One of my biggest despairs is the lack of a large, coherent economic policy program from the Democratic party. I think it is very important to raise the federal minimum wage . . . or to fight for paid family sick leave . . . or . . . .
It all feels too small-bore and unfocused to confront the obvious problems we face and the organized opposition driving much of those problems. Then I came across this again: the Congressional Progressive Caucus Budget Proposal. http://cpc.grijalva.house.gov/...
It is an intriguing work and it seems like it should have a more prominent role in shaping Democratic policies, particularly as we soon head into the next presidential election season.
Below is a summary of some provisions of the Congressional Progressive Caucus Budget Proposal quoted from a Mathew Yglesias piece (but numerically edited for organizational purposes). What do you think of these proposals, individually or as a whole?
1. It restores Clinton-era marginal income tax rates starting at the $250,000 threshold.
2. It establishes new income tax brackets—45 percent at $1 million, 46 percent at $10 million, 47 percent at $20 million, 48 percent at $100 million, and 49 percent at $1 billion.
3. Capital gains and dividends will be taxed as ordinary income.
4. The deductibility of all itemized deductions will be capped at the 28 percent rate.
5. The estate tax will have a $2.5 million exemption and then a series of progressive marginal rates from 55 to 65 percent.
6. The mortgage-interest tax deduction for second homes is eliminated.
7. There's a financial transactions tax. A couple of corporate income tax deductions are eliminated. There's a kind of too-big-too-fail tax on banks more than $50 billion in assets.
8. There's a $25 per-ton carbon tax.
9. There are also a lot of spending-side measures here. Medicare will reduce its payment rates to pharmaceutical companies down to the Medicaid level. A strong public option will bring down spending on Affordable Care Act exchange subsidies. The use of bundled payment procedures is going to be accelerated as will the Affordable Care Act state waiver process.
10. Base Pentagon spending is reduced to 2006 levels, and farm subsidies for commodity crops are reduced.
11. This is all counterbalanced by some new fiscal stimulus spending in the short-term, and by a medium-term vision that entails a level of nonmilitary discretionary spending that's close to the historical level rather than far below it as envisioned by current policies. http://www.slate.com/...
How do folks feel about these numbered proposals, pro or con, or with (needed) additional detail? If the comments are robust, maybe I can break each one out for further discussion. Because we need to start developing a more concrete agenda rather than passively waiting for a bland platform calculated only not to offend.
So, please, comment away . . .