“Truth or Dare” Budget Asks for Legislators!

(https://www.youtube.com/c/PatrioticMillionaires, https://www.instagram.com/p/DOq5OybDzMj/)

(Indivisible) “Federal government funding runs out on September 30—and Republicans need Democratic votes to clear the filibuster and avoid a government shutdown. Democrats have a strong hand to play. They must use it to deny Donald Trump the blank check Republicans want to hand him!

But in the last big funding fight, Chuck Schumer and a handful of other Dems surrendered—rolling over and letting Trump weaponize federal funds to rob our services, militarize our cities, and terrorize our communities. That cannot happen again.”

BTW, Hundreds of federal employees are even risking their jobs to ask them to take action.

Action #1 – Call Your Congressmember!

Minimum script: Hi, I’m calling from [zip code] and I want [Congressman/woman _____] to stand up for us middle and working class constituents in the upcoming funding fight. We are tired of the greed, corruption and cruelty we are seeing. These are the minimums we all want: (Ask the staffer – “Are you ready to take down a short list?)

Undo the cuts healthcare, including Medicaid and ACA tax credits.
Stop the illegal impoundments of funding by the White House.
Undo the cuts to nutrition programs. And demand the return of the annual hunger report so we can be sure that our community members aren’t starving in the richest country in the world.

Then I want [Congressman/woman_____] to endorse H.R.5336 – Equal Tax Act and H.R.5106 – Restore Trust in Congress Act! After that, they should be daring their GOP colleagues to do so too. Voters from all parties are furious that billionaires are getting tax breaks and legislators are playing the stock market, while the rest of us are trying to afford groceries and wondering if we can afford a medical or dental checkup.

What are our OUR congressmembers doing?
- H.R.5336 – Equal Tax Act cosponsors: Hey wait! Where is Congressmembers Carbajal and Brownley? Get them to sign on now!
- H.R.5106 – Restore Trust in Congress Act cosponsors: Again, where are Congressmembers Carbajal and Brownley? Get them to sign on now!
CONTACTS:
- Rep. Julia Brownley: email, (CA-26): DC (202) 225-5811, Oxnard (805) 379-1779, T.O. (805) 379-1779
- or Rep. Salud Carbajal: email.(CA-24): DC (202) 225-3601, SB & Ventura: (805) 730-1710 SLO (805) 546-8348
- Who is my senators?: https://www.usa.gov/elected-officials

Action #2 – Call Your Senators!

Minimum script: I’m calling from [zip code] and I want [Senator _____] to stand up for us middle and working class constituents in the upcoming funding fight.We are tired of the greed, corruption and cruelty we are seeing. These are the minimums we all want:(Ask the staffer – “Are you ready to take down a short list?)

Undo the cuts to healthcare, including the ACA tax credits.
Stop the illegal impoundments of funding by the White House.
Undo the cuts to nutrition programs. And demand the return of the annual hunger report so we can be sure that our community members aren’t starving in the richest country in the world.

Then I want [Senator____] to endorse the S.2845 – Billionaires Income Tax Act and sponsor a Senate version of the H.R.5106 – Restore Trust in Congress Act and then dare your GOP colleagues to do so too. Voters from all parties are furious that billionaires are getting tax breaks and legislators are playing the stock market, while the rest of us are trying to afford groceries and wondering if we can afford a medical or dental checkup.

What are our OUR senators doing?
- S.2845 Billionaires Income Tax cosponsors: Hey, wait! Where is Sens. Padilla and Schiff? We’re watching you guys!
CONTACTS:
Senator Adam Schiff: email, DC (202) 224-3121, LA (310) 914-7300, SF (415) 393-0707, SD (619) 231-9712, Fresno (559) 485-7430
and Senator Padilla: email, DC (202) 224-3553, LA (310) 231-4494, SAC (916) 448-2787, Fresno (559) 497-5109, SF (415) 981-9369, SD (619) 239-3884
Who are my senator?s: https://www.usa.gov/elected-officials

Deeper Dive

This is 6 years old, but the words the GOP and their mouthpieces use to protect their wealthy donors are still the same.

Note before we start:

The GOP will try to convince us that Trump’s Big Bad Bill helped everyone. (gov.ca.gov) ‘Starting in 2029, those making $30,000 a year or less would see a tax increase, while the top 0.1 percent would get a $309,000 tax cut, on average – an annual tax break that is more than three times what the typical American household earns in an entire year.” Oh, and the “no taxes on tips” program that Trump keeps raving about? “Many workers will see little to no benefit. The program for tipped workers is temporary, expiring in 2028, meanwhile the tax cut for the ultra-wealthy is permanent.” More info: (Fightinequality.org) (democrats-budget.house.gov)
They will try to scare us with the myth that making the rich pay their fair share in taxes will cripple the economy. (Ise.ac.uk) “In research first published as a working paper in 2020, David Hope and Julian Limberg, of LSE’s International Inequalities Institute and King’s College London, analysed the economic effects of major tax cuts for the rich across five decades in 18 wealthy nations. Their conclusion: the rich got richer and there was no meaningful effect on unemployment or economic growth.”
Truth – Lowering taxes on the rich make them more greedy. (Ise.ac.uk) “Our results align pretty closely with some work from Thomas Piketty, that would suggest that what happens if you cut taxes on the rich is that they then bargain more aggressively for their own compensation at the direct expense of workers lower down the income distribution. So, the story of the paper then is really to do with rent-seeking among CEOs and top executives – and that increasing when you have lower taxes on the rich. Rent-seeking is the effort to increase one’s share of existing wealth without creating new wealth – rather like a greedy child demanding a bigger slice of the pie so that there’s less left on the plate for everyone else.” More info: (cbpp.org)

“The Equal Tax Act” – Now in the House

(This video is from an investment company, but it’s a great tutorial on the differences between earned and investment income.)

Its actual name is H.R.5336 – To amend the Internal Revenue Code of 1986 to equalize treatment of capital gains and earned income.

“The Equal Tax Act would ensure that millionaires and billionaires, who earn most of their money passively through investments, pay the same tax rates as newspaper reporters, dental hygienists, and auto mechanics. Remember what we said yesterday: every dollar that we make through our investments is worth more than every dollar most Americans make at their jobs because, as it’s currently written, the federal tax code taxes ordinary labor income at a higher rate than capital income.

The legislation would also close a number of loopholes that allow the wealthy to avoid paying what they owe the country in taxes. This includes the stepped-up basis, which, if you remember, gives wealthy inheritor families the opportunity to avoid tax completely on capital income.

In full, the Equal Tax Act does the following:

Limits the lower preferential tax rate for long-term capital gains and dividends to incomes under $1 million. The bill maintains the preferred rate for working people who may have money in a 401(k) or the like. The higher tax will only apply to the first dollar over $1 million.
Ends the stepped-up basis loophole and disrupts the “buy, borrow, die” strategy used by the wealthy to avoid taxation by treating capital gains as realized at the time of gift or death, with exclusion allowances of up to $1 million in gains.
Enacts a lifetime limit of $1 million on the use of like-kind exchanges on real estate gains.
Limits the pass-through deduction to incomes under $1 million.
Offers very generous protections for family farms and small businesses.”

(Read the whole article here)

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“The Billionaires Income Tax” – Now in the Senate

“Its actual name is “S2845 – A bill to amend the Internal Revenue Code of 1986 to eliminate tax loopholes that allow billionaires to defer tax indefinitely through planning strategies such as “buy, borrow, die”, to modify over 30 tax provisions so that billionaires are required to pay taxes annually, and for other purposes.”

“The Billionaires Income Tax would require the FEWER THAN 1,000 households IN AMERICA with annual incomes over $100 million or total assets over $1 billion for three consecutive years to pay a minimum 23.8% tax rate on all of their income, including their unrealized capital gains. It also includes strong enforcement provisions and stipulations to prevent billionaires from dodging taxes through using things like shell companies.

While the legislation doesn’t go as far as it should, it’s still a humongous step in the right direction. Our Senior Vice President for Tax Policy, Bob Lord, crunched some numbers on Jeff Bezos’ wealth to demonstrate just how much of a difference a bill like the Billionaires Income Tax could make in arresting America’s extreme growth in inequality. Jeff Bezos currently owns about $200 billion in Amazon stock. If he decided to sell all of his shares right now, under our current tax code, he’d face a tax bill of roughly $47.6 billion and be left with $152.4 billion. But if something like the Billionaires Income Tax had been in place since 1994 when he founded Amazon, and Bezos had been required to pay income tax every year on his unrealized gains, he’d have less than half that much today. Put another way, if Bezos paid income tax every year on his Amazon gains at a rate of only 5%, and sold just enough stock to pay the tax each year, his wealth would be lower than it would be today if he sold his remaining Amazon shares and paid a 23.8% tax on his gains.

A one-page summary of the Billionaires Income Tax can be found here.
A section-by-section summary of the Billionaires Income Tax can be found here.
Legislative text can be found here.
The Billionaires Income Tax is also endorsed by over 100 supporting organizations. A letter of endorsement with the full list of supporting organizations can be found here.”

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“Restore Trust in Congress Act” – Now in the House

H.R.5106 – Restore Trust in Congress Act

“The Restore Trust in Congress Act will prohibit Members of Congress, their spouses, dependent children, and trustees from owning, buying, or selling individual stocks, securities, commodities, futures, and other comparable assets.

The Restore Trust in Congress Act was introduced with 16 original cosponsors, eight from each party: Rep. Chip Roy (R-TX-21), Rep. Seth Magaziner (D-RI-02), Rep. Tim Burchett (R-TN-02), Rep. Pramila Jayapal (D-WA-07), Rep. Brian Fitzpatrick (R-PA-01), Rep. Alexandria Ocasio-Cortez (D-NY-14), Rep. Anna Paulina Luna (R-FL-13), Rep. Raja Krishnamoorthi (D-IL-08), Rep. Scott Perry (R-PA-10), Rep. Dave Min (D-CA-47), Rep. Zach Nunn (R-IA-03), Rep. Joe Neguse (D-CO-02), Rep. Michael Cloud (R-TX-27), Rep. Mike Levin (D-CA-49), Rep. Ralph Norman (R-SC-05), and Rep. Josh Riley (D-NY-19).

The legislation is a reconciliation of several existing proposals to ban Members of Congress from trading stocks into one single measure, including Magaziner’s TRUST in Congress Act, introduced earlier this year.

“We must take a strong stand against corruption and end stock trading by members of Congress once and for all,” said Rep. Seth Magaziner. “I have made banning Congressional stock trading a priority through my time in the House, and this bipartisan bill is our best chance at finally getting it done.”

“It’s far past time to ban Members of Congress from day trading stocks, and for the first time, a bipartisan coalition is standing together behind a united proposal to do just that. The Restore Trust in Congress Act ensures that members of Congress will no longer be able to put the stock market first in their official decisions. This bill strikes a balance between being easy to comply with, but without tons of loopholes for Members to continue trading while on the job. We must vote on this bill and put this conflict of interest to bed for once and for all. I look forward to seeing the Restore Trust in Congress Act move through the legislative process,” said Rep. Chip Roy.

“We are governing in a moment when public trust is at historical lows. Only two in ten Americans trust the government to do what is right for them and they are constantly seeing their elected officials selling them out to the highest bidder. They see the people elected to represent them instead making decisions to increase their own personal wealth. Finally, we are putting the American people first with this bipartisan legislation, which will ban stock trading for Members of Congress and set a new standard of integrity,” said Rep. Pramila Jayapal.

“Ending congressional stock trading has been one of my top priorities every Congress, because it speaks to something bigger than politics: trust. A bipartisan coalition of this magnitude sends a clear message to the American people: we hear you, and we’re taking action to ensure no Member of Congress uses public office for personal gain once and for all. If you’re in Congress, you serve the public interest—not your portfolio. We owe the American people nothing less, and we won’t stop fighting until this bill becomes law,” said Rep. Brian Fitzpatrick.”

You can view or download photos from the press conference here.
You can view a full video recording of the press conference here.
The full text of the legislation can be found here.

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Federal workers urge Democrats to stand up to White House

(Axios) Hundreds of federal workers across 60 agencies and departments are urging Congress to rein in the White House even if it means shutting down the government, in a letter sent Thursday afternoon.

Why it matters: It’s the broadest protest yet to emerge from inside the civil service — a sign of widespread discontent, anger and worry over the Trump administration’s cuts to research, spending and the workforce.

A shutdown would mean that many of these folks would go without pay, and those using their names are risking their jobs.
The letter follows similar ones from inside specific agencies, including from employees at the EPA, NIH, NASA and FEMA. In two cases, workers were fired and suspended for speaking up.

Between the lines: Even while writing that these issues are beyond politics, the letter’s first demand is to restore subsidies for Obamacare.

That Democratic priority appears disconnected from preventing the White House overreach they’re broadly opposing.
Organizers say the demand is about protecting public health, and they’re calling on both parties to take action.
The funding fight gives “Democratic members a rare moment of leverage,” Jenna Norton, a program officer at the National Institutes of Health who helped organize the letter, tells Axios.

Zoom in: Employees are asking lawmakers for three broader actions ahead of the Sept. 30 deadline to fund the government:

Restore research and funding where cuts have put public health and safety at risk.
Stop illegal impoundments, in which the White House refuses to spend money appropriated by Congress.
Reinstate employees who have been fired without cause and restore federal workers’ union rights.

The other side: The administration argues that its changes make the government more efficient.

What they’re saying: “Every member of Congress should be clear-eyed: ceding more of Congress’s power to avoid a shutdown will only worsen the damage, embolden authoritarianism, and cost the country more in the long run,” the letter says.

“Do not repeat March’s mistake, when a bad CR [continuing resolution] paved the way for mass firings across our agencies, gutted science, slashed health care access, and emboldened further attacks.”
“We do not want a shutdown, but we will accept a temporary shutdown to preserve our government on behalf of the American people.”

The big picture: An estimated 200,000 federal workers have been fired or forced out since January — about 10% of the workforce — and another 100,000 are expected to go before the year’s end.

Funding has been cut or delayed for health and science research — including dismantling money for cancer research, as the New York Times recently reported.
The president has fired agency heads, previously considered independent from such political interference.

Where it stands: Organizers inside the agencies started collecting signatures Saturday and by Thursday morning had 832, including more than 500 from current employees. Most signed anonymously, but 138 used their names.

“Many have signed anonymously because we no longer have confidence our legal rights as civil servants will be upheld,” they write, identifying themselves as those who “who respond to natural disasters, protect our food and water supply, deliver new cures, keep people healthy.”

Signers hail from an alphabet soup of agencies: Homeland Security, ICE and the Department of Defense, according to NIH’s Norton.