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Reply #20


Response to sanatanadharma (Reply #15)

Thu Dec 13, 2012, 11:24 AM

20. A lot of good, and specific suggestions, let's work the numbers

> "raise tax rates higher (Eisenhower rates) on one million dollars and more earners"
Apply a 91% rate on taxable income (excluding capital gains) above $1 million: $140.1 billion
Calculated from 2009 tax return data.
Source: http://www.irs.gov/uac/SOI-Tax-Stats---Individual-Statistical-Tables-by-Size-of-Adjusted-Gross-Income

> "institute a stock trade tax"
Apply a 0.025% tax on trades: $38.9 billion
Source: http://www.huffingtonpost.com/2011/11/07/wall-street-transaction-tax-revenue_n_1080493.html

> "remove the cap on FICA taxes"
Apply the 4.2% rate on all taxable income: $50 billion
Calculated from 2009 tax return data.
Source: http://www.irs.gov/uac/SOI-Tax-Stats---Individual-Statistical-Tables-by-Size-of-Adjusted-Gross-Income

> "increase capitol gains taxes so money is invested and not taken as personal wealth in offshore accounts"
Tough to figure. A couple different sources state that capital gains represent 7% of personal income taxes collected, but the IRS doesn't break it out. If we go with that 7%, then increase the tax rate from 15% to Obamaís suggested 23.8%: $35.6 billion
Calculated from 209 tax return data, based on that 7% estimate
Sources:
http://www.irs.gov/uac/SOI-Tax-Stats---Individual-Statistical-Tables-by-Size-of-Adjusted-Gross-Income
http://wiki.fool.com/What_Percent_of_IRS_Revenue_Comes_From_the_Capital_Gains_Tax%3F
http://www.factcheck.org/2008/06/breakdown-of-government-revenue/

> "eliminate corporate welfare subsidies"
As calculated by CATO and reported on Huffington: $100 billion
A couple of notes on this one...First, CATO is a conservative outlet, but since Huffington reported it I assume they checked the numbers, Second, this includes subsidies to worthwhile ventures like green energy companies, so we may not want to eliminate it all
Source: http://www.huffingtonpost.com/matthew-lynch-edd/welfare-and-corporate-america_b_1827680.html

> "negotiate lower medicare/ medicade drug prices"
Saves $156 billion over 10 years: $15.6 billion
Source: http://www.washingtonpost.com/blogs/wonkblog/wp/2012/12/03/how-obama-would-cut-medicare-spending-in-a-deficit-deal/

> "cut defense spending"
The defense budget last year was about $700 billion of the $3.8 trillion total budget. To pick a random, but very aggressive* number, letís cut defense by 25%: $175 billion

* I say this is aggressive because Iím talking about an actual decrease in spending, not just reducing the rate of growth in the baseline budgeting they do in Washington. Most politicians are lying to us when they say they are cutting spending. There are automatic increases every year due to their baseline budgeting. So if a budget line item was going to grow at 8%, but they grow it only at 5%, theyíll say they've cut spending, when they really have not.

In total we've addressed $555 billion with the above strategies. There could be some debate about the impact they'll have on investments. A good chunk of the capital gains income is earned by those in that $1+ million income bracket. Raising their top rate to 91% will leave them with much less capital to invest.

That said, $555 billion is no small amount, but it's only about half of last year's deficit, and less than half of this year's projected deficit. How do we get the other $500-600 billion?

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Playinghardball Dec 2012 OP
liberal N proud Dec 2012 #1
DreamGypsy Dec 2012 #2
ProSense Dec 2012 #4
Coyotl Dec 2012 #7
liberal N proud Dec 2012 #17
ProSense Dec 2012 #3
Cha Dec 2012 #5
John2 Dec 2012 #6
Cha Dec 2012 #8
Coyotl Dec 2012 #9
spanone Dec 2012 #10
willhe Dec 2012 #11
Scuba Dec 2012 #16
Flabbergasted Dec 2012 #12
doc03 Dec 2012 #13
pediatricmedic Dec 2012 #14
sanatanadharma Dec 2012 #15
LineLineLineNew Reply A lot of good, and specific suggestions, let's work the numbers
mostlyconfused Dec 2012 #20
pediatricmedic Dec 2012 #21
ProSense Dec 2012 #18
Enrique Dec 2012 #19
ProSense Dec 2012 #22
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