Congress should oppose efforts to increase tax breaks for wealthy Americans and highly profitable corporations this year, 56 organizations across Alabama wrote in a letter sent to Alabama’s congressional delegation Wednesday. Lawmakers instead should seek to boost tax credits that expand opportunities for working people and families, the letter said.
“We urge you and all members of the Alabama delegation to reject renewed or expanded tax cuts for the wealthiest people in our society,” the groups wrote. “And we urge you instead to provide meaningful tax reductions for ordinary families in Alabama and nationwide through an expanded Child Tax Credit and expanded Earned Income Tax Credit.”
Alabama Arise is among 56 organizations that signed the letter to the state’s two U.S. senators and seven U.S. representatives.
The Tax Cuts and Jobs Act (TCJA), enacted in 2017, increased federal deficits by nearly $2 trillion while lavishing tax cuts on the country’s wealthiest households. The law failed to live up to proponents’ claims that it would pay for itself or fuel wage increases for most workers, the organizations’ letter said.
Many TCJA provisions are set to expire this year, including numerous tax breaks that disproportionately benefit wealthy people. These include higher estate tax exemptions and a cut to the top marginal income tax rate. Lawmakers will have an opportunity during this year’s federal tax and budget debates to choose a better, more inclusive path, the organizations wrote.
“The expiration of these provisions [is] an opportunity to address long-standing inequities with our tax code and to raise more revenue to meet our country’s current obligations and address critical unmet needs,” the groups wrote.
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