Bank of America paid no U.S. income taxes in 2009 & 2010.  Boeing, recording profits of $9.7 billion over the years 2008-2010, actually received a tax rebate of $75 million during those years.

A vibrant democracy requires healthy educated citizens who can participate in the political process. A tax system based on the ability to pay–favored by popes and bishops for over a century–will raise the revenue so everyone can have a place at the table.

Should Congress cut funding for Head Start, the Women, Infants, and Children nutrition program, the Global Health and Child Survival Account, Hunger Free Communities Grants, or the Peace Corps?  People of faith ask: do these programs reflect profligate spending, or our better angels?