Extending Tax Cuts for the Richest Americans Would Raise Deficit, Almost Entirely Benefit Millionaires

Clarence, NY – Today the Hochul for Congress Campaign responded to Chris Collins’ call for more tax cuts for the rich, a move that would disproportionately benefit the wealthy and add nearly $1 trillion to the deficit. After ignoring Representative Hochul’s calls to join together to support the middle class tax cuts, Collins continues to pursue tax cuts for the wealthy.

“Chris Collins’ call to add nearly $1 trillion to the deficit to pay for tax cuts for millionaires and billionaires shows just how out of touch he is with the 27th District,”said Campaign Manager Frank Thomas. “Kathy has always been an advocate for keeping taxes low for the middle class while we work to cut spending and balance the budget. That is why last week she called on Chris Collins to join her in supporting a package that extends tax cuts for the middle class. If we’re going to have a serious conversation about addressing our deficit, we will have to get serious about cutting spending and ask the rich to pay their fair share.”

Economists say that cutting taxes for the richest Americans would raise the deficit by “nearly $1 trillion” and give the most benefits to people making more than $1 million per year. The Center for Budget and Policy Priorities wrote:

Extending the tax cuts on incomes in excess of $250,000 would add nearly $1 trillion to deficits over 2013 to 2022, but benefit only about the highest-income 2 percent of households. The biggest benefits would flow to the very highest-income people…more than 80 percent of the value of the upper-income tax cuts would go to people who make more than $1 million a year. [Center on Budget and Policy Priorities, 7/19/2012]

Hochul has a strong record of cutting wasteful spending. She crossed party lines to vote for the Balanced Budget Amendment, joined Republicans to vote for a bipartisan effort to cut the deficit by more than $2 trillion, and voted multiple times to cut foreign aid to countries like Pakistan. According to Fox News, “the [Budget Control Act] will initially cut spending by $900 billion, it also tasks a new committee with finding another $1.5 trillion in deficit reduction by the end of the year.” [House Roll Call Vote 858, 11/18/2011; Roll Call Vote 690, 8/1/2011; Fox News, 8/2/2011; Roll Call Vote 265, 5/17/2012; Roll Call Vote 510, 7/7/2011]

According to the non-partisan Center for Budget and Policy Priorities (CBPP), just 2.5% of small business owners face top tax rates. In a July 2012 study, they wrote “allowing the top two marginal tax rates to return to pre-2001 levels as scheduled next year would affect very few small businesses, a recent Treasury Department study found. The study shows that only 2.5 percent of small business owners face the top two rates.” [Center on Budget and Policy Priorities, 7/19/2012]

According to the CBPP, the suggestion that raising taxes on the rich would seriously affect small business is based on a “misleading” claim. They wrote:

The claims that allowing the Bush tax cuts for high-income people to expire would seriously harm small businesses rest on an exceedingly broad, and misleading, definition of “small business.” The definition is so broad, in fact, that under it, both President Obama and Governor Romney would count as small business owners — as would 237 of the nation’s 400 wealthiest people. [Center on Budget and Policy Priorities, 7/19/2012]

Hochul has already been a steadfast supporter of extending the middle class tax cuts and has called on Chris Collins to join her. On July 9th, Hochul sent a letter to House and Senate leadership that stated, “I write to strongly urge the House and Senate leadership to quickly schedule a vote to permanently extend the expiring middle class tax cuts.” On July 27th she asked Chris Collins to support the extensions of the middle class tax cuts. [Hochul Letter to Congressional Leadership, 7/9/2012; Hochul Press Release, 7/27/2012]

Chris Collins supports tax cuts for the wealthiest Americans. According to a Collins campaign press release, “Collins supports a full extension of the tax cuts.” [Collins Press Release, 7/9/2012]