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View Diary: Senate Democrats to produce budget seeking new revenue without threat of filibuster (80 comments)

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  •  I wonder what taxing capital gains (1+ / 0-)
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    as ordinary income would raise?

    And eliminating the SSI cap on income would fix it permanently.

    It would be a shock, but how much would we have to raise Medicare to fully fund it?

    Even Democrats can be asses. Look at Rahm Emanuel.

    by Helpless on Mon Jan 21, 2013 at 05:56:07 PM PST

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    •  it would raise very little, (1+ / 0-)
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      as people would just stop selling stocks, which is historically what has happened.

    •  Helpless - in the short term revenue would decline (0+ / 0-)

      When capital gains tax rates are high people keep their appreciated capital assets and borrow against them. When rates are low they sell their appreciated capital assets and reinvest. Historically when rates rise we see a dip in federal capital gains tax revenues.

      "let's talk about that"

      by VClib on Tue Jan 22, 2013 at 09:12:46 AM PST

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    •  Helpless - there is a reason for the SocSec cap (0+ / 0-)

      Social Security is wage insurance where you insure a portion of your wages through the contributions you and your employers make. Above some level there is no need for high income earners to insure their wages or salaries. SocSec is not an income redistribution program. It was designed very specifically by FDR to NOT be a program to redistribute income from high income earners to low income participants. Increasing the cap to capture 90% of all wages and salaries (about $190K) makes sense, and allowing the top benefit to rise accordingly. Eliminating the cap would fundamentally change SocSec as we know it.

      "let's talk about that"

      by VClib on Tue Jan 22, 2013 at 09:18:03 AM PST

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