Monday, December 06, 2010

Taxes and deficits.

The tax extension forced by the Republicans will make the deficit problem worse.  Republicans claim that they want to cut the deficits, but what they have done is increase the deficit to give millionaires a tax cut.
The two deficit commissions have begun a consideration of the growing national debt.  It is important to notice what they have not considered.  The Simpson-Bowles group actually proposed to cut taxes on the corporations while cutting benefits to social security and other programs.
            There are alternatives.  First, the Congress  should restore the Clinton era tax levels on millionaires, the top 2% of the nation.  Republicans have said no and have blocked unemployment benefits to force their way.  It seems that the Obama Administration has given in.  Note.  The Democrats  did not have the votes in the Senate to win.  Losing elections has a cost. 
 The Economic Policy Institute has developed a balanced fair plan that does not tax the middle class while giving tax breaks to the rich.  And they note, as most agree, social security is not in crisis. (http://www.epi.org/publications/entry/investing_in_americas_economy/)
            Another alternative would be to establish a 2% sales tax on stocks, bonds, and securities.  You and I pay 8% sales tax in the county while the “dealers” on Wall Street pay no sales tax.  Such a  tax would quickly reverse our debt problem.  It would tax the very people who created the financial crisis 
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