TAX WEALTH LIKE WORK:
Upper-Income Taxpayers Call for Higher Tax Rates On Investment Income
Boston, MA (April 4, 2011) -- As Congress wrestles with budget cuts of $33 billion and states struggle with federal aid cutbacks and budget shortfalls, a group of high-income individuals are advocating an increase of the tax rate on income from assets.
On Monday, April 11, Responsible Wealth will launch the Tax Wealth Like Work Campaign to focus attention on the special treatment in the U.S. tax code that rewards income from investments over income from wages. Beneficiaries of this preferential tax treatment are pledging to give all or a portion of their tax savings away to support groups working to end the special treatment of unearned investment income and promote a more fair and progressive tax system.
Under current law, income earned from wealth, such as capital gains and dividends, is taxed at a top rate of 15 percent, while income from earned wages is taxed as high as the top rate of 35 percent. “This double standard for how we tax income unfairly rewards those who already have substantial wealth over those who don’t,” said Responsible Wealth project director Mike Lapham. “This fuels the growing wealth disparities in the United States and deprives our nation of the funds we need to meet our shared needs.”
As part of this educational campaign, Responsible Wealth and its parent organization United for a Fair Economy (UFE) have created a new, interactive tax calculator that will be available starting on April 7. It estimates the tax savings individuals and families receive from the special treatment of capital gains and dividend income, along with their savings from the income tax cuts enacted under President Bush in 2001 and 2003.
Supporters who use the tax calculator can then go on to take the Tax Fairness Pledge to pledge that all or a portion of their tax savings will go to support groups working to promote a more fair tax system.
High-income and high net worth spokespeople will be available for interviews starting April 7. To arrange an interview, please contact Sue Dorfman at [email protected] or Mazher Ali at [email protected] or 617-423-2148 x101.