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View Diary: Open thread: Success in California, and what's next for Puerto Rico (42 comments)

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  •  what President Obama should propose... (4+ / 0-)
    Recommended by:
    divineorder, Lujane, Uthaclena, Candide08

    Instead of proposing a return to Clinton-era taxes (with a top rate of about 38%) he should propose a new top  rate of 48%).  

    Here's why:  the obscenely wealthy were promised temporary tax relief, with a sunset provision built in.  There is no disputing this; it is factual.  

    So, like all things that are temporary, the Bush rates must come to an end.   And now the obscenely wealthy must pay back the extra money they were allowed temporarily.  

    They've already had use of that money for 10 years, they've had its purchasing power, its interest-bearing ability and its investment potential, and they had the chance to increase its initial value by significant multiples.  

    Now, they can repay the principal they borrowed temporarily and still realize an enormous profit on the amount lent to them, temporarily, 10+ years ago.  

    Try as they might, they cannot refute the logic of this.  They had a loan, pure and simple, and they always knew the "tax relief" was temporary.  If they made a profit, good for them.  If they used the money as intended, creating new jobs, they may well have pulled in extra revenues as a result of their increased sales force or research team.  It was up to them to use the money wisely.

    Now, they must repay the principal, without the interest it would have accrued if the government had invested it.  They will have (or could have) positioned themselves for a better future, and now it is time for the government to use the taxpayers' money -- the amount originally loaned to the obscenely wealthy, temporarily -- for the permanent benefit of the 99%.  

    It is really that simple.  The debt Mr. Bush ran up can be whittled away over time once America again has full use of its assets.  

    And, by the way, President Obama should also point out that Social Security can be "saved" by removing the cap entirely.  If 100% of the lowest wage earner's salary is subject to Social Security deductions, 100% of the highest wage earner's salary, too, must be subject to Social Security deductions of 100%  

    Finally, because I have solved all the country's economic challenges and because I will not accept a salary for contributing the solution, the nation can save additional monies, clawing back the salary and benefit costs that have been paid to Mr. Geithner and others who failed in coming up with a solution, although they took money for doing nothing.  

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