Campaign for America’s Future Commends Rep. Schakowsky on the Introduction of the Fairness in Taxation Act

Washington, DC – The Campaign for America’s Future commends Rep. Jan Schakowsky (D-IL) and all of the original co-sponsors of the Fairness in Taxation Act for taking an important step forward in an effort to reduce the deficit and restore fairness.

Roger Hickey, co-director of the Campaign for America’s Future said:

“Any sensible program for deficit reduction must begin with changing the massive tax cuts for the very wealthy. Those tax give-aways were a major cause of our current deficit. In an era of excessive inequality we should end Bush era tax cuts for the wealthiest Americans. We need progressive revenues not just to bring down deficits, but also to finance investments in job and sustainable growth. The introduction of the Fairness in Taxation Act is an important step that will be popular with the American people.”

Robert Borosage, co-director of the Campaign for America’s Future said:

“The wealthiest Americans now pay lower effective tax rates than the nation’s teachers. This bill is an important step in restoring fairness.”

According to the office of Congresswoman Schakowsky, The Fairness in Taxation Act asks millionaires to pay their fair share by enacting new tax brackets for income starting at $1 million and ending with a $1 billion bracket. If enacted, the new brackets would be:

  • $1-10 million: 45%
  • $10-20 million: 46%
  • $20-100 million: 47%
  • $100 million to $1 billion: 48%
  • $1 billion and over: 49%

The bill would, if enacted, also tax capital gains and dividend income at ordinary income rates for those taxpayers with income over $1 million. According to Citizens for Tax Justice this legislation would raise more than $78 billion if enacted for 2011.