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eridani Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Nov-18-11 05:59 AM
Original message
99% recommendations for deficit reduction
http://october2011.org/blogs/kevin-zeese/99-s-deficit-p...

The recommendations below begin to correct the unfair policies of the last three decades, but these are only first steps to the transformational changes that are needed.

Tax the highest income households: From 1960 to 2004, the top 0.1 percent of U.S. taxpayers the wealthiest one in one thousand have seen the share of their income paid in total federal taxes drop from 60% to 24.3%. Americas highest income-earners the top 400 people who have wealth equal to 154 million Americans have seen their federal income tax drop from 51.2% in 1955 to 18.1% in 2008. If the top 400 paid as much of their incomes in personal income tax as the top 400 of 1955, the federal treasury would have collected $50 billion more in revenue from just those 400 taxpayers. If the top 0.1% of taxpayers Americans with incomes that averaged $4.4 million had paid total federal taxes at the same rate as the top 0.1% paid these taxes in 1960, the federal treasury would have collected an additional $250 billion in revenue.

Merely not extending the Bush tax cuts would add nearly $500 billion each year in tax revenue. Thus in just over two years the goal of the deficit committee would be met. This would be insufficient to correct the wealth divide and does not go as far as Occupy Washington, DC advocates.

A tax of a half of a percent or less on Wall Street speculation could raise over $800 billion in a decade. The Speculation Tax on the purchase of stocks, bonds and derivatives would be a tiny tax with a big impact. People in the U.S. pay much higher taxes on purchases of food and clothing; it is only fair that the wealthy pay taxes on purchasing wealth instruments.

A fair tax on capital gains, treating it as ordinary income would raise $1 trillion over a decade. Wealth-based income and work-based income should be treated equally under the law as it used to be. Warren Buffet has received a great deal of attention for pointing out that he pays a lower tax rate than his secretary or anyone who works for him. The reason for this is that investment income is taxed at a much lower rate than income from labor. The United States needs to tax wealth more and work less.

Congress should enact a pure worldwide tax system, in which all profits of U.S. corporations, whether they are generated in the U.S. or abroad, would be taxed by the U.S. This would end deferral, i.e. where taxes are deferred until money is brought back into the United States.

U.S. corporations would continue to receive a credit against any taxes they pay to a foreign government (the foreign tax credit) so that profits are not double-taxed. Under a pure worldwide tax system, corporations would have little or no tax incentive to move jobs offshore because the U.S. would tax profits of corporations no matter where they are generated. The Treasury estimates that deferral of U.S. taxes on offshore corporate profits costs close to $50 billion each year, and many experts think this estimate is substantially understated.

Ending deferral does not even address the hundreds of billions lost through tax havens. Tax havens should be shut down through the passage of the Stop Tax Haven Abuse Act. In fact, the U.S. Treasury estimates this costs $100 billion each year. In 2006 the U.S. Senate Permanent Subcommittee on Investigations reported that Americans now have more than $1 trillion in assets offshore and illegally evade between $40 and $70 billion in U.S. taxes each year through the use of offshore tax schemes.


Closing corporate tax loopholes would return the fair share of taxes paid by corporations to the funding of government. Declining corporate taxation is another prime factor in increasing deficits. Corporate income taxes have fallen from roughly 4.8% of GDP in the 1950s to only 1.8% of GDP over the past decade. Ending just two large breaks, deferral of overseas revenue and accelerated depreciation would raise about $114 billion over a decade. The Treasury Department lists $365 billion in corporate tax breaks being gifted annually thats $3.65 trillion over the next 10 years. Due to tax loopholes, corporations pay record low tax rates they actually pay 21% on average. Indeed, a recent report by Citizens for Tax Justice found that Wells Fargo received $18 billion in tax breaks, while both Verizon and General Electric paid negative taxes. Earlier Citizens for Tax Justice reported that 12 major companies which together made $171 billion in profits from 2008-2010 paid a negative $2.5 billion in taxes, thanks to $62 billion in tax subsidies.
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w0nderer Donating Member (430 posts) Send PM | Profile | Ignore Fri Nov-18-11 06:24 AM
Response to Original message
1. k&r n/t
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eridani Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-19-11 12:22 AM
Response to Original message
2. Friday night kick n/t
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eridani Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-19-11 03:30 AM
Response to Original message
3. Someone at MoveOn has started a petition on this
This is why I created a petition to The United States House of Representatives, The United States Senate and President Barack Obama, which says:


"I believe the Congressional Super Committee has failed and that Congress could learn from the proposals drafted by the 99% Super Committee. I want the 99% Deficit Proposal to be read aloud in both houses of Congress."


Will you sign this petition? Click here:


http://signon.org/sign/get-the-99-deficit-proposal?sour...
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xchrom Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-19-11 05:47 AM
Response to Original message
4. I like it. Nt
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Frank Jameson Donating Member (45 posts) Send PM | Profile | Ignore Sat Nov-19-11 05:57 AM
Response to Original message
5. I wish we could plaster this near Wall Street ....
Merely not extending the Bush tax cuts would add nearly $500 billion each year in tax revenue. Thus in just over two years the goal of the deficit committee would be met. This would be insufficient to correct the wealth divide and does not go as far as Occupy Washington, DC advocates.


That -- in a nutshell -- is the problem.

I saw something on TV yesterday about all Republicans -- except six -- have signed onto the Grover Norquist tax cut pledge. (Grover is the towel boy for the rich).

Even I find it hard to believe these damn scoundrels put tax cuts for the richest Americans over the well being of the rest of our country. Maybe the OWS crowd should take that up as their rallying scream.
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eridani Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-21-11 03:47 PM
Response to Original message
6. One more informational kick
Why not send this as a fax to Super Congress members?
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Octafish Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-21-11 03:50 PM
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7. Have a surtax on all the big gains since the Dawn of Trickle Down.
Most of the wealth in human history has accrued since 1981. Most of that has remained in the relatively few pockets of the superduper well-off.

Before Grover Norquist recovers from shock, tax capital gains and all financial transactions. Oh yeah, jack up the top rates for individuals and corporations, Big Time.

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