The 2001, 2002, and 2003 Bush tax cuts have created a tax system that favors the wealthy over the working class. These tax cuts have complicated the tax code with more loopholes and have saddled the federal treasury with record deficits.
In response, Kucinich has introduced bill that creates a more fair, simple, and adequate tax system. The Progressive Tax Act of 2003 gives $87 billion per year to people with modest income and families in the middle class. The bill collects an additional $107 billion per year from the Bush tax cuts, corporate tax loopholes, and other tax giveaways. The bill therefore raises a sum total of $20 billion per year that remains available for deficit reduction or new spending.
First, the bill provides a refundable $1530 Payroll Tax Credit for people who work. This tax credit is simple, targeted to relieve a high tax burden, provides a stimulus effect, and encourages work.
Second, the bill provides a refundable $2000 Simplified Family Credit. This simplifies the tax code by consolidating the EITC, Child Tax Credit, Additional Child Credit, and exemption for children into one Simplified Family Credit. This tax credit will provide greater transparency, provide extra work incentives, and a stimulus effect.
To raise federal revenue the bill will close corporate loopholes and set tougher penalties to prevent corporate tax shelter abuse. In addition, the bill will roll back most of the Bush tax cuts in the past three years that benefited the wealthy.
"Our tax system is in need of desperate repair," said Kucinich. "Tax cuts to the wealthiest one percent of Americans do not create jobs and do not increase wages for working people. The only way to real economic strength and security is to provide real tax relief to those who need it most, workers and families. This bill enables real economic growth and progressive tax reform while providing fiscal responsibility."
For all the details, link to
http://www.kucinich.us/issues/tax_cuts.php
