Paying For The Lifestyles Of The Wealthy

[From http://www.moveon.org. ~ Ed.]

If the richest tycoons on Wall Street get their way, you’ll face a significant tax hike this year so they can buy another tropical island. Sound fair?

Here’s the deal: An obscure provision called the “alternative minimum tax” is going to end up raising taxes for tens of millions of middle-class households—maybe even yours—unless Congress acts quickly.1

Democrats want to cancel this tax increase for the middle class—and pay for the shortfall by closing a massive new loophole that’s allowing the richest investors on Wall Street to pay lower tax rates than you or I do.2 (Want to see how much more you pay in taxes than you would if you paid the same rate as Wall Street tycoons? Click the link below to try our calculator.)

The bill is coming up for a vote tomorrow, and super-rich investors are making big campaign contributions and lobbying hard to keep their loophole. They could kill the proposal—Congress needs to hear from the rest of us right away. Can you sign our petition to close the mother of all tax loopholes? Click here to add your name—and see how much more you’re paying:
http://pol.moveon.org/loopholecalc/o.pl?id=11644-4454980-aktziG&t=4

Here’s the petition text: “The richest tycoons on Wall Street shouldn’t pay a lower tax rate than the rest of us. Congress should close the mother of all tax loopholes.”

We’re all paying billions of dollars a year for this tax loophole. Please forward this email to your friends, family, and co-workers. We’ll email everyone who signs with the phone number for their member of Congress.

Some investment tycoons are raking in more than $1 billion a year, but they get away with paying a lower tax rate than you and me. The “carried interest” loophole lets them pay just 15% instead of the 35% most upper-income people pay—or even the 25% most middle-income people pay.3

The result: Our country is shortchanged by billions every year—and the rest of us shoulder an unfair tax burden. If we close this tax loophole, we’ll be able to afford to fix the alternative minimum tax so middle-class families don’t face a big tax hike this year.

These well-heeled investors will stop at nothing to hang onto their billions, including massive political contributions. Predictably, Republicans are trotting out anti-tax rhetoric to defend tax breaks for wealthy financiers.4 Yet even President Bush’s former top economic adviser says the tax loophole is unfair.5

This is exactly what we sent Democrats to Washington to do—fight for the people they represent. But closing this loophole isn’t popular with some of the wealthiest political donors—and some Democrats are nervous about this bold move.2 We need to show the Democrats we’ll have their backs when they fight for economic justice.

Can you sign our petition to close the mother of all tax loopholes? Clicking here will add your name:

http://pol.moveon.org/loopholecalc/o.pl?id=11644-4454980-aktziG&t=5

Thank you for all you do.

–Noah, Marika, Matt, Jennifer, and the MoveOn.org Political Action Team
Thursday, November 8th, 2007

P.S. Good news! MoveOn members in Kentucky celebrated Tuesday after helping unseat Gov. Ernie Fletcher, a Republican backed by Mitch McConnell. They knocked on over 25,000 doors before Election Day and helped test our newest get-out-the-vote tools for 2008. Congratulations, Kentucky MoveOn members!

Sources:
1. Letter to Congress from 300+ organizations in support of closing the loophole, September 5, 2007

Click to access carriedinterestsignon080707.pdf

“Alternative Minimum Tax Likely to be Large Issue in 2007,” OMB Watch, December 5, 2006
http://www.ombwatch.org/article/articleview/3656

“The Individual Alternative Minimum Tax,” Tax Policy Center,” November 10, 2006
http://www.moveon.org/r?r=3143&id=11644-4454980-aktziG&t=6

2. “Democrats Split Over Bill Affecting Backers,” Washington Post, November 7, 2007
http://www.moveon.org/r?r=3148&id=11644-4454980-aktziG&t=7

Video of Warren Buffett interview, NBC Nightly News, November 6, 2007

3. “Understanding the ‘Carried Interest’ Issue,” TPM Cafe, June 26, 2007
http://www.moveon.org/r?r=3142&id=11644-4454980-aktziG&t=8

4. “GOP calls Rangel tax plan a ‘gift’,” The Hill, October 26, 2007
http://www.moveon.org/r?r=3149&id=11644-4454980-aktziG&t=9

5. “Mankiw: Raise taxes on venture fees,” Baltimore Sun, July 19, 2007
http://www.moveon.org/r?r=3150&id=11644-4454980-aktziG&t=10

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