A bill was introduced in the House last week that would eliminate the federal income tax on the first $35,000 of all Americans' earnings. That means anyone earning $35K per year or less would pay no federal income tax, and those earning more than $35K would pay taxes only on the amount in excess.
The bill proposes to compensate for the loss in revenue by cutting $159 billion in supplemental war funding.
H.R. 5353, known as the War is Making You Poor Act, is sponsored by Florida congressman Alan Grayson (D-8th District). The bill is co-sponsored by Reps. John Conyers (D-MI), Walter Jones (R-NC), Dennis Kucinich (D-OH), Barbara Lee (D-CA), Ron Paul (R-TX) and Lynn Woolsey (D-CA).
In a speech on the House floor on May 20, Grayson stated that the bill would do three things. Firstly, it forces the Pentagon to pay for the wars out of the $549 billion already allocated in the defense budget. Secondly, it enables 90% of the savings from $159 billion in supplemental war spending to cover the cost of making the first $35K of every Americans' earnings ($70K for married couples) free from federal income tax. Thirdly, it ultimately reduces federal spending and the deficit because the remaining 10% would be applied to that, and rather than borrowing money to pay for the wars that have no financial return of investment, the money saved by taxpayers can be spent to help stimulate the economy.
Grayson also stated that the proposal will not affect the $549 billion already allocated to the Pentagon for defense in the 2011 budget, and that the total military spending of the U.S. is more than what the rest of the world combined spends on defense. You can view a clip of Grayson's speech here:
It may be unlikely that this bill will actually become law - House Speaker Nancy Pelosi (D-CA) has already declared her opposition to the bill. A House vote on this legislation, however, would force any legislator that votes against it into what can also be construed as a vote against lowering taxes, against reducing federal spending and against reducing the deficit. At the very least, it illustrates to Americans how much the wars cost in terms of their tax dollars.
Find out how to contact your representative in order to voice support or opposition to this and other bills here.
Comments
I like it, and I wish more people could hear about this. How much of every tax dollar is spent on the military? 40%? It's insane.
Start calling your Reps about this one - phone calls do make a difference. I don't know about you, but I sure could use a tax break and if that means helping bring an end to these wars, then that's an added bonus.
I believe that would be a great idea! Who couldn't use a tax break like that! Doubtful it would ever pass, but the idea may lead to other good ideas, at least one would hope so anyway
Good article and a great idea. REPUBLICANS?! Where are you? You should be supporting this, as it is about lower taxes and reigning in government spending. But wait, the lower taxes are for the lower/middle class and the cuts for government spending are aimed at the Pentagon, not schools or Medicare. So never mind.
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