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| Re: Republican Tax Plan (762457) | |||
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Re: Republican Tax Plan |
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Posted by SMAZ on Thu Apr 7 20:57:55 2011, in response to Re: Republican Tax Plan, posted by Charles G on Thu Apr 7 10:58:50 2011. The main budget becomes mostly balanced the moment the economy turns to normal, the wars wind down and tax cut on the top 2% expires.Most of the deficit is driven by those three factors (that is extra spending because of high unemployment/poverty as in UI and food stamps, the wars, and tax cuts for the rich, depressed revenue because of a shaky economy). I would then start running large surpluses by freezing the discretionary budget (including defense but excluding education which is investment) for the next five years. It would only increase at half of inflation for the five years after that. Infrastructure needs would be met with a two penny a year increase in the gas and diesel tax for nine years. The tax increase on the rich would be a payroll tax instead of income tax. The money would help pay down the SS trust fund so that general borrowing would not be needed. The employer portion would start at $400,000 at 3.1% and frozen leaving a doughnut hole between %108,000 and $400,000 a year that would gradually close. The 28% income tax bracket would be reduced to 25% with the balance also going to SS. A commission to eliminate all unnecessary corporate welfare (in both spending and in the tax code) would be established in the same manner as BRAC. Medicare payroll tax would be imposed on all income. Medicare and Medicaid spending would also only rise at the level of inflation. To make it up to doctors, any doc or hospital, nursing home, etc who makes more than 60% of its revenue from public health programs could enter into a government run malpractice insurance program capping damages for malpractice. Medicare Part D would purchase drugs at the same prices as the VA. Farm subsidies would be eliminated except in emergencies and then as an insurance program, not an entitlement. Foreign aid would be curtailed. Defense spending would gradually return to 2003 levels as a % of GDP to make room for homeland security, VA, law enforcement and other priorities in the frozen discretionary budget. My above plan would be running record surpluses within five years if the economy has returned to normal by then. |
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