CTJ and the Fight for Tax Fairness

In 1984, President Ronald Reagan had an epiphany. His Treasury Secretary informed him that Reagan’s former employer, General Electric, and dozens of other major American corporations did not “pay a penny in taxes to the United States government.” In fact, the Treasury Secretary added, “your secretary paid more federal taxes last year than all of those giant companies put together.”

That information, not to mention the exact phrasing, came straight from Citizens for Tax Justice. Upon hearing it, Reagan ordered his Treasury Secretary to “go full steam ahead” with what became the Tax Reform Act of 1986. That law repudiated Reagan’s earlier loophole-crazed tax policies and swept away most of the tax-shelter schemes and loopholes that cluttered the tax code.

This is just one example of the impact of CTJ’s efforts to make taxes fairer for middle- and low-income Americans.

In the mid-1990s, CTJ demonstrated to lawmakers and the public that the tax cuts pushed by Newt Gingrich and his allies were both unaffordable and hugely tilted toward the rich.

During George W. Bush’s presidency, CTJ’s work showed that the Bush tax cuts were even more unfair and unaffordable. The New York Times called CTJ’s work “indispensable,” and Senator Kent Conrad (D-ND) told the Times: “I don’t know what we’d do without CTJ. The agencies of government that are supposed to provide this information don’t, and the only way we can get it is from CTJ.”

Now a majority in Congress is finally ready to acknowledge the truth about our tax system, which is again severely broken. CTJ, which was created in 1979 in the aftermath of California’s disastrous Proposition 13, is again receiving a receptive response from members of Congress who are ready to fight for tax fairness.

Of course, fight is the operative word, because defenders of the status quo have geared up to block reform, and they will win if we don't work hard.

This year, CTJ has provided lawmakers with information to help them make the right decisions on several issues that impact the lives of ordinary Americans, including:

• the economic recovery act and how it affects working families,
• the progressive tax provisions in President Obama's first budget and in Congress's budget resolution,
• the President's proposals to stop corporations from shifting their profits offshore,
• the federal tax on the estates of millionaires,
• progressive options to pay for health care reform, and how to separate myth from facts during the health care debate.

Citizens for Tax Justice will continue to be a voice ordinary Americans as Congress debates tax policy related to the economic downturn, the health care crisis, the budget deficits left behind by the previous administration, and the need for a fundamental reform of our tax system.

We know we're not alone in this fight. A broad coalition of faith-based organizations, advocacy groups, service providers, labor unions and think-tanks from all over the country have come together to urge Congress to enact progressive tax policies. Members of the U.S. House of Representatives and Senate recently complimented our work on these issues and called on us to continue to lead the charge towards tax fairness.

But the special interests can still win if Americans don't become engaged and make their voices heard. The stakes are high. We welcome your support in this fight, and we invite you to join our email list so that you can stay informed about these issues.