The Congressional Progressive Caucus has a Plan too!

[mame]

Now this is something I can get behind.

The CPC proposal:
• Eliminates the deficits and creates a surplus by 2021
• Puts America back to work with a “Make it in America” jobs program
• Protects the social safety net
• Ends the wars in Afghanistan and Iraq
• Is FAIR (Fixing America’s Inequality Responsibly)
What the proposal accomplishes:
• Primary budget balance by 2014.
• Budget surplus by 2021.
• Reduces public debt as a share of GDP to 64.1% by 2021, down 16.5 percentage points from a baseline fully adjusted for both the doc fix and the AMT patch.
• Reduces deficits by $5.6 trillion over 2012-21, relative to this adjusted baseline.
• Outlays equal to 22.2% of GDP and revenue equal 22.3% of GDP by 2021.

It's worth pointing out that with revenues at 22.3 percent of GDP in 2021, the overall tax take - including state and local - would be far below levels currently in place in most other advanced countries(especially in Europe).

The vast majority of deficit reduction comes via a combination of medicare cost control, tax increases and defense cuts. As a medium term plan(which is what both Ryan's and Obama's proposals are as well) this seems pretty appealing as it doesn't include the kinds of cuts that would harm economic recovery.

The following graphs show U.S. revenue compared with the G7 countries, Defense spending (adjusted for inflation), and just how "progressive" our current tax system is. This plan increases revenue to levels still below most other advanced countries(atm revenue is artificially high as a percentage of GDP due to high unemployment, this plan projects revenue to equal 22.3% of GDP in 2021), reduces defense spending (we'll still pay more for defense than any other contry in the world) and fixes our progressive tax system so that it is actually progressive - as intended.

sources: oecd library, CNN money, and Paul Krugman.

 

[Ernst]

Well the Off shore banking is the biggest problem. Tax loop holes and off shore banking alone can fix the problems we have.

To cut medical care for our old and disabled while we allow monies to be moved of shore yet still participate in the economic zone that is the USA is the source of loss for billions of tax dollars each year. Add to that the tax loop holes and we have 100 billion dollars or more lost each year.
So if we put a band-aid on spending for the poor while we ignore the haemorrhaging wound of billions of lost tax dollars for the banking and corporate realms we might as well build gas chambers and push the people in as they become a financial burden to the Plutocracy.

But thank you for posting I read the whole thing. Maybe that will work but without the offshore banking fix nothing we do will last.

 

[mame]

Budget’s Bottom Line (Over 10 year Window)
• Deficit reduction of $5.6 trillion
• Primary spending cuts of $869 billion
• Net interest savings of $856 billion
• Total spending cuts: $1.7 trillion
• Revenue increase of $3.9 trillion
• Public investment of $1.7 trillion
• Budget surplus of $30.7 billion in 2021, debt at 64.1% of GDP

Here are the numbers.

Another thing to note about this plan is that it balances the budget 20 years ahead of the Ryan plan - without gutting medicare btw...

 

[Corso312]

fix loop holes is correct...2/3 of the corporations do not pay federal taxes..that is absurd they make billions and pay nothing in some cases get credits. corporate welfare, agricultural welfare and having 1000 off share military bases are bleeding this country dry.

 

[mame]

fix loop holes is correct...2/3 of the corporations do not pay federal taxes..that is absurd they make billions and pay nothing in some cases get credits. corporate welfare, agricultural welfare and having 1000 off share military bases are bleeding this country dry.

This is going to happen pretty much no matter what plan(or mixture of plans) ends up being adopted. Tax reform is going to happen... with that issue it's a matter of ending loopholes and leaving corporate tax rates at 35% (ala what the left wants), ending loopholes and dropping the rate to 28-30% (like the bowles-simpson recomendation that Obama is likely to pursue), or ending loopholes and dropping the rate to 25% (the Ryan plan).

I'd argue that Ryan's wish of dropping tax rates to 25% is a bad idea both politically and economically... He is essentially lobbying for tax cuts for the rich while cutting services for the poor(bad move politically) all in the name of deficit reduction - even though he refuses to allow the loopholes to end without dropping the tax rate (solidifying the bad political move). Economically, to ignore revenue as part of the equation is naive at best and purposfully destructive at worst. We must raise revenue if we are going to be serious about the nation's debt...

 

[Corso312]

how are you so sure there is going to be tax reform? pols always lie and drag their feet..both parties are controlled by special interest groups and corporations..this was the last industrialized nation to ban slavery, will be the last industrialized nation for universal healthcare..the greed is just too much i can not say for certain reform is coming in any way shape or form, sad but true

 

[mame]

how are you so sure there is going to be tax reform? pols always lie and drag their feet..both parties are controlled by special interest groups and corporations..this was the last industrialized nation to ban slavery, will be the last industrialized nation for universal healthcare..the greed is just too much i can not say for certain reform is coming in any way shape or form, sad but true

Tax reform is going to happen because it's one of the very few things that both parties are agreeing on right now. The only disagreement on that front is whether the rich should get their rates cut as compensation, and if they do get a rate cut... how much? Many conservatives like to talk about how our corporate tax rate is the highest in the world but ignore the fact that our effective tax rate is far from the top (one of the best rates among developed nations). Tax reform will happen just wait and see(it'll likely end up a big battle though... republicans dont want any tax increases - whether direct or indirect).

 

[NLXSK1]

It's worth pointing out that with revenues at 22.3 percent of GDP in 2021, the overall tax take - including state and local - would be far below levels currently in place in most other advanced countries(especially in Europe).

A little over 200 years ago we fought a bloody war of independence to free ourselves from being like Europe. Why would we want to be like them now? Oh wait, because of our oppressive government...

 

[NLXSK1]

Tax reform is going to happen because it's one of the very few things that both parties are agreeing on right now.

ROFLMAO!!! They are agreeing that tax reform is a good idea because it is a good sound bite. How tax reform is achieved is where there is no way anyone is going to agree.

 

[mame]

A little over 200 years ago we fought a bloody war of independence to free ourselves from being like Europe. Why would we want to be like them now? Oh wait, because of our oppressive government...

It's clear your blind hatred for Europe is partisan... What makes you think Europe is so bad? Germany, for example, is one of the strongest economies in the world for it's size why not look at what Germany has done as a guide? Most developed nations tax more than the U.S.. The U.S. is in debt, so the appropriate response will include tax increases. This is OK because we already pay less taxes than citizens of other nations while enjoying many of the same benefits... We can't have our cake and eat it too - either entitlements get gutted or taxes go up(or obviously a mix of both). The vast majority of Americans are in favor of raising taxes and keeping programs like medicare intact. Why would you not oblige? The evidence shows the rich pay less in taxes than ever before... Are you seriously so brainwashed that the anti-tax rhetoric wont allow you to see that?

When I look at my budget, I look at both spending and revenue - not just one.

ROFLMAO!!! They are agreeing that tax reform is a good idea because it is a good sound bite. How tax reform is achieved is where there is no way anyone is going to agree.

Considering Ryan's plan, Obama's plan and the Bowles-Simpson recomendation includes tax reform within them it is extremely likely that tax reform will happen in some shape or form.

 

[Carne Seca]

I will be more than happy to pay higher taxes as long as it's across the board. Plus I think we need to get the single payer option back into discussions.

 

[JoSixChip]

I will be more than happy to pay higher taxes as long as it's across the board. Plus I think we need to get the single payer option back into discussions.

Single payer option? While that may be fine for you, I prefer to make my own medical decisions and pay my own bills. If you want someone else to pay your medical bills at least have the balls to say what you mean. When you ask for help or a handout and someone gives it to you, it's called charity. When you confiscate the wealth of others to do it, it's called tyranny. Everyone in this country has, or at least had before the progressives came along, the opportunity to improve their standing in life through hard work and personal responsibility. Now suddenly "success through hard work" is a dirty, insensitive phrase.

I'll agree to an across the board tax increase when everyone pays the same taxes. Until then, I'll find every way possible not to pay them.

 

[Charlie Ventura]

Over 40% of Americans pay NO personal income taxes. The top 5% of income earners pay 40% of the tax bite. The Progressives keep insisting on "fairness," right? OK, so let's scrap the entire tax code ... all 77,000 pages of it and go to a national sales tax. Everyone pays. No tax on income. No corporate taxes. No capital gains tax. No estate tax. No write-offs. No fear. No audits. No compiling book keeping records. No tweaking the tax code to control behavior. No lobbying for special tax breaks. Just one, end-user consumption tax.

 

[JoSixChip]

Over 40% of Americans pay NO personal income taxes. The top 5% of income earners pay 40% of the tax bite. The Progressives keep insisting on "fairness," right? OK, so let's scrap the entire tax code ... all 77,000 pages of it and go to a national sales tax. Everyone pays. No tax on income. No corporate taxes. No capital gains tax. No estate tax. No write-offs. No fear. No audits. No compiling book keeping records. No tweaking the tax code to control behavior. No lobbying for special tax breaks. Just one, end-user consumption tax.

I'm on board with that, I think the current income tax is a obvious violation of the 4th amendment. The government has no business knowing how much I make or how much I am worth. It is unreasonable search and seizure. The fact that the IRS has the power to confiscate everything you have on a whim, with no due process is flat out scary.

 

[JoSixChip]

Hence the word, OPTION. Do you need me to give you the definition of OPTION or can you figure that out on your own?

How do you pay for a single payer plan if it is optional? Oh that's right, you forcefully take money from non-participants to pay for your optional plan. The only roll for govenment in health care is to prosecute negligence and malice, period. Otherwise you end-up with a system where the ruling class controls it and uses it as a tool of control and to acquire votes. For example, you'll note that congress did not include itself in obumbercare.

 

[NLXSK1]

A national sales tax eliminating all federal income taxes would be awesome. The reason it will never be implemented is it takes too much power away from the legislature to tinker with the tax code for election donations.

Another complaint is the number of government jobs it eliminates.

 

[mame]

Over 40% of Americans pay NO personal income taxes. The top 5% of income earners pay 40% of the tax bite. The Progressives keep insisting on "fairness," right? OK, so let's scrap the entire tax code ... all 77,000 pages of it and go to a national sales tax. Everyone pays. No tax on income. No corporate taxes. No capital gains tax. No estate tax. No write-offs. No fear. No audits. No compiling book keeping records. No tweaking the tax code to control behavior. No lobbying for special tax breaks. Just one, end-user consumption tax.

Compared to 30 years ago the rich, corporations in particular, pay less taxes as a percentage. They pay most of the taxes because they hold most of the wealth - which is fair. I'd go further and assert that compared to 10, 20, 30 years ago the wealthy has payed less taxes as a percentage... How is this fair? All the left is asking is that the rich - particularly corporations - pay their fair share of taxes.

Overall, our taxes would still be among the lowest compared to with all developed nations. Why is this too much to ask? How can you believe that we are possibly able to get out of debt without tax increases? The evidence shows the debt issue is at least as much of a revenue issue as it is a spending issue. Why is that so hard to embrace? Also, do you understand the point of a progressive tax system?

 

[UncleBuck]

Over 40% of Americans pay NO personal income taxes. The top 5% of income earners pay 40% of the tax bite.

sounds about right, considering that the top 5% make about 40% or more of the money, and the bottom 40% are practically in poverty.

The Progressives keep insisting on "fairness," right? OK, so let's scrap the entire tax code ... all 77,000 pages of it and go to a national sales tax. Everyone pays. No tax on income. No corporate taxes. No capital gains tax. No estate tax. No write-offs. No fear. No audits. No compiling book keeping records. No tweaking the tax code to control behavior. No lobbying for special tax breaks. Just one, end-user consumption tax.

how is it fair if 100% of the income of the working poor is taxed (since the working poor, like myself, live hand to mouth) while a much lesser percentage of income is taxed as you move up the scale?

that actually sounds like a regressive tax to me.

 

[NLXSK1]

Are you being serious?

All the left is asking is that the rich - particularly corporations - pay their fair share of taxes.

Have you looked at your telephone bill lately? How about your cable bill? Would you like to show the class the laundry list of taxes tacked on to it?

Corporations DONT PAY TAXES!!!! YOU DO!!!

You seriously kill me... Seriously...

Here is the simple math... Profit = Income - expenses

If you add a tax... It adds to the expense side. When you do that, because a corporation is not going to lose profit... It just tacks the tax onto YOUR bill. If you want to argue about that see the cable bill example above.

So, you are screaming for the government to add another tax that YOU have to pay on goods and services. *golfclap* bravo... Yet another person who has started heartily drinking the coolaid because the benevolent government (you know, the one that spent us into 14 trillion dollars of debt...) told you that it was all because of the evil corporations.

Keep being pissed at the rich and the corporations and keep missing the point of the conversation. The government simply taxes and spends too much money screwing with the rich and the corporations. This causes the corporations and the rich to spend millions upon millions of dollars in lobbyists and campaign donations to make sure they dont get soaked by the tax code. And it is all paid for by YOU...

ROFLMAO!!! You are the sheep sitting at the table with the 2 wolves (the government and the corporations) deciding what is going to be for dinner. And you should not blame the corporations because they are honest about what they do. It is the politicians that promise to protect you while stealing your wallet.

 

[mame]

Are you being serious?



Have you looked at your telephone bill lately? How about your cable bill? Would you like to show the class the laundry list of taxes tacked on to it?

Corporations DONT PAY TAXES!!!! YOU DO!!!

You seriously kill me... Seriously...

Here is the simple math... Profit = Income - expenses

If you add a tax... It adds to the expense side. When you do that, because a corporation is not going to lose profit... It just tacks the tax onto YOUR bill. If you want to argue about that see the cable bill example above.

So, you are screaming for the government to add another tax that YOU have to pay on goods and services. *golfclap* bravo... Yet another person who has started heartily drinking the coolaid because the benevolent government (you know, the one that spent us into 14 trillion dollars of debt...) told you that it was all because of the evil corporations.

Keep being pissed at the rich and the corporations and keep missing the point of the conversation. The government simply taxes and spends too much money screwing with the rich and the corporations. This causes the corporations and the rich to spend millions upon millions of dollars in lobbyists and campaign donations to make sure they dont get soaked by the tax code. And it is all paid for by YOU...

ROFLMAO!!! You are the sheep sitting at the table with the 2 wolves (the government and the corporations) deciding what is going to be for dinner. And you should not blame the corporations because they are honest about what they do. It is the politicians that promise to protect you while stealing your wallet.

Okay... by your logic we should get rid of corporate taxes so they can pass the savings onto us! Do you trust them to do that? I don't... I doubt many do.

Besides, although your statement is true to an extent, once you consider the downward pricing pressure built into capitalism - you'd realize that's largely prevented. If your competitor is willing to suck up the cost of their income taxes and earn a lower profit to out price and outsell you, you'll need to do the same thing to survive. Most of the things we commonly buy are from very competitive markets(think foods like wheat, rice... commodities like gas) so most of the stuff we buy is largely shielded from this "pass it on" scenario because of how competitive these markets are. Kind of messes up your whole "corporations pay no taxes, only the consumer does" argument.... Which, by the way, is just as tired and discredited as most other conservative talking points.