It's Time for 'Plan A': 

Congressman Jim Gerlach Implored to Call on Boehner to Schedule Vote on Senate-passed Middle Class Tax Relief Bill That Will Head Off Impending Tax Hike on 98% of Americans & 97% of Small Businesses

With time running out for Congress to avert an automatic tax hike on all Americans on January 1, Republican House Speaker John Boehner chose to waste precious time playing politics, putting forward a bill to protect tax breaks for millionaires at the expense of the middle class that was so fatally flawed that he could not even rally enough support from fellow House Republicans.  As a result, late Thursday night, Republican Boehner reportedly pulled the so-called "Plan B" bill off the table.  The bill stood no chance of passage in the Senate, as it would give millionaires an average $50,000 tax break, while raising taxes by an average of $1,000 on 25 million working families with children and students. 

You Had Your Chance, Mr. Speaker, and Now It's Time for 'Plan A': The Action-Pennsylvania called on Congressman Jim Gerlach and his Pennsylvania GOP congressional colleagues to be strong independent voices for Pennsylvania families and demand that Speaker Boehner immediately hold a vote on a responsible alternative bill that already passed the U.S. Senate and that the President is ready to sign.  This bill would immediately cut taxes for the middle class and extend the Bush tax cuts on the wealthiest 2%, generating $400 billion more in revenue to help close our long-term budget gap and support critical investments that create and sustain jobs.

Mike Morrill of Keystone Progress, which is coordinating the efforts of The Action-Pennsylvania, said: "With a $2,200 tax hike set to hit middle class families on January 1^st, all Speaker Boehner has accomplished this week is to waste time and further fan the flames of economic uncertainty.   But one thing is absolutely certain: he and his party's insistence on protecting tax breaks for millionaires at all costs is hugely unpopular.  The American people will hold the GOP responsible if taxes to go up on the middle class next year."  

"It's time for Congressman Jim Gerlach to stand up and do what's right, for he'll certainly take the blame if he comes home to Pennsylvania while the economy drives off the fiscal cliff," Morrill continued. "Congressman Gerlach will need to answer to middle class families who will have $2,200 less to spend on groceries or on filling a prescription, to pay the rent or tuition. He also will need to answer to his constituents that lose their jobs due to less demand for goods and services."   

Even Congressman Gerlach's Republican colleague Governor Tom Corbett recognizes the pain Congress will cause when he said "The potential impact of going over the 'fiscal cliff,' on every state, is enormous." [Pittsburgh Tribune-Review, 12/12/12]. Corbett's Administration reported that the failure to avert the fiscal cliff will cost Pennsylvania $300 million, slashing services for pregnant women and young children, schools, and home heating assistance for seniors and others struggling to keep warm through the winter.

"Time is running out," Morrill added, "but Congressman Gerlach and his GOP colleagues in Pennsylvania still have a chance to save their constituents from economic hardship and themselves from political fallout.  They can forget 'Plan B' and simply pass 'Plan A,' a middle class tax relief bill that will extend tax cuts for 98% of Americans and 97% of small businesses. If Congressman Gerlach and his colleagues demand that Speaker Boehner call them back to work to pass that bill immediately, they can deliver for the people they serve, before it's too late."

Keystone Progress is one of over 150 national, state and local organizations part of The Action - a grassroots movement calling for the end of the Bush-era tax breaks for the richest 2 percent that have shortchanged critical investments that create and sustain jobs.  

PA House Republicans Pressured to Back Senate-Passed Bill That Continues Tax Relief for 98% of Americans and to Reject Boehner "Plan B" Bill That Gives Millionaires a Tax Break While Taxing Millions of Middle Class Working Families

PENNSYLVANIA- With taxes set to go up by $2,200 for average American families at the beginning of the year and the Republican Congressional leadership choosing to halt negotiations that could forge a solution, the community group Action-Pennsylvania called on U.S. Reps. Mike Kelly (R-PA-3), Mike Fitzpatrick (R-PA-8), Jim Gerlach (R-PA-6), Charlie Dent (R-PA-15), Patrick Meehan (R-PA-7), and Lou Barletta (R-PA-11) to choose the middle class over millionaires in two votes to be taken in the U.S. House today.

Votes are expected to take place in the U.S. House today on two contrasting tax bills: 1) a responsible bill already passed by the Senate that would immediately extend the Bush tax cuts for those with incomes under $250,000 for a couple and $200,000 for an individual; and 2) the so-called "Plan B" bill put forward by House Speaker John Boehner and the Republican House leadership, which would recklessly continue tax cuts for the wealthy - and in fact would give millionaires an average $50,000 tax break - while raising taxes by an average of $1,000 on 25 million working families with children and students. Compared to the Senate-passed middle-class tax cuts bill, "Plan B" would generate $400 billion less in revenue to close our long-term budget gap and make investments that create and sustain jobs.

Michael Morrill, Executive Director at Keystone Progress: "Pennsylvania's representatives in Congress - especially U.S. Reps. Mike Kelly (R-PA-3), Mike Fitzpatrick (R-PA-8), Jim Gerlach (R-PA-6), Charlie Dent (R-PA-15), Patrick Meehan (R-PA-7), and Lou Barletta (R-PA-11) - must confront some clear facts. They are defying those who sent them to Washington if they hold up middle tax relief to protect tax breaks for millionaires. And the public will hold them responsible if they allow taxes to go up on every American family." 

Morrill continued: "Failure to pass the Senate bill only brings us closer to an automatic tax hike costing the average middle class family $2,200 and to painful service cuts that will hurt Pennsylvania families and seniors. Even Governor Corbett and his team recognize this: they have projected that if a deal is not reached, Pennsylvania will take a hit of $300 million, slashing services for pregnant and young children, school students, and seniors who need assistance heating their homes.  Instead of wasting precious time on a useless vote to protect millionaires, these Congressmen have a golden opportunity to approve the Senate bill to immediately extend tax relief to 98% of the American people and 97% of small businesses." 

"'Plan B' is not a serious alternative," added Morrill. "Pennsylvanians have a simple message for their representatives: Don't ring in the New Year by dropping the ball on middle class tax relief. Vote NO on Plan B."

Keystone Progress is one of over 150 national, state and local organizations part of The Action - a grassroots movement calling for the end of the Bush-era tax breaks for the richest 2 percent that have shortchanged critical investments that create and sustain jobs.  

WASHINGTON, D.C. -- Americans for Tax Fairness, a campaign with more than 230 national, state, and local organizations united in support of a tax system that works for all Americans, released a statement today on U.S. House Speaker John Boehner's "Plan B," which is scheduled for a vote on Thursday. 

"Speaker's Boehner's Plan B stands for bogus. It fails three tests - It does not raise taxes on the richest 2 percent, it does not come close to raising enough revenue to reduce the deficit and rebuild the economy, and it would raise taxes by an average of $1,000 on 25 million working families with children and students," said Frank Clemente, campaign manager of Americans for Tax Fairness.

"Plan B is nothing more than a political ploy. It's time for the Speaker to stop playing political games and accept President's Obama tax plan that would raise $1.3 trillion by asking the richest 2 percent of Americans to pay their fair share."

Analysis of what Boehner's Plan B would do and would not do:

·       Raise taxes on the richest three tenths of one percent (0.3%), rather than raise taxes on the richest 2 percent - the latter is what the American people voted for in the last election and support by overwhelming numbers in public opinion polls. 

·       Raise $1 trillion less from wealthy Americans than Obama's last tax plan offer. This additional revenue is essential for serious deficit reduction, to prevent a gutting of critical programs that benefit the middle class, and to make new investments to rebuild the economy. Boehner's plan would raise $300 billion, according to White House estimates, whereas Obama's last offer was to raise $1.3 trillion from the richest 2 percent. 

·       Raise taxes on 25 million low- and middle-income Americans by an average of $1,000 each. According to White House estimates, Plan B does this by ending improvements made in tax credits and incentives passed in 2010 to the American Opportunity Tax Credit, which helps pay for college; the Child Tax Credit, which helps working families offset the costs of raising children; and the Earned Income Tax Credit, which encourages and rewards low-income families that work.    

·       Continue an estate tax giveaway that loses $120 billion over 10 years, compared with the Obama plan, and affects just 2 out of every 1,000 estates. Obama's estate tax plan would affect just 3 out of every 1,000 estates.

Click here to send this message to Congress:

Allowing taxes to go up an average of $2,200 per family of four would pose an additional hardship on middle-class families who have already suffered through the Great Recession and its aftermath. 

The fairest way to address the current fiscal situation and to promote economic growth and to protect middle-class families is to extend tax cuts for the middle class and allow cuts for the wealthiest two percent to expire.

Please support a deal that allows the Bush-era tax cuts to expire for the wealthiest 2% and extends tax cuts for those earning under $250,000.

Click here to send this message to Congress

The election is over and it's time to make it count. Grassroots power is not just for elections.

Congress has until December 31st to make a critical and historic choice. They can ask the richest 2% of Americans to pay their fair share, or they can put more money in wealthy pockets at the expense of the struggling middle class.

There is too much money and power in too few hands and the system is rigged to keep it that way. It's time to level the playing field. It's time to make things right.

The first step is telling Congress, loud and clear: Don't give more tax breaks to the people who need them least.

Yesterday was The Election. Today is The Action.

The Action is a grassroots movement that demands Congress end the Bush-era tax cuts for the richest 2%--those making more than $250,000 per year. The Action is for critical investments that create and sustain jobs.  Keystone Progress is leading The Action efforts in Pennsylvania because we believe this issue is crucial to our economy, our pocketbooks and the entire progressive agenda

It's time to join The Action.

There are many ways to get involved:

• Send a message to Congress.  Tell them to stand up for working families by ending the Bush-era tax cuts for the richest 2%.
• Join The Action.  Sign up for national alerts from The Action.
• Find local Actions.  There are events being planned all over the country, with dozens being planned across Pennsylvania.
• Become a local leader for The Action.  We have organizers in some congressional districts, but we need grassroots leaders to help us in every community.  Sign up by sending an email to our field director,  Anne Batchelder.
• Contribute.  We need money to win this campaign.  You know the other side will be well-funded, so please contribute $5, or whatever you can afford.

This is a unique opportunity to protect the middle class AND to build a unified progressive movement that can win on every issue we care about.  Please join The Action today and get as involved as you can.

There has been much talk about the so-called "Fiscal Cliff," but little discussion about how the issue would affect working families and the most vulnerable people in Pennsylvania.  Senior citizens, the disabled, and low-income families would be hardest hit if Congress does not come to an agreement on taxes and spending by the end of the year.

Some Mercer County residents delivered a turkey today to Rep. Mike Kelly's office in Greenville as a reminder of those who would be hardest hit if a deal is not reached that preserves the social safety net.  Inspired by the new movement called "The Action," they told Kelly's staff that they expect Kelly to represent the interests of working families in negotiations.

Kelly's staff agreed to arrange a meeting with members of Keystone Progress, but remained non-committal about how Kelly would vote.

Tom Joseph, Public News Service-PA

HARRISBURG, PA - Pundits and politicians are throwing around a lot of numbers these days on who is, or who isn't, paying taxes. One group aims to separate the facts from fiction. Chuck Marr, the director of federal tax policy for the Center on Budget and Policy Priorities, has co-authored a new report on the tax issue. He says one of the biggest misconceptions out there is that about half of Americans, 47 percent, do not pay taxes.

"We're talking here about federal income taxes. For working-class and middle-class people, payroll taxes that pay for Social Security and Medicare are actually taxes that they do pay, and in fact, most people pay more in payroll taxes than in income taxes."

Marr says the 47 percent and 57 percent figures cited lately regarding people who do not pay federal income taxes were taken from reports that looked at numbers during the recent recession, when people lost jobs, and were paying much less than in previous years.

"When a person's income falls during a recession, they pay less tax, and same with a business, and that allows them to help them get back on their feet. You wouldn't expect someone to pay the same amount of tax if they're making half the money that they used to make."

Prior to the recession, in 2007, the percentage of people not paying federal income tax was 40 percent, according to the report.

Marr says other taxes such as state, local and sales taxes are also a big part of the equation. According to the report, when considering all taxes, the bottom 20 percent of households pay an average of 16 to 17 percent of their incomes in taxes.

A recent report from the Keystone Research Center shows sixty-one percent of Pennsylvania taxpayers live in a ZIP Code where the average income is less than $75,000, but the average tax rate is higher than the ritzy neighborhoods of Santa Barbara, California; Fisher Island, Florida; or San Francisco.

The report, "Misconceptions and Realities about Who Pays Taxes," is at www.cbpp.org.

This is the first in a series of articles about how the Ryan/Romney budget affects Pennsylvania.  The research comes from our allies, as indicated in the links.

How the Ryan/Romney Budget Hurts Pennsylvania

From Nuns on the Bus

Head Start

Cuts $66.3 million out of Pennsylvania's Head Start budget over two years

Eliminates 9,754 Head Start preschool slots for Pennsylvania children over two years

Results in 3,530 lost jobs over two years

Special Education

Cuts more than $108 million out of special education funding for Pennsylvania

Affects nearly 73,000 special education students in Pennsylvania

Title I

Reduces educational services for 147,300 disadvantaged Pennsylvania students by 2014

Results in 1,530 job losses

Medicaid

1,620,000 fewer Pennsylvania seniors and children receive health care

Between 213,401 and 215,652 Pennsylvania jobs lost over five years, mostly in the private sector

Health insurance for small businesses and their employees

Ends tax credit that would help 131,780 Pennsylvania small business offer health insurance to their employees

Takes an average of $859 out of the pocket of the approximately 712,800 Pennsylvania small business employees who would be helped by the tax credit to their employers to purchase health insurance

 Medicare prescription drugs

Costs Pennsylvania seniors approximately $162,459,000 a year

Takes approximately $670 a year out of the pockets of 243,400 Pennsylvania seniors.

 Supplementary Nutrition/Food Stamps

3,611 fewer Pennsylvania jobs

159 million fewer meals for low-income Pennsylvania families

From our friends at Think Progress:

By ThinkProgress War Room

A Shocking Possibility

Our tax code is broken -- really broken. It's rigged for the rich and against the middle class.

How rigged? It's possible that Mitt Romney paid no federal taxes at all in 2009, which would explain why once again today he said he wouldn't release any tax returns from before 2010.

Let's take a closer look at how this shocking possibility could've happened.

Joshua Green from Bloomberg Businessweek recently talked to some private equity executives about what Romney could be hiding. He explains how Romney could've gotten away with paying nothing in 2009:

When the stock market collapsed in 2008, the wealthiest investors fared worse than everyone else. (See, for instance, this Merrill Lynch study.) The "ultra-rich" -- those with fortunes over $30 million -- fared worst of all, losing on average about 25 percent of their net worth. "There was really nowhere to hide as an investor in 2008," Merrill Lynch's president of global wealth management pointed out in 2009. "No region ended the year unscathed."

As a member of the ultra-rich, Romney probably wasn't spared major losses. And it's possible that he suffered a large enough capital loss that, carried forward and coupled with his various offshore tax havens, he wound up paying no U.S. federal taxes at all in 2009.

There's additional evidence for this theory in the one tax return we have seen -- the one from 2010 -- because it includes capital gains losses carried forward from the previous year. In other words, Romney lost enough (on paper at least) in 2009 to help lower his taxes in both 2009 and 2010.

Greg Sargent from the Washington Post talked to some tax experts who said it was a possibility that Romney paid nothing or next to nothing in 2009. One expert suggested that this is the "natural explanation" for Romney's refusal to come clean and release more tax returns:

Asked what the likelihood was that Romney paid substantially lower tax rates than that in previous years, Daniel Shaviro, a professor of taxation at New York University, said: "His extreme reluctance to release the returns makes you wonder -- it becomes the natural expanation."

Shaviro, who supports Obama but is a nonpartisan tax analyst, said the question would then be this: "Did he get there just by selling losing stocks, or did he get there with aggressive tax shelters?"

It is literally impossible to resolve these questions unless Mitt Romney releases more tax returns, which is exactly what Americans want him to do. A poll out todayshows that 56 percent of voters -- including 61 percent of independents -- believe Romney should release a full 12 years of tax returns. Separately, 56 percent of voters also agree that Romney should release more information about his shady foreign finances in tax havens like Switzerland and Bermuda.

And it's not just people on the left and in the middle that want to see more tax returns. At least 15 prominent Republicans have called on Romney to release more returns -- pronto.

IN ONE SENTENCE: We already know that the tax code is rigged for people like Mitt Romney - he paid a lower tax rate than millions of middle class workers in 2010 and now he needs to come clean with his tax returns so we can find out whether he got away with paying less or even nothing at all in 2009.