Deadline is Monday, May 25, COB

May 25, 2020

Dear Senators and Representatives [letters will be addressed to Members of Congress in your state]:
 
We write to strongly endorse the Millionaires Surtax legislation that has been introduced in Congress and urge you to cosponsor it. The legislation, S. 2809 and H.R. 5043, has been introduced in the U.S. Senate by Senators Chris Van Hollen (D-MD) and Sherrod Brown (D-OH) and in the House by Representatives Don Beyer (D-VA), Jimmy Panetta (D-CA) and Jan Schakowsky (D-IL). It has been endorsed by 72 national organizations.

The Millionaires Surtax would take a major step towards the kind of comprehensive and progressive tax reform America needs to narrow the nation’s troubling income and wealth gaps and raise significant revenue that can help create an economy that works for all of us, not just the wealthy few.

The legislation will raise about $635 billion over the next 10 years, according to the Tax Policy Center (TPC), money that can be used to improve the lives of working families and children. In addition to putting our nation on a sounder financial footing, this revenue could protect and strengthen Social Security, Medicare, and Medicaid and make investments in healthcare, education,  infrastructure, affordable childcare and housing, nutrition assistance and renewable energy.

The Millionaires Surtax would add a 10-percentage point tax on income above $2 million for married couples filing jointly and $1 million for individual tax filers. The surtax would be added to the current top tax rates paid by the wealthy. It would apply to all forms of income: wages and salaries and income from wealth in the form of capital gains and dividends, which are taxed at a much lower rate than wage income. So, a rich CEO on Wall Street would pay a 10- percentage point higher tax rate both on his sky-high salary and on his income from a bulging stock portfolio.  

The Millionaires Surtax would be strictly focused on the very wealthy. According to the TPC analysis, only 0.2% of taxpayers would owe the surtax, or just 329,000 tax filers in 2020. The remaining 99.8% of tax filers would not pay an extra dime.    

The surtax is strongly favored by the public. An October 2019 poll by Hart Research Associates of likely 2020 voters found the surtax was favored by 73% of 1,001 likely 2020 voters polled, with just 27% opposed. Independents supported the surtax at 76% and Republicans at 53%.

The surtax is a relatively moderate proposal that can raise substantial revenue. It will be easy to implement, enforce and explain to the public. That’s because it is added onto the federal tax system’s existing rate structure. It does not require a major overhaul of the tax system or the creation of a major new tax. The surtax is difficult for the very wealthy to avoid since it applies equally to all forms of income.

Congress has some history with surtax legislation. In 2009, the House of Representatives voted to include a 5.4 percent surtax on married couples making at least $1 million (and singles making $500,000), as a financing mechanism in the Affordable Care Act. In 2011, the Senate proposed a 5.6 percent surtax above $1 million for married couples  as part of a stimulus bill.

Again, we urge you to cosponsor the Millionaires Surtax legislation and look forward to working with you to make it law.

Sincerely,
List in formation

California:
American Federation of Teachers 2121
Americans for Democratic Action, Southern California Chapter
California Labor Federation
Children's Defense Fund - CA
Courage California
Indivisible 49

Colorado:
Colorado Cross-Disability Coalition
Colorado Education Association
Colorado Fiscal Institute
ProgressNow Colorado
SEIU Colorado

Connecticut:
Connecticut Citizen Action Group (CCAG)
Fair Share Connecticut

Florida:
Central Florida Jobs with Justice
CWA Local 3102
Organize Florida

Illinois:
A Just Harvest
Citizen Action - Illinois
CWA Local 4250/CTU 16
Housing Action Illinois
Indivisible Chicago-South Side
Northeastern Illinois Americans for Democratic Action
ONE Northside

Massachusetts:
Berkshire County Branch NAACP
Cape Cod Democratic Socialists of America
Clinton Church Restoration Project
Dorchester People for Peace
Indivisible Pittsfield
Lawrence CommunityWorks
Mass Law Reform Institute
Massachusetts Communities Action Network
Massachusetts Jobs with Justice
Massachusetts Peace Action
PHENOM (Public Higher Education Network of Massachusetts)
The Midas Collaborative

Maine:
Mainers for Accountable Leadership

Michigan:
American Federation of Teachers - Michigan
Michigan League for Public Policy
Michigan Unitarian Universalist Social Justice Network (MUUSJN)

Montana:
Montana AFL-CIO

Nevada:
Make the Road Nevada
Nevada State Education Association
Progressive Leadership Alliance of Nevada
SEIU Nevada Local 1107

New York:
CWA Local 1106
CWA Local 1120
CWA Local 1141
Long Island Progressive Coalition
Strong Economy For All Coalition
VOCAL-NY

Oregon:
Tax Fairness Oregon

Pennsylvania:
Just Harvest
Keystone Research Center
Pennsylvania Budget and Policy Center
Pennsylvania Council of Churches
Philly Neighborhood Networks
The 99% Pennsylvania

Virginia:
Virginia Organizing

Washington:
Church Council of Greater Seattle
Economic Opportunity Institute
Faith Action Network - Washington State
Fuse
OneAmerica
Peace and Justice Action League of Spokane
Refugee Connections Spokane
SEIU 775
Spokane Veterans For Peace Chapter #35
Washington Fair Trade Coalition
Washington Physicians for Social Responsibility
Washington State Budget & Policy Center
Western Washington Fellowship of Reconciliation

Wisconsin:
Citizen Action of Wisconsin