September 20, 2004

Dear Senator/Representative,

As you work to reach an agreement on legislation to extend expiring tax provisions, we, as representatives of communities of faith, call on you to take a balanced approach that reflects 1) a commitment to caring for those in need, 2) an awareness of the increasing tax burden which has been placed on moderate income families, and 3) a commitment to fiscal responsibility that promotes the common good and assures a more economically secure nation.  While we are supportive of tax policies that provide needed assistance to low and moderate income families, we are concerned that this legislation will be used as a vehicle to provide additional costly tax breaks to the most affluent among us.  In addition, we remain troubled by the impact of growing budget deficits on spending for critical human needs programs.  Therefore, we urge the adoption of the following recommendations in the final tax extension package:

• Tax relief should be targeted to families most in need. The final agreement should remain focused on extending benefits for moderate and low-income families.  It should correct the omissions in last year’s tax bill by increasing the refundability of the child tax credit, so that low-income families receive the full benefit of the credit.  These provisions should not be conditioned upon or used to justify additional tax cuts for those least in need of assistance. 
   
• Every effort should be made to offset the costs of the legislation.  The growing budget deficit threatens both future commitments and needed investments to provide greater opportunity and economic security for all Americans. Congress should look for ways to pay for tax provisions by raising other revenues (e.g. closing tax loopholes) and avoid passing an even greater burden on to future generations. 
   
• Extensions of benefits for low and moderate income families should not come at the expense of programs serving these same populations.  An additional result of the current budget deficit has been a significant squeeze on many programs serving vulnerable populations.  Our communities can attest to the real and direct impact of these cuts as congregations and non-profit organizations struggle to meet increasing demand for services.  To the extent that this legislation adds to the deficit, the increase should not be used to justify additional cuts in critical human needs programs.

As people of faith, we believe that policy decisions must be evaluated in light of how they assist people in overcoming poverty and strengthening families and communities.  We call on you to support provisions in upcoming tax legislation that will support these goals.

Sincerely,

American Baptist Churches USA
Call to Renewal
Church Women United Legislative Office
Evangelical Lutheran Church in America
Fellowship of Reconciliation
National Advocacy Center of the Sisters of the Good Shepherd
National Council of Churches USA
NETWORK, A National Catholic Social Justice Lobby
Presbyterian Church (U.S.A.), Washington Office
Union for Reform Judaism
United Church of Christ Justice and Witness Ministries
United Methodist Church - General Board of Church and Society