logo - Have you paid your billionaire today? Nearly $520 billion of Tax Cuts goes to the Top 10% each year - paid for by the Bottom 90%. Cost to each taxpayer in the Bottom 90% - $4,031 in lost government services for each taxpayer that goes to the Top 10% and large corporations. The majority of this, $2,566, is in lost services for each taxpayer that goes to the Top 1%. Have You Paid Your BILLIONAIRE Today?

Nearly $520 BILLION in Tax Cuts
goes to the Top 10% each year
PAID FOR by the Bottom 90%

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Call Congress to tell them to REPEAL unfair Loopholes, to END the sequester, and to expand services for the Bottom 90% (aka the MAJORITY of Americans)

Yes, America, we can
change this:


TAXPAYER-FUNDED
Millionaire
Assistance Line

1-800-CONGRESS


But if you want this

Welfare for the Wealthy

to ever stop, then It’s up to
you – yes, YOU – to tell your elected officials to fix this.
If We the People don't stand up, it won't change. And if it doesn’t change, what’s to stop the Top 10% from taking even MORE of your money?

N O T H I N G

Call Congress to tell them to REPEAL unfair Loopholes, to END the sequester, and to expand services for the Bottom 90% (aka the MAJORITY of Americans)
  • The Tax Loophole Business – and how much it costs YOU The Tax Loophole Business — and how much it costs YOU Tax Loopholes are Big Business — half a TRILLION dollars each year in lost government services that goes from the Bottom 90% to the Top 10%. But this is NOT what the Founding Fathers fought and died for.
  • Their Needy Billionaire was British East Indies Company Their Needy Billionaire was British East Indies Company which ruthlessly dominated the colonists by unfair trade practices and preferential taxes for its benefit only. Americans knew then, as they do now, that this does great harm to the economy.
  • "Government is instituted for the COMMON good ... "Government is instituted for the COMMON good ... ... for the protection, safety, prosperity, and happiness of the people; and NOT for profit or private interest of any one man ... or class of men". They knew what concentrated wealth looked like — and they didn't like it.
  • Part of the common good was funding public infrastructure Part of the common good was funding public infrastructure like roads, even in rural areas. Without them, farmers couldn't get their crops to market, and the nation would starve. They knew that good infrastructure is crucial for an economy to thrive.
  • Even education was seen as a public good, and raising taxes for it was an essential public service that was necessary to protect our democracy 	Even education was seen as a public good Raising taxes for education was considered an essential public service and NECESSARY to protect our democracy
  • As with the colonists, Needy Billionaires threaten our democracy & our economy Needy Billionaires threatened their democracy — & ours The Founding Fathers fought and died because they believed that the Needs of the NATION outweighed the needs of the Privileged Few. They gave us the tools to win this fight — it's up to you to use them.

     

THE BIG PICTURE

  • How Much is $520 billion? It's more than the budgets of Health and Human Services Department; Departments of Education, Transportation, Agriculture, and Energy; State Department, Housing and Urban Development, Homeland Security, Veterans Affairs, Justice Department and NASA combined. Tax cuts, loopholes and tax expenditures are also called Spending in the Tax Code'
  • Who Benefits from Tax Loopholes? 24% goes to the Top 10th percentile, 17% goes to the 95th to 99th percentiles,12% to the 90th to 95th percentiles,14% to the 80th to 90th percentiles,14% to the 60th to 80th percentiles, 10% to the 40th to 60th percentiles, 8% to the 20th to 40th percentiles, and only 3% to the 0 to 20th percentiles
  • What else could $520 billion pay for? We could expand Medicare to another 49 million Americans; or cover 64% of the annual cost of Social Security; or repair all levees, dams, ports, toxic waste sites, inland waterways, underground water pipes, and airports; or pay down 85% of the deficit for this year. Repairing our infrastructure would create 6.25 million new jobs, jobs that can't be outsourced
  • Cutting tax expenditures is the best way to reduce federal spending, spoken by Martin Feldstein, President Reagan's economic advisor. Tax expenditures is the largest single largest category of federal spending
  • The only way to stop loopholes is for Congress to repeal them. Once enacted, tax expenditures never expire. They're subject to no oversight and no Congressional budget limits

SPECIFIC LOOPHOLES

This section is a series of tabs that looks at specific loopholes versus alternative uses of that money. Loophole amounts come from either the Congressional Budget Office or the Govenment Accountability Office. Infrastructure costs are from the American Society of Civil Engineers. Additional information is in the Sources section below. Click on the headings below to expand each tab.

On the left side of each tab is a series of numbers. The top number in red is the amount of money that goes to the Top 10% every single year for each loophole. The top number in white is the amount that goes to the Top 1%.

Only amounts that go to the Top 10% are included. For example, many taxpayers in the Bottom 90% use the mortgage interest deduction or receive tax benefits for retirement accounts. These amounts are NOT included — only amounts that go to the Top 10% are used.

The other numbers are the amount of government services that are lost each year for every single taxpayer in the Bottom 90%.

It's what the government could have provided in services that would have benefited ALL Americans (like fixing roads or building new schools), but didn't — because Congress decided to donate that money to the Top 10% or to many of the world's most profitable corporations.

$47


billion

A BETTER INVESTMENT - Fix 1/2 of all Train Tracks — $50 billion

$67


billion

A BETTER INVESTMENT - Fix 1/2 of Aging Water Supply — $63 billion

$38


billion

A BETTER INVESTMENT - 75% of Americans live within 3 miles of a toxic waste site. 65% of the cost to CLEAN THEM UP -  $36 billion

$24


billion

A BETTER INVESTMENT - 20% of an Electrical Grid that Doesn’t Shut Down in Every Storm -  $21 billion

$49


billion

A BETTER INVESTMENT - Double Student Aid — $45 billion

$11


billion

A BETTER INVESTMENT - Hire 100,000 Teachers & School Nurses — $12 billion

$140


billion

A BETTER INVESTMENT - Fix 80% of Our Streets — $136 billion

$11


billion

A BETTER INVESTMENT - Give 2 million Americans $5,000 each to Start Their Own Business - $10 billion

$42


billion

A BETTER INVESTMENT - 50% of the cost for Bridges that Don't Fall Down - $38 billion

$15


billion

A BETTER INVESTMENT - Dams That Don’t Collapse — $21 billion

$76


billion

A BETTER INVESTMENT - Levees That Don’t Fail — $80 billion

Yes, America, we can change this:


TAXPAYER-FUNDED
Millionaire
Assistance Line

1-800-CONGRESS


But if you want this Welfare for the Wealthy to ever stop, then It’s up to you – yes, YOU – to tell your elected officials to fix this. If We the People don't stand up, it won't change. And if it doesn't change, what’s to stop the Top 10% from taking even MORE of your money?

N O T H I N G

Call Congress to tell them to REPEAL unfair Loopholes, to END the sequester, and to expand services for the Bottom 90% (aka the MAJORITY of Americans)

Sources

There are two types of tax expenditures: individual and corporate. The source for most of the individual loopholes is "The Distribution of Major Tax Expenditures in the Individual Income Tax System" published by the Congressional Budget Office (May 2013). Official names for each of the individual loopholes are:

  • Make sure the wealthy have adequate health care: employer-sponsored health insurance
  • Help the wealthy retire in style: net pension contributions and earnings
  • Help buy homes for the poverty-stricken Top 10%: mortgage interest deduction
  • Help pay for Junior's inheritance: capital gains on assets transferred at death
  • Pay state and local taxes for the Top 10%: state and local taxes deduction
  • Pay the rich to get even richer: preferential tax rates on capital gains and dividends

The source for "help the rich live even wealthier lives of luxury" is a combination of three tax proposals in President Obama's 2014 White House Budget. These are listed in the "Rebalance the Tax Code" section beginning on page 17:

  • Tax carried (profits) interests as ordinary income, which will raise $1.6 billion a year ($16 billion over 10 years)
  • Prohibit individuals from accumulating over $3 million in tax-preferred retirement accounts, raising $900 million a year ($9 billion over 10 years)
  • Return estate tax to 2009 parameters and close estate tax loopholes, raising $7.9 billion a year ($79 billion over 10 years)

Corporate loopholes are from "Corporate Tax Expenditures: Information on Estimated Revenue Losses and Related Federal Spending Programs" published by the Government Accountability Office (March 2013). These are:

  • Pay companies to stop paying Uncle Sam: deferral of income from controlled foreign corporations
  • Help mega-companies buy new equipment: accelerated depreciation of machinery and equipment

I've included three corporate loophole proposals from the President's budget.

  • Eliminate fossil fuel tax preferences, which will raise $4.4 billion a year
  • Reform the tax treatment of derivatives, raising $1.9 billion a year
  • Eliminate special depreciation rules for corporate purchases of aircraft, raising $800 million a year
  • Establish financial crisis responsibility fee, raising $5.9 billion a year

The source for "companies that pay their CEO's more than $1 million a year" is "Executive-Pay Tax Break Saved Fortune 500 Corporations $27 Billion Over the Past Three Years" published by the Citizens for Tax Justice (April 2013).

Infrastructure costs are from "America's Infrastructure Report Card" by the American Society of Civil Engineers. For more nformation on all tax loopholes, see Chapter 16 - Tax Expenditures in the Analytical Perspectives of the federal budget published by the White House.

Methodology

This is a website created by a layperson for other laypeople. I'm not an economist — I'm just a regular person like you. There are no complicated statistical models or fancy econometrics here. It's just plain, simple math.

Many taxpayers use the mortgage interest deduction or receive tax benefits for retirement accounts. However, only amounts that go to the Top 10% are included.

The CBO's breakdown of who receives the most benefit from tax expenditures led me to the concept of the Bottom 90%. To get this, I multiplied the number of taxpayers (approximately 143 million in 2010) by 0.9 to get the number of taxpayers in the Bottom 90% (129 million). I then took each amount given to the Top 10% and divided that by 129 million. This gave the amount per Bottom 90% taxpayer that the government would have been able to provide in services, if Congress hadn't decided that Americans didn't need things like good roads or working bridges and dams.

If this were a great investment for them, then the economy would be doing great for the Bottom 90%. Instead, shrinking wages, shrinking benefits at work, and shrinking government services for the Bottom 90% — aka, the majority of Americans — are constantly being pitted against rising food, housing and transportation costs.

Bailout Welfare King Lloyd Blankfein (CEO of Goldman Sachs) says that "entitlements" for the Bottom 90% should be cut. "You’re going to have to undoubtedly do something to lower people’s expectations — the entitlements and what people think that they’re going to get, because ... they’re not going to get it." He says "we can’t afford them". It's time to let him know that the "entitlements" that the Bottom 90% really can't afford are the loopholes that go to the very top. It's time to let the Top 10% pay their own way — just like the Bottom 90% do.

About Us

Michelle Morton is a graphic designer with an extensive background in information graphics, the art of making complicated concepts understandable. She has over 10 years experience in interactive, multimedia, motion graphics and print design. She specializes in educational graphics in a variety of formats, and is available for consultation at michelle@needybillionaires.com.

The West LA Democratic Club is the official Democratic club for this large region. Our organization meets monthly to plan, organize and discuss Democratic politics. We are a grassroots force behind political campaigns and initiatives. Our members include everyone from local citizens to members of Congress and local city government.

You have 2 Senators and 1 Representative in the House. Clicking "Call Congress" will take you to the website of the House of Representatives. At the top is a search box where you can type in your zip code to "Find Your Representative". The website for the Senate is www.Senate.gov.