Is it just me? Or are others asking the same existential questions? RYFKM? Tax breaks for the rich? Tax increases for Oregon’s workers, educators, firefighters, cops? Who benefits? Uncle Phil? What programs get cut with a trillion dollars less in taxes? Let me guess.
FROM SEN. JEFF MERKLEY Oregonians, you better watch your wallets: The biggest bank heist in American history is underway, and you may be among the victims. House Republicans just passed a tax bill that they are marketing as a tax cut for the middle class. But in reality, it raises taxes on many
by Chuck Sheketoff
Often I am asked, “What can we do to address income inequality?”
There are a number of good ideas for confronting income inequality, which now stands at historic highs.
In my view the first thing to do is to “do no harm.” Don’t enact policies that will exacerbate the problem. This is particularly true in the area of tax policy, where decades of tax cuts and subsidies favoring the well-off have contributed significantly to rising income inequality.
In every Oregon legislative session, lawmakers from both sides of the aisle bring forth proposals to cut taxes for the wealthy outright or provide some new tax subsidy for the rich.
For example, a seemingly perennial effort — fortunately rebuffed thus far — is to give favored tax status to capital gains income. Capital gains income is income derived from the profitable sale of stocks, bonds, real estate and other such capital assets.
A cut in the income tax on capital gains would not just be a tax cut for the rich; it would be a tax cut for the very rich. Indeed, the wealthiest 1 out of every 1000 Oregonians (the one-tenth of the wealthiest 1 percent) reap about half of all capital gains income.
So what can you do to help confront income inequality in Oregon?
With candidates holding fundraising and campaign recruitment meetings as the fall election season approaches, it’s a good time to engage them. Ask candidates whether they will pledge not to exacerbate inequality. Ask them to take the income inequality oath to do no harm. Ask them to promise not to cut taxes on the already well-off, be it by cutting the income tax on capital gains or any other means.
Bring this capital gains infographic (JPG; a PDF version is here) to meetings with candidates and pass it on to your friends and neighbors via email and social media. Ask them to join you in calling on candidates to take the income inequality oath to do no harm.
This post was originally published on www.blueoregon.com on July 31, 2014. The original post can be found at http://www.blueoregon.com/2014/07/income-inequality-oath-first-do-no-harm/. – See more at: http://www.ocpp.org/2014/07/31/blog201408-income-inequality-oath-first-do-no-harm/#sthash.DGJpisUW.dpuf
Same-sex couples married in jurisdictions that recognize their right to wed will be considered married for federal tax purposes regardless of where they currently live following a ruling announced Thursday by the Treasury Department and Internal Revenue Service.
According to the Treasury Department, the ruling applies to all federal tax purposes that take marriage status into account, including income and gift and estate taxes, filing status, claiming personal and dependency exemptions, taking the standard deduction, employee benefits, contributing to an IRA and claiming the earned income tax credit or child tax credit.
“Today’s ruling provides certainty and clear, coherent tax filing guidance for all legally married same-sex couples nationwide. It provides access to benefits, responsibilities and protections under federal tax law that all Americans deserve,” said Treasury Secretary Jack Lew in a statement. “This ruling also assures legally married same-sex couples that they can move freely throughout the country knowing that their federal filing status will not change.”
The ruling applies to any same-sex marriage legally entered into one of the 50 states, the District of Columbia, a U.S. territory, or a foreign country. It does not apply to registered domestic partnerships, civil unions or similar formal relationships recognized under state law. According to Evan Wolfson of Freedom to Marry, that fact in particular “highlights the need for an America where everyone can marry the person they love in any state, and have that marriage respected at all levels of government.”
With the statute of limitations for filing a refund claim set at three years from the date the return was filed and two years from the date the tax was paid, the Treasury Department says same-sex couples can still file refund claims for tax years 2010, 2011 and 2012. Moreover, some taxpayers may be able to file refund claims earlier than that depending on special circumstances, such as whether an agreement was signed with the IRS to keep the statute of limitations open.
A release from the Treasury Department states, “employees who purchased same-sex spouse health insurance coverage from their employers on an after-tax basis may treat the amounts paid for that coverage as pre-tax and excludable from income.”
The ruling comes just over two months after the Supreme Court struck down Section 3 of the Defense of Marriage Act defining marriage as between a man and a woman. Edie Windsor, the 83-year-old lesbian widow at the center of that case, sued the federal government to recoup about $363,000, the federal estate tax she was forced to pay on her “inheritance” following the death of her wife in 2009. Prior to today’s ruling, lawfully married same-sex couples were forced to declare themselves “unmarried” when filing their federal tax returns.
“With today’s ruling, committed and loving gay and lesbian married couples will now be treated equally under our nation’s federal tax laws, regardless of what state they call home,” Human Rights Campaign President Chad Griffin said in a statement. “These families finally have access to crucial tax benefits and protections previously denied to them under the discriminatory Defense of Marriage Act.”
The ruling is the latest, and perhaps broadest, implementation of the DOMA ruling by the federal government to date. Earlier today, the Department of Health and Human Services issued a memo clarifying that the beneficiaries of private Medicare plans have access to equal coverage when it comes to care in a nursing home where their legally-recognized same-sex spouse lives, no matter where they live.
“We urge all federal agencies to the greatest degree possible to join the Treasury Department and the IRS in recognizing the legal marriages of all same-sex couples,” Griffin added. “No family should have to worry about losing important federal rights and benefits, simply because they live in a state that doesn’t recognize them as equal under the law.”
[Photo: Jack Lew. Credit: U.S. Treasury Department photo.]