Group of wealthy Americans call for 'tax revolt'

WASHINGTON (AFP) - As millions of Americans approach a deadline for income taxes, a group of wealthy taxpayers is calling for revolt -- against the tax cuts of recent years that benefited them disproportionately.

The group called Responsible Wealth, claiming to represent members of the richest five percent of Americans, launched a new campaign this month to draw attention to what they claims is an ill-advised series of tax cuts engineered by the administration of President George W. Bush.

The tax cuts delivered 69 billion dollars for 2004 to the top tier of Americans, with annual incomes over 200,000 dollars.

But the campaign urges the wealthy, instead of simply handing back the tax cuts to the US Treasury, to pledge the money to organizations campaigning for fairer taxes.

"We're asking them to set it aside to support work to have more fair and more adequate taxation," said Bob Keener, spokesman for Responsible Wealth, a group that has also campaigned to prevent the elimination of the estate tax.

"So far we have about 65 people who have done it, but we are just starting the campaign."

Responsible Wealth created an online calculator that can be used by individuals to calculate their personal 2004 tax break. It also provides the names of "grassroots" organizations fighting for tax reforms such as the Fund for Tax Fairness.

The campaign comes just ahead of the April 15 annual deadline for Americans to complete their income tax returns.

"It's obscene that Washington is handing out tax breaks to millionaires with one hand and shredding the safety net with the other," said Marta Drury, a Responsible Wealth member.

"I want it to stop, so I'm calculating my 2004 tax cut and donating it to organizations fighting for responsible, fair and adequate taxes. I don't believe that people like me with incomes over 200,000 dollars need 69 billion dollars in tax cuts."

According to a study cited by Responsible Wealth, taxpayers who made more than one million dollars received an average federal income tax break of 123,592 dollars in 2004.

This compares to 383 dollars, the average tax break in 2004 for the two-thirds of taxpayers who make less than 50,000 dollars annually.

"The next time a politician says we can't afford to fund something you care about, ask yourself if 69 billion dollars per year would help," said Scott Klinger, co-director of Responsible Wealth.

The Bush administration engineered tax cuts worth 1.35 trillion dollars over 10 years in 2001 and another 350 billion dollars over 10 years in 2003. All of the tax cuts expire by the end of 2010. Some expire earlier, such as a dividend tax cut, which is due to evaporate at the end of 2008.

But some critics of the tax code from the other side say taxes remain too high.

"The current tax code is too high and far too complicated," said Chris Kinnan, spokesman for Freedom Works, a group dedicated to "lower taxes, less government and more economic freedom."

As for the Responsible Wealth movement, Kinnan argued, "Those individuals are more than free to contribute additional money to the treasury, but it's ridiculous to argue that this should be imposed on all taxpayers."

Kinnan said high tax rates originally designed for the wealthy now apply to many small businesses and middle-class families with two incomes.

"A lot of the problems in our tax code started out with the notion of 'let's soak the rich,' but this is now affecting a lot of the middle class."

The US budget deficit is projected to hit a record 427 billion dollars in fiscal 2005, but Kinnan said, "Our view is the deficit is the result of too much spending, not because taxes aren't high enough."