March [##], 2001

The Honorable [NAME] U.S. House of Representatives Washington, D.C.  20515

The Honorable [NAME] U.S. Senate Washington, D.C.  20510

Re:       FY 2002 Budget Resolution and President Bush's Tax Cut Plan Threatens Low-Income Communities


Dear [Senator/Representative NAME]:

As my elected representative, I request that you oppose the FY 2002 Budget Resolution, which contains President Bush's tax cut plan.  On behalf of [Your Organization], and as a member of the National Congress for Community Economic Development, I urge you to vote NO when the Resolution is considered by the House of Representatives.

We are opposed to the FY2002 Budget Resolution being presented in the House of Representatives because it will force real cuts in programs and resources that the community economic development industry and our organization currently use to rebuild distressed communities across this nation. Specifically, I am concerned that the FY2002 budget will undermine implementation of the recently enacted New Markets program, restrict access to community development block and Economic Development Administration grant funds, get in the way of the development of affordable housing, unwisely eliminate resources used to promote economic development activities in rural communities nationwide, and eliminate numerous programs that provide direct assistance to nonprofit corporations like ours that serve low-income communities.

Furthermore, the tax cut proposed by President Bush is far too large and fundamentally unfair.  The plan takes the wrong approach to tax relief for families by providing far too many of its benefits to the highest-income taxpayers. For example, the plan to eliminate the estate tax would benefit primarily the top two percent of tax filers and not the overwhelming majority of families who are not taxed on any inheritance.  Repealing the estate tax could also deprive the nation's chartities of over $15 billion dollars in donations. Any tax cut enacted into law must be far smaller and much more equitable than the Bush tax cut in order to meet the needs and interests of the American people. 

The size of the Bush tax plan and the nature of the FY 2002 Budget Resolution pose a serious threat to community revitalization programs that our community needs.  As an organization serving low-income people and communities, we must ensure that programs such as the Community Development Block Grant, Assets for Independence Act, Sustainable Development Challenge Grant, Technology Opportunities Program, Rural Business Enterprise Grants, the Community Development Financial Institutions Fund, and the Office of Community Services will be increased to meet the need.   I am concerned that if the projected surpluses do not materialize, it could mean cuts in these programs as well.

In our view, to enact this budget or President Bush's proposed tax plan would be both an unwise and a wrong decision. Please vote NO on the FY2002 Budget Resolution. I welcome you to visit my community on April 18, 2001.  I would be delighted to provide you and your staff with a tour to show you how these critical revitalization programs have made a difference in our community.

Sincerely,


[Your Name]
[Your Organization]
[City, State]