Local rabbis back end to Bush-era tax cuts
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Rabbi Charles Kroloff
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December 12, 2012
About 240 American rabbis, including 15 from New Jersey, have signed a letter supporting the White House’s proposal to end Bush-era tax cuts for those making above $250,000 a year.
The letter, addressed to lawmakers, is part of an initiative by Bend the Arc Jewish Action, a social justice organization devoted to domestic policy issues.
The group’s director, Hadar Susskind, said that rabbis from all branches of Judaism have signed the letter but most are Reform or Conservative.
“Ending the tax cuts for those who need them the least will bring in hundreds of billions of dollars over the next decade,” the letter reads. “Together with a careful examination of our government spending, one that is not based on once again taking the most from those who have least to spare, this money will enable the crafting of a moral budget, one that protects our social safety net, strengthens our public education system, and increases job growth.”
Rabbi Charles Kroloff, rabbi emeritus of Temple Emanu-El, the Reform synagogue in Westfield, signed the letter last week. The group was new to him but, he said, he respected Jewish Funds for Justice, which merged this past January with the Progressive Jewish Alliance to form Bend the Arc.
He noted that many wealthy people, starting with Warren Buffett and including people in his own community, support the proposal.
“I do see this is a Jewish theological issue,” he said. “We teach that the blessings of creation are gifts from God that we are loaned for a very limited time. We have an obligation to pass them on to the next generation — in a good way. I don’t see this as wealth redistribution; it’s about fairness and equity, and it is already understood that from those who are blessed with more wealth more is expected.
“We need to reform the tax code, starting with ending this tax cut for the wealthiest.”
Rabbi Joel Abraham of Temple Sholom, the Reform congregation in Scotch Plains, said he doesn’t believe legislators should act according to the beliefs of a religious group. He signed the letter, however, because as a constituent and a rabbi he felt a responsibility to let his views as a Jew be known.
“I’ve learned this lesson — that the voice of faith communities is often assumed to be on a particular side, and raising my voice as a rabbi can be a great help in conveying the fact that there are different opinions on an issue,” Abraham said.
Among the NJ rabbis signing the letter were Richard Hammerman of Caldwell, Brooks Susman of Freehold, Elliott Tepperman of Montclair, Donald Weber of Morganville, David Levy of Succasunna, and Ruth Gais of Summit.
Not all rabbis were on board with the letter.
“Making $250,000 in the New York-New Jersey area does not make one wealthy,” wrote Rabbi Dr. Bernhard Rosenberg of Congregation Beth-El in Edison in a letter to NJJN (see related article). “As an observant Jew, I have no choice nor do the majority of young observant Jewish families who, even though they may make a combined salary of $250,000, are struggling…. Who are these rabbis to tell us that we have so much money that we can afford the luxury of higher taxes?”
Bend the Arc began lobbying on the tax-cuts issue in August, when it sent nine young activists on an eight-state journey, dubbed the “If I Were a Rich Man” tour, targeting the districts of Congress members who supported maintaining the Bush-era tax cuts.
Comments
Bob Schultz
December 12, 2012
I am bothered by the attempt by persons of the left to justify raising taxes on taxpayers earning over $250k annually as a “Jewish theological issue.” Do they have any idea whether these folks contribute to charity, or if so, how much they contribute? Tzedakah is supposed to come from the heart, not through government confiscation. Raising taxes will result in less disposable income, and through the law of unintended consequences, contributions to bona fide charities will undoubtedly diminish.
The middle class does not earn million dollar incomes, but it is not uncommon for middle class working couples in NJ to earn $200-250 combined. Many police officers, civil servants, senior educators, skilled tradesmen, nurses and others earn in excess of $100k. Proponents of increased taxes, at various times, categorize couples earning more than $200k as “rich.”
Rabbi Kroloff “noted that many wealthy people, starting with Warren Buffett and including people in his own community, support the proposal.” Mr. Buffett, for one, is in tax litigation with the IRS. If he feels the “rich” need to pay more, why doesn’t he just instruct his attorneys to drop the case and pay the IRS? Do “wealthy people” in Rabbi Kroloff’s community utilize the services of tax attorneys and accountants to legally minimize their tax liabilities? Do the 240 rabbis, many of whom earn over $250k annually, claim parsonage allowances and other lawful deductions and exemptions to minimize their taxes? Do any of these folks make direct contributions to the Bureau of the Debt toward retirement of the national debt?
The IRS reported that in 2009 (source: irs.gov), the last year for which full data is available:
Total personal adjusted gross income (AGI) for all earnings groups was $7.6 trillion.
*Persons reporting over $1 million accounted for $726.9 billion, or 9.5% of total personal AGI.
*Persons reporting over $200k accounted for $1.964 trillion, or 25.8% of total personal AGI.
Total federal income tax paid by all individual taxpayers was $865.9 billion.
*Federal income tax paid by persons reporting over $1 million AGI was $177.5 billion or 20.5% of all individual income taxes.
*Federal income tax paid by persons reporting over $200k AGI was $434.3 billion, or 50.2% of all individual income taxes.
The current top marginal tax rate is 35% (AGI over $373,650) and the next highest marginal rate in 33% (AGI over $209,250). Let us create a hypothetical tax increase to please “Bend the Arc Jewish Action”, who seem to believe the “rich” do not pay their “fair share.” If the government were to double the marginal rate to 70% for those earning over $1 million, the IRS would realize additional annual revenue of $177.5 billion. Since the current budget deficit is reported at $1.3 trillion, the annual budget deficit would remain over $1 trillion. If the government went so far as to confiscate 100% of income of those making over $1 million, the annual budget deficit would still approximate $1 trillion. Where does Bend the Arc propose we go from there, double the marginal tax rate on people earning $200K?
Part 1 of 2
Bob Schultz
December 12, 2012
The reality is that significant spending reduction is required to restore fiscal stability. As the federal government continues to spend more than it takes in, the national debt and its servicing costs continue to increase. Balancing the federal budget through spending cuts and revenue increases are no longer an option as a short-term goal. The long-term goal should be generation of budget surpluses to decrease the nation debt, which now exceeds $16 trillion.
It has been demonstrated in the past that lower, rather than higher marginal tax rates generate additional revenue to the government. Perhaps we should begin by lowering corporate tax rates to encourage return of capital to the US. If companies like GE are encouraged through lower corporate tax rates to return manufacturing facilities to the US, it will initiate a domino effect of economic stimulation: i.e., plant construction, material and service suppliers and company workers. These companies will again pay US taxes, as will the vendors and suppliers, and best of all they will employ more tax-paying Americans.
Part 2 of 2
ROSENBERG
December 12, 2012
Recently, Conservative Rabbi Jack Moline in Alexandria, Va., said his family earns more than $250,000 a year and he still supports ending the tax cuts for the wealthiest two percent of Americans.
“That is very much against my self-interest and the self-interest of many of those in our community,” he said. “It makes a lot of sense for people who are not going to pay this tax to advocate for others to pay it. But it gives this position more credibility if people who would be affected say, ‘I’m stepping up and you should too.’ Is it the best solution? I don’t know, but the worst response would be to do nothing.”
Rabbi Moline added that he “admire[s] Warren Buffet because he consistently said he was not paying enough of his fair share of taxes, and that is something we in the Jewish community should be emulating.”
In fact, nearly 240 “progressive, left-wing” rabbis have signed a letter in support of the President’s proposal to allow tax cuts to expire at the end of the year for those making above $250,000 annually. The letter was written by Bend the Arc Jewish Action, which bills itself as the largest Jewish social justice organization devoted to domestic policy issues.
Making $250,000 in the New York-New Jersey tri-state area does not make one wealthy.
I notice this was signed by Reform and Conservative rabbis. How many of them live in the tri-state area of New York, New Jersey, and Connecticut? How many of them pay exorbitant tuitions to day schools and yeshivas beginning at age four for their children?
Most people do not spend this type of money until college. In many cases, college is cheaper. I hope none of these rabbis will tell me that sending my children and grandchildren to day schools or yeshivas is a luxury of choice.
As an observant Jew, I have no choice nor do the majority of young observant-Jewish families who, even though they may make a combined salary of $250,000, are struggling. Try buying kosher food for the same price as non-kosher food. The choice to live in a religious community is based upon the need to educate our families in the ways of Torah observance. It is a sacrifice we all make.
Who are these rabbis to tell us that we have so much money that we can afford the luxury of higher taxes?
Rabbi Dr. Bernhard Rosenberg
Edison, NJ
Arthur Rubinstein
December 14, 2012
Rosenberg if your making over $250,000 per year be happy stop your crying. The fact of the matter is if your sending your children to private school that is your business and same goes if your paying for grandchildren private school cause your grandkids too good for a public school education. Rosenberg your no better than anyone else stop the baloney, your living high on the hog and appears being a Rabbi you make out better than most.
ROSENBERG
December 19, 2012
For the record I do not make that type of money. I will not bother to comment on the other non-sense. RABBI DR. BENRHARD ROSENBERG
BZ
December 21, 2012
Rosenberg writes “I hope none of these rabbis will tell me that sending my children and grandchildren to day schools or yeshivas is a luxury of choice.”
Of course it is a luxury of choice! New Jersey has excellent public schools available for free, and you’re opting for a more expensive option. You’re free to make that choice, but it should have no more impact on public policy than the choices of those who spend their money on expensive cars or fancy restaurants.
But it’s worse than that: Your letter is proof that day school education has a corrupting effect on Jewish values, since it causes people with incomes in the top 2% to see themselves as poor (the opposite of “Eizehu ashir? Hasameich b’chelko”) and to abandon their responsibilities to their country and to their neighbors.