“It’s not too much to ask that the richest people in America wait to receive this tax windfall so that our country can deal responsibly with the economic and national security crises we face today.  It’s time to put the brakes on the tax cut for the rich.  There’s no reason to allow tax cuts that disproportionately benefit the wealthy to take effect until we put first things first,” Schakowsky said.

“The tax cut has left us with no cushion to deal with our economic or national security crises.  In the last six months, we’ve had both,” Schakowsky added, pointing to Congressional Budget Office figures which suggest that the budget surplus is expected to turn into a deficit.   

The First Things First Act would provide more than $340 billion over 10 years by reinstating the top marginal tax rate back to 39.6 % beginning January 1, 2002, which affects the rates of those with income greater than $400,000; freezing the tax rates for the current 30.5% and 35.5% brackets, which affects the rates on income above $90,000 for a single taxpayer and $150,000 for joint filers; and stopping total elimination of the estate tax while allowing small family owned businesses and farms an immediate exemption of up to $4 million.  

The bill requires that before any changes in the upper marginal rates or estate tax are allowed to go back into effect, the following needs must be met:  

1. Adequate responses to the needs created by the September 11, 2001 terrorist attacks on the United States, including impacts on workers.
2. Extend solvency of the Social Security and Medicare Trust Funds.
3. Provide a comprehensive prescription drug benefit under Medicare.
4. Ensure federal funding of school modernization and the hiring of 100,000 teachers.
5. Reduce the number of people who face worst case housing needs.

“During this time of economic uncertainty, disappearing budget surpluses because of the reckless tax cut, and national tragedy, it is absurd to reward millionaires while Social Security and Medicare are being threatened, unemployment is on the rise, and the price of prescription drugs is spiraling out of control,” Schakowsky said.  

 “As we begin the process of  bolstering our national security, workers affected by the tragedies of September 11, seniors still waiting for a prescription drug benefit, and families unable to afford housing and quality education for their children are demanding action from their government.  And we can begin by putting their needs, and the needs of the nation, ahead of the interests of the wealthy,” Schakowsky added.

Schakowsky pointed to a Washington Post poll conducted from September 25 – 27 which found that while Americans are concerned about terrorism, 73% still favor action by Congress and the President to provide prescription drugs for seniors and 63% support education reform this year.  She also added that a White House economic stimulus package that includes further tax breaks to the rich, such as a Capital Gains cut, would do nothing to help the majority of those affected by the tragedy and would actually threaten long term economic prosperity, and fail to address problems facing millions of Americans.

Schakowsky, who is a member of the House National Security Subcommittee and was recently appointed to the Homeland Security Task Force of the Democratic Caucus, pointed out that Congress allocated an unexpected $55 billion to deal with the recent tragedy and to bolster national security, thus adding additional demands on the budget.  She added that more funds will be allocated to help workers who have lost their jobs as a result of the attack, to implement heightened security measures, and to assist law enforcement to bring to justice those who are responsible.

“Just as critical are the 5.4 million families with urgent housing needs, the 13 million seniors and people with disabilities without any prescription drug coverage, and the students who are now learning in overcrowded, crumbling schools.  That is why the First Things First Act is a vital first step in making the investments that will keep our nation strong,” Schakowsky said.

The First Things First Act of 2001 is supported by a broad coalition of senior, housing, education, airline and emergency response personnel, disability, workers’ rights and consumer organizations, including AFSCME, Association of Flight Attendants, Illinois Council of Senior Citizens, Illinois Federation of Teachers, Citizen Action -- Illinois, US Action and Access Living. 

The legislation is currently cosponsored by U.S. Representatives Barbara Lee (D-CA), Bernie Sanders (I-VT), John LaFalce (D-NY), Lynn Woolsey (D-CA), Henry Waxman (D-CA), Hilda Solis (D-CA), Danny Davis (D-IL), Jesse Jackson, Jr. (D-IL), Bobby Rush (D-IL), Major Owens (D-NY), Maurice Hinchey (D-NY), Dennis Kucinich (D-OH), and Stephanie Tubbs Jones (D-OH).