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Wed Dec 5, 2012, 11:36 AM

Here is a (my) deal that might allow us all to move forward on the "Fiscal Cliff" issue

Extend Bush tax cuts for all up to $500,000. (This would take care of a lot of small businesses)

Raise rates on over $500,000 income back to Clinton levels FOR THE NEXT 6 YEARS. Revisit tax rate issue in light of where the economy is in 6 years.

Allow primary home mortgage interest to remain as a deduction, cap second home mortgage interest deduction at 50%. Third home at 25%.

Increase Capital gains taxes by 3 points.

Leave Social Security alone for now. It doesn't impact the problem.

Somehow address the high commercial rental rates that are essentially crippling business investments and ventures.

Really clamp down and enforce criminal penalties for tax evasion, Medicare and Medicaid fraud, especially in nursing homes and rehab centers.

Raise the cap on payments into Medicare by 30% beginning next year.

Begin a real Public Health Service (not the sham system that currently exists and costs the government dearly for a practically worthless system) that actually allows graduating medical students to pay off student debts by providing quality medical care and health services to current Medicaid patients for a minimum of four years at the rate of debt repayment of $60,000/yr up to 6 years of service. Pay stipends to the students working in the system at the rate of 130% of the Federal poverty level in addition to free medical care for all students.

Begin a real Public Service in Excellence program for developing top notch teachers across the country. Provide for education cost pay-back similar to the Public Health Service suggested above.


Ok, that's it for now. You folks tell my why any of this is not a good idea or how it would be unworkable.

24 replies, 1401 views

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Arrow 24 replies Author Time Post
Reply Here is a (my) deal that might allow us all to move forward on the "Fiscal Cliff" issue (Original post)
kelliekat44 Dec 2012 OP
dkf Dec 2012 #1
kelliekat44 Dec 2012 #3
Yavin4 Dec 2012 #10
Walk away Dec 2012 #12
dkf Dec 2012 #13
kelliekat44 Dec 2012 #17
Yavin4 Dec 2012 #19
Yavin4 Dec 2012 #18
dkf Dec 2012 #23
Yavin4 Dec 2012 #24
kelliekat44 Dec 2012 #16
Yavin4 Dec 2012 #22
Cleita Dec 2012 #2
kelliekat44 Dec 2012 #5
Cleita Dec 2012 #7
kelliekat44 Dec 2012 #20
dkf Dec 2012 #14
leftstreet Dec 2012 #4
kelliekat44 Dec 2012 #6
leftstreet Dec 2012 #8
Cleita Dec 2012 #9
Walk away Dec 2012 #11
kelliekat44 Dec 2012 #15
Walk away Dec 2012 #21

Response to kelliekat44 (Original post)

Wed Dec 5, 2012, 11:38 AM

1. Why should second or third homes get any deduction?

 

And Medicare doesn't have a cap on what is taxable.

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Response to dkf (Reply #1)

Wed Dec 5, 2012, 11:42 AM

3. This is just an idea for moving negotiations forward. You ask a good question that I would hope

would be asked during a debate on the proposal. The other side needs to see some benefit for them.

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Response to dkf (Reply #1)

Wed Dec 5, 2012, 11:47 AM

10. Behind Every Deduction, There Is An Industry and Jobs

The home construction and realtor industry, and the blue collar and middle class laborers that they employ, depend on mortgage deductions in order to survive.

Take away deductions on 2nd and 3rd homes, and that industry will take a major hit.

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Response to Yavin4 (Reply #10)

Wed Dec 5, 2012, 11:57 AM

12. So we should help rich people buy 2nd and 3rd homes to help the building industry.

Why don't we just cut out the wealthy middleman and make our tax checks out directly to contractors! I think our tax $$$ would be better spent hiring the industry to build low cost housing for folks who need it to live in.

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Response to Yavin4 (Reply #10)

Wed Dec 5, 2012, 11:59 AM

13. Geez how many people have 2nd and 3rd homes?

 

I can't imagine that will affect all that many people.

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Response to dkf (Reply #13)

Wed Dec 5, 2012, 12:47 PM

17. But every little bit will help. Mostly the 1% have mutiple homes.

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Response to kelliekat44 (Reply #17)

Wed Dec 5, 2012, 01:21 PM

19. The blue collar laborers who build/renovate those homes are not the 1%

They depend on people buying multiple homes for their livelihood. The 1% don't build, repair, and maintain these homes. Blue collar laborers do. Cut the deduction and less homes are made/bought/renovated which means less jobs.

That's the huge problem with cutting deductions. Many deductions support entire industries.

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Response to dkf (Reply #13)

Wed Dec 5, 2012, 01:15 PM

18. Depends on Where You Live

Let's say you're a blue collar labrorer in a vacation/resort area in the U.S., say the Hamptons or Miami Beach, Arizona, coastal South Carolina, people buying/renovating/renting vacation homes and/or condos are the prime source of your employment. That 2nd deduction is what pays your salary.

Without those second deductions, unemployment in said regions would skyrocket because there is no other industry in that area.

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Response to Yavin4 (Reply #18)

Fri Dec 7, 2012, 08:57 AM

23. Isn't that a classic trickle down argument? I thought that didn't work?

 

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Response to dkf (Reply #23)

Fri Dec 7, 2012, 04:46 PM

24. No. It's Not Classic Trickle Down.

Trickle down is cut taxes on the rich, and they will use their excess wealth to create jobs. There's no incentive to actually spend money. The rich can just sit on their money if they want to.

OTOH, tax deductions provide a major financial incentive to spend money. The rich, and nearly rich, have a financial incentive to spend, invest, and donate money.

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Response to Yavin4 (Reply #10)

Wed Dec 5, 2012, 12:46 PM

16. Whose taking them away? I proposed reducing them. nt

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Response to kelliekat44 (Reply #16)

Wed Dec 5, 2012, 02:08 PM

22. Reductions Will Also Hurt Jobs

The thing to do is raise all rates and allow for more deductions, not less.

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Response to kelliekat44 (Original post)

Wed Dec 5, 2012, 11:41 AM

2. One small change. Leave Social Security alone. Period.

Social Security has contributed 0 to the deficit.

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Response to Cleita (Reply #2)

Wed Dec 5, 2012, 11:43 AM

5. ok, but what about the rest of the proposal? nt

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Response to kelliekat44 (Reply #5)

Wed Dec 5, 2012, 11:44 AM

7. Wonderful. I agree with all except that one small point. n/t

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Response to Cleita (Reply #7)

Wed Dec 5, 2012, 01:59 PM

20. Thank you.

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Response to Cleita (Reply #2)

Wed Dec 5, 2012, 12:01 PM

14. These payroll tax holidays are beginning to add up.

 

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Response to kelliekat44 (Original post)

Wed Dec 5, 2012, 11:42 AM

4. There is no fiscal cliff. It's made up

We need jobs, higher wages, and national non-profit healthcare

And fuck anyone who has 3 homes

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Response to leftstreet (Reply #4)

Wed Dec 5, 2012, 11:44 AM

6. ok, but what is your proposal to avoid the S in the fan? nt

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Response to kelliekat44 (Reply #6)

Wed Dec 5, 2012, 11:45 AM

8. What 'S in the fan?'


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Response to kelliekat44 (Reply #6)

Wed Dec 5, 2012, 11:47 AM

9. From what I understand, most of us aren't going to be affected.

We are already in deep shit. If it hits the fan it will be on the top 5% in wealth. Even if they lose half of what they had, it isn't going to affect their lifestyles one bit.

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Response to kelliekat44 (Original post)

Wed Dec 5, 2012, 11:53 AM

11. I don't get what commercial rental rates have to do with...

anything. How does that balance the national budget? Why only a 3% increase in cap gains? Why any mortgage rate deduction on 2nd and 3rd homes at all and cap first ? What about taxes on overseas accounts?

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Response to Walk away (Reply #11)

Wed Dec 5, 2012, 12:44 PM

15. It's all related to job creation by small and medium sized businesses. Many are folding and/or

can't hire employees because their rental rates are eating up their profits. This happens a lot in strip malls and even in mega malls. Westfiled ownership and management of many malls in many states have increased rents to the point that small operators can't survive.
Vulture Landlords in inner cities make it so that small business can't keep up their properties or can't hire people or can't make enough money to stay in business. This drives out employment opportunities in small communities and inner cities neighborhoods.

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Response to kelliekat44 (Reply #15)

Wed Dec 5, 2012, 02:03 PM

21. I have work in retail as a director of operations in several national companies...

Right now mall rentals are at an all time low. Inner city and sub-urban malls are filled with empty real estate. I recently had a commercial property owner in one of the wealthiest and populated counties in the country offer me a five year lease for a percentage of profit on a business that doesn't even exist yet. He's even willing to kick in a little start up.

Most Mall job are done by teenagers and part timers who get no health care, no job security and spend their check at the mall buying the stuff they sell. Payroll is always cut to the bone as the only way for management to make a few bucks is to screw everyone working underneath them.

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