Idea for a Tax compromise

[BainsBane]

Here's a compromise: raise taxes on family incomes at the $250 k level an additional 2%, $500k and additional 4%, and above $1 million an additional 6%.

[Myrina]

1. What does that work out to, dollar wise?

Bernie Sanders, on Elliot Spiter's show the other night, said that the proposal on the table last time around was $1 in tax increases for every $10 in spending cuts ('entitlement reform').

Completely unacceptable!! It should be the other way around, $10 in tax increases on corporations and earners > $250k/yr & the bulk of any spending cuts coming from the biggest hogs - corporate subsidies and military contracting.

[BainsBane]

2. In terms of how much revenue?

I don't know. Obviously that is the key question but, I don't know how to calculate it. It seems reasonable, however, to have a number of higher rates rather than just one.

Obama has been talking about $2.50 in spending cuts for every $1 in revenue. I believe that is what Simpson-Bowles suggested. Raising $10 in taxes for every dollar it cuts would require large tax increases on the middle class and the poor, which would suppress demand and hurt the economy. No one will go for that.

[Myrina]

4. Not necessarily ...

... if the 'new taxes' are targeted at luxury purchases, carbon emissions, pollution, 'how many offshore offices you have' and shit like that, we could run up the revenue total just by taking aim at the upper crust. They have ludicrous deductions and exemptions that you and I & other average joe's can barely dream of.

[BainsBane]

7. I don't think the math works on that

The President says deductions alone can't account for the proposed 4% marginal increase on upper incomes. I doubt it could get to the amount needed to pay off the debt.

[DJ13]

3. I like it, but the only way to force that on the GOP is to let the budget fall off the cliff

Sadly, Obama doesnt seem to grasp how much leverage the so called fiscal cliff gives him.

[BainsBane]

5. Not necessarily

This may be the best time to work out a compromise. Going over the cliff is a last resort, not a goal. The House can pass the Senate tax bill for the middle class now, and they might if they get enough pressure from constituents.

[DJ13]

8. This may be the best time to work out a compromise.

Sorry, I dont agree.

If the WH thinks they must avoid the mythical fiscal cliff at almost any cost they will compromise too much to avoid it.

After the cliff happens (and there wont be much damage for a few months afterwords anyway) Obama starts from a position of strength.

Taxes can be cut on just the middle class, and who in the GOP could say no?

The defense budget can be (slightly) increased from the automatic cuts, with a rider to raise the cap on Social Security to make it solvent, and who in the GOP would say no?

Once that fiscal cliff happens most of Obama's platform becomes possible.

Avoid the cliff and the GOP wont let any of his proposals pass.

[Dubster]

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