The Sane Budget Fix You Probably Didn’t Hear About
The other day Senate Democrats did something they had failed to do for far too long. They presented their own blueprint to meet the country’s budget crisis. It was permeated not only by decency, but fiscal and economic sanity.
As described in the Washington Post, under this plan the top 1 percent of American earners, individuals making more than $500,000 and families more than $1 million a year, would see their top tax rate rise to 39.6 percent, which was where it was in the early Clinton years. The capital gains rate would also rise to 20 percent from 15 percent, hedge fund managers would pay higher taxes, corporate offshore tax shelters would take a big bit, and there would be Pentagon spending reductions of a size that both Republicans and the White House have already agreed to.
Total revenue increases and savings from this Senate Democratic package over 10 years would be great enough so there would be no need to reduce Medicare or Social Security payments during this period. Only modest reductions of about $350 billion in other domestic programs would also be required.
Stepping back, what this plan really does is simply take back the overly generous tax breaks a small number of the richest and best connected Americans have garnered for themselves through their influence over Congress and the White House in recent decades. These benefits, it should be emphasized, have NOT trickled down, have NOT proven to be good job creators, and have ONLY actually worked to expand the gulf between rich and poor in this country while badly stressing a declining middle class.
Astonishingly, this plan has not only failed to gain any traction in the debate over the budget, it has barely earned media notice. Instead, the debate here continues to be dominated by the likes of Reps Ryan and Cantor, and the visceral anti-government rantings of a fringe economic right wing.
There really are choices in this debate. Here they are: Continue to pander to the very richest and trample over the rest of us, or save the spending power of the vast majority, the real job creators, by taking a bit from those who have been getting too damn much for too damn long while giving back too damn little.
It’s your country. Choose!
More from this writer at http://blog.wallstreetpoet.com
3 Responses to “The Sane Budget Fix You Probably Didn’t Hear About”
How odd, you didn’t actually link the WP article.
“Senate Democrats have drafted a sweeping debt-reduction plan that would slice $4 trillion from projected borrowing over the next decade without touching the expensive health and retirement programs targeted by President Obama.
Instead, Senate Democrats are proposing to stabilize borrowing through sharp cuts at the Pentagon and other government agencies, as well as $2 trillion in new taxes, primarily on families earning more than $1 million year, according to a copy of the plan obtained by The Washington Post.
With debt-reduction talks under way between Obama and congressional leaders, Senate Democrats are unlikely to adopt the blueprint. However, it has gained broad support among those eager to chart a path to solving the nation’s budget problems without making politically painful cuts to Social Security and Medicare.”
So let’s see, it hasn’t yet been introduced even to the full budget committee, nor has it been published, nor has it been scored by the CBO and you wonder why we aren’t all atwitter about it?
http://www.washingtonpost.com/business/economy/senate-democrats-draft-debt-reduction-plan/2011/07/08/gIQAFQbS4H_story.html
Capital gains should be taxed at the same rate as every other income. There is no reason for otherwise.
Simple rules of money: $1 = $1 = $1. If a man earns $50K driving a truck, he has contributed services valued at $50K for the greater economy. If a man earns $50K from an investment he made in a company, he has contributed services valued at $50K for the greater economy.
Having two levels of taxation does nothing but enforce a class system. Punishing the working class and rewarding the investor.
Plus low capital gains taxes, which have been low for decades, aren’t really doing a lot for economic growth in this country, are they?
Want to impress me? Rewrite the tax code so only capital gains resulting from investment in this country are taxed low. Overseas stuff gets the full rate. Then maybe we’ll see capital gains tax cuts amount to a hill of beans for economic growth.
Well, certainly, “Income is income, from whatever source derived.”
Just be honest, I insist — tax realized, not unrealized, capital gains.