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View Diary: Steven Rattner offers ideas on raising tax revenue and I respond (72 comments)

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  •  I agree across the board. (4+ / 0-)
    Recommended by:
    RUNDOWN, Egg, ferg, ozsea1

    Some additional comments:

    1) At some point, say $100K, investment income should revert to normal income tax rates.

    2) The buffet rule AMT for millionaires (30%) should be extended to Obama's $250K bracket, at a 22.5%, a $500K bracket, at 25%, and a $750K bracket, at 27.5%.

    3) As you suggest, we should NOT have to pay for Tax Code modifications with a Grand Bargain. We have been paying for trickle-down economics, without reciprocating benefit. for decades.

    Instead, the cap on FICA should be eliminated, the tax should apply to ALL income (the whole pie), and benefits should be progressively reduced and ultimately eliminated for anyone earning more than $250K by other means during retirement. Let's END the discussions on SS and Medicare budget "problems".

    To this I would add the following two "stimulus" programs.

    1) Increase the minimum wage over the next two years: $7.25 to $7.75, then $8.25. If the Dems win 2014, they can continue increasing thereafter, hopefully even more aggressively.

    2) By quintile, taxpayers are earning the following average incomes before taxes and paying the following effective taxes (yes, these rates exclude payroll taxes, which disproportionately impact the bottom 4 quintiles):

    Lowest     $18,400       2%
    Second     $42,500       9.1%
    Middle      $64,500     12.7%
    Fourth      $94,100     15.7%
    Highest  $264,700     20.1%

    I would propose that for the next two years, the bottom two quintiles be allowed to pay taxes on only 2/3s of whatever their net taxable income turns out to be. These $ will go right back into the economy and help pull some people out of poverty.

    In addition, for the same two years, I suggest that the Middle and Fourth quintiles be allowed to pay taxes on 80% and 90% of their taxable incomes. This will increase demand and hopefully also reduce personal debt.

    Last, I would suggest some incentive program for the wealthy--especially those earning $25M or more--to "buy and retire" national public debt, perhaps in conjunction with eliminating offshore tax shelters. Someone else can design/recommend the mechanism.

    The Class, Terror and Climate Wars are indivisible and the short-term outcome will affect the planet for centuries.

    by Words In Action on Sun Nov 25, 2012 at 07:10:25 AM PST

    •  Maybe it's because I earn $260K per year. . . (1+ / 0-)
      Recommended by:
      Words In Action

      . . . . but the range in incomes in the highest quintile is huge (as compared to the other quintiles).  I can assure you that making $260K (all income not capital gains) is wonderful and comfortable, but it is a far cry from making $10 million per year.

      In elder days, there were many more tax brackets, and I see the value of increasing the number now.  What's wrong with a graduated table that goes up to 60% or 70% for those at the mega buck level?

      I am more than happy to pay 40% of my (hopefully growing) income above $250K, but why should I pay only that if get to the $1M level?

      the fact that you're right is nothing more than interesting

      by Egg on Sun Nov 25, 2012 at 10:52:12 AM PST

      [ Parent ]

      •  I agree wholeheartedly. The top bracket (0+ / 0-)

        should not be $250K. There is NO relation between people earning $250K and those earning $10M.

        I think others should be (tax rate, AMT rate):

        $250K (38%, 22.5%)
        $500K (40%, 25%)
        $750K (42%, 27.5%)
        $1M (44%, 30%)
        $5M (48%, 33%)
        $20M (52%, 38%)
        $50M (55%, 43%)
        $100M (58%, 46%)
        $250M (60%, 50%)

        The Class, Terror and Climate Wars are indivisible and the short-term outcome will affect the planet for centuries.

        by Words In Action on Mon Nov 26, 2012 at 08:19:53 AM PST

        [ Parent ]

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