First lets change our focus to those who gain the most from our economy. This is not the top two percent of earners. Yes many people earn money at their jobs putting them in the top 2 percent some doctors, some lawyers and so CEOs and they should be taxed at a higher rate, but these are not the people necessarily making the most. It is those who profit most from capital gains and capital gains are only taxed at 15 percent. We should tax any capital gain at 25 percent until that gain reaches $50,000 and then we should raise rates significantly for those who receive income in any form over $80,000. Besides the increase in the capital gains rate we should institute a progressive bring the profits home tax. For example if you pay the taxes now the rate will be the sameas if the profits were made in the USA, but for every year past that we will levy a penalty of 2 percent per month on income. We also need to let those who have profited most by the Bush tax cuts to amass a fortune pay taxes on estates over $200 thousand. These should be taxed of course at progressively higher rates starting at 2 percent and going up to 55 percent. If we do these things we will have no problem reaching the revenue needed to keep a responsibly sized government going.
As for a responsibly sized government, I firmly believe that government should do for individuals what they cannot do or it can do better than private industry. For this reason a strong safety will continue. We should also cut defense spending starting with the high ticket items desired by the Air Force and the Navy. The Armyand Marines have been the poor stepsisters for 20 years now.
Lets change the military back to the service.