FOR IMMEDIATE RELEASE – May 25, 2011
Contact: Shannon Moriarty, [email protected], (617) 423-2148 ext. 108
Report: Invert State Tax Structures To Eliminate State Budget Deficits
United for a Fair Economy Releases Flip It to Fix It: An Immediate, Fair Solution to State Budget Shortfalls, Documents Current Regressive State Tax Structures
Boston, MA (May 25, 2011): A new study has found that inverting state tax structures—whereby the highest income earners would be taxed at the current percentage of income for the lowest income earners, and vice versa—would collectively raise $490 billion in new revenue, immediately eliminating states budget deficits and avoiding the serious consequences of budget cuts.
The report, titled “Flip It to Fix It: An Immediate, Fair Solution to State Budget Shortfalls” was released today by Boston-based United for a Fair Economy and 13 state organizations around the country.
“Flip It to Fix It” attributes a large part of states’ current deficits to the regressive tax structures that the report shows are designed to fail. “Trying to raise adequate revenue through a regressive tax structure—where a greater percent of income is demanded of the poor than the well-off—is like trying to squeeze water from a stone,” said Karen Kraut, coordinator of state tax policy at United for a Fair Economy and co-author of the report.
“The inadequacy of regressive tax structures puts everything we value at risk: the well-being of families, the future competitiveness of the American workforce, and the nation’s ability to rebound from the recession and prosper,” said Kraut.
The report contends that an inverted tax structure not only solves budget crises, but increases equity and best spurs steady and strong economic activity.
“California cannot cut its way out of budget problems and this report shows that the budget is solvable with reasonable and fair tax policy that would generate billions,” stated Sylvia Allegretto, an economist from the Institute for Research on Labor and Employment at the University of California, Berkeley.
The report calls on states to adopt its proposed progressive tax reforms, many of which are immediately achievable and will help solve state deficits.
The full report and state-by-state information is now available at http://http://www.faireconomy.org/flipitreport.
To schedule an interview with the authors of the study and/or representatives from state organizations, please contact Shannon Moriarty at [email protected] or (617) 423-2148 ext. 108. Video statements are also available at http://http://www.faireconomy.org/flipitreport.
The report, titled “Flip It to Fix It: An Immediate, Fair Solution to State Budget Shortfalls” was released today by Boston-based United for a Fair Economy and 13 state organizations around the country.
“Flip It to Fix It” attributes a large part of states’ current deficits to the regressive tax structures that the report shows are designed to fail. “Trying to raise adequate revenue through a regressive tax structure—where a greater percent of income is demanded of the poor than the well-off—is like trying to squeeze water from a stone,” said Karen Kraut, coordinator of state tax policy at United for a Fair Economy and co-author of the report.
“The inadequacy of regressive tax structures puts everything we value at risk: the well-being of families, the future competitiveness of the American workforce, and the nation’s ability to rebound from the recession and prosper,” said Kraut.
The report contends that an inverted tax structure not only solves budget crises, but increases equity and best spurs steady and strong economic activity.
“California cannot cut its way out of budget problems and this report shows that the budget is solvable with reasonable and fair tax policy that would generate billions,” stated Sylvia Allegretto, an economist from the Institute for Research on Labor and Employment at the University of California, Berkeley.
The report calls on states to adopt its proposed progressive tax reforms, many of which are immediately achievable and will help solve state deficits.
The full report and state-by-state information is now available at http://http://www.faireconomy.org/flipitreport.
To schedule an interview with the authors of the study and/or representatives from state organizations, please contact Shannon Moriarty at [email protected] or (617) 423-2148 ext. 108. Video statements are also available at http://http://www.faireconomy.org/flipitreport.
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United for a Fair Economy is a national, independent, nonpartisan, 501(c)(3) non-profit organization located in Boston, MA, which works to rein in economic inequality and promote a more broadly shared prosperity. The Tax Fairness Organizing Collaborative, a project of UFE, is a network of state grassroots organizations in 24 states educating and organizing for progressive taxes. More at http://www.faireconomy.org.
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