Candidate Review - Tax Reform - Representative Dennis Kucinich

For Dennis Kucinich something a bit different. Apparently he has already proposed his plan to improve our tax plan, in "The Progressive Tax Act of 2003." Commenting on the proposal, Kucinich said, "Our tax system is in need of desperate repair. 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."

Here is a summary of the bill.

The Progressive Tax Act of 2003

To resolve the impending crisis, action must be taken now to protect the progressive tax system, provide transparency, and ensure adequate funds for the federal government to meet its obligations. This can only be accomplished by shifting tax burden from work to accumulated wealth, from the working poor to the wealthiest, and from children to
corporations.

In Title I, the bill provides tax relief for workers and families:

1. $1530 Payroll Tax Credit: A refundable tax credit for people who work, linked to what they paid in payroll taxes and phased out at higher incomes. This tax credit is simple, targeted to relieve a high tax burden, provides a stimulus effect, and encourages work.
2. $2000 Simplified Family Credit: A refundable tax credit that 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
simplify the tax code, provide greater transparency, provide extra work incentives, and a stimulus effect.

In Title II and Title II, the bill closes corporate loopholes and restores the federal budget:

1. Restore integrity to the tax system by closing corporate loopholes and setting tough penalties to prevent corporate tax shelter abuse.
2. Repeal most of the erroneous Bush tax cuts in the past three years that benefited the wealthy. Repeal other tax benefits that provide benefits only to the wealthy and have no stimulus effect.

The Progressive Tax Act of 2003 will provide a positive impact on the federal budget and deficit. It 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 unfair Bush tax cuts, corporate tax loopholes, and other inappropriate tax giveaways. The bill therefore raises a sum total of $20 billion per year that remains available for deficit reduction or new spending.