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Citizens
for Tax Justice report shows Rhode Island millionaires
gain the most from Bush tax cuts for Capital Gains &
Dividends!
The
report: http://www.ctj.org/pdf/capgainsdivtaxcuts.pdf
Rhode
Island Fact Sheet
A
new
report from Citizens for Tax Justice with state-by-state
data shows how the benefits of these tax breaks are
distributed among different income groups and examines
available data on the revenue collected to see if revenues
can actually increase in response to a tax cut.
The
report finds that:
- The majority of
the benefits of these tax cuts go to the richest
one percent in every state .
- Revenue collected
by the capital gains tax was much higher during the
Clinton administration, when the tax rate on capital
gains was higher .
Karen
Malcolm, executive director of Ocean State Action states,
“The timing of this report is important to understanding
the economic woes we face here in Rhode Island . We
see a significantly widening gap between rich and poor,
a declining middle class, and a structural state budget
deficit that is used as an excuse for gutting Rhode
Island 's social safety net and for steep increases
in property taxes.”
The
new report shows that among Rhode Islanders more than
65% of those benefiting from the Bush tax breaks earn
over $422,000 annually, with an average income of $1.2
million. The tax windfall realized by these wealthy
households under the Bush tax cut averages $20,482 each.
Malcolm points out, “ Rhode Island 's wealthiest have
hit the trifecta. When you add the federal tax windfall
to the state's cut in the tax on capital gains and the
alternative minimum tax available only to the highest
income households, this group saves more than $30,000
a year for themselves. This comes at significant cost
to Rhode Island 's middle, moderate and low-income families.
The cost of just these two state tax cuts will be $62.4
million in 2009, at a time when there is a desperate
need for revenue to close the state's deficit.”
As
middle, moderate and low-income Rhode Islanders continue
to struggle with skyrocketing gas, housing and food
prices and as the state enacts deep cuts to healthcare,
education and other important social programs, Malcolm
argues, “we must be ever-vigilant in ensuring that every
Rhode Islander contributes their fair share in Federal
and State taxes to help meet top priorities and to ensure
every person has the opportunity to get ahead.”
Citizens
for Tax Justice is a nonpartisan, nonprofit research
and advocacy organization dedicated to fair taxation
at the federal, state, and local levels. To contact
Citizens for Tax Justice directly about the report call
Steve Wamhoff at 202-299-1066 x33
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The
report: http://www.ctj.org/pdf/capgainsdivtaxcuts.pdf
State-by-state fact sheets: http://www.ctj.org/html/cgdiv0508.htm
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