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View Diary: Obama has done nothing to address income inequality. Right? (483 comments)

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  •  It is good that the !%er marginal.. (4+ / 0-)
    Recommended by:
    emal, tardis10, Ian Reifowitz, Dallasdoc

    ..rate is increasinf 4.6 points, but Dallasdoc has identified a real blind spot in many/most Dems - The Progressive Caucus

      Raul Grijalva and the Progressive Caucus has come out with several budgets that not only put joblessness first in line but has been analyzed by the EPI:

    A technical report on the Congressional Progressive Caucus budget for fiscal year 2013
    http://www.epi.org/...
    Budget for all pdf:
    http://grijalva.house.gov/...
    Budget of the Congressional Progressive Caucus
    Fiscal Year 2013

    http://cpc.grijalva.house.gov/...

    With Many options  for raising revenue in a smart and progressive manner

     

    ♦ Reform current income tax rates, create additional brackets for top earners, and tax capital gains as ordinary income ($1.6 trillion). These reforms would raise substantial sums of revenue and make the tax code fairer and more progressive, without unduly restraining economic growth.

     ♦ Tax carried interest as ordinary income ($21 billion). This would close a loophole that almost exclusively benefits the very wealthy and that lowers the effective tax rates of millionaires and billionaires below those of middle-class households.

     ♦ Eliminate the loophole allowing the wealthy to avoid paying taxes on inherited stocks and bonds ($452 billion). Closing this loophole would raise substantial sums of revenue and pave the way for capital gains to be taxed at a higher, revenue-maximizing rate.

     ♦ Cap the marginal tax rate on itemized deductions ($513 billion). Limiting the rate at which itemized deductions reduce filers’ tax liability would raise revenue, increase fairness and progressivity in the tax code, help mitigate income inequality, and improve efficiency.

     ♦ Pursue international corporate income tax reform, including repealing deferral of foreign profits ($606 billion). This would target U.S. multinational corporations that engage in convoluted transactions to avoid paying corporate income tax. Such reforms would raise revenue as well as reduce incentives for firms to move and keep operations and profits offshore.

     ♦ Enact a progressive estate tax ($160 billion). The estate tax, which targets large transfers of wealth bequeathed to heirs, is the most progressive element of the federal tax code. This reform would instate a more-progressive rate structure closer to what existed prior to the Bush-era tax cuts.

     ♦  Enact a financial transactions tax ($830 billion). A small levy on Wall Street trading of financial instruments would raise significant revenue and dampen high-speed trading, while also encouraging more-productive investment.
     ♦  Enact a carbon tax ($943 billion). Pricing carbon through either a carbon tax or the auctioning of pollution permits would lead to the reduction of greenhouse gases and yield significant revenue.

    If the progressive caucus was the 'go to' caucus this could go from being set aside as a wish list to being the stated/standard that Dems pursued. The baseline for negotiations

    With a tax rate schedule looking more like this:

    45 percent bracket starting at taxable income above $1 million;

    a 46 percent bracket at taxable income above $10 million;

    a 47 percent bracket at taxable income above $20 million;

    a 48 percent bracket at taxable income above $100 million; and

    a 49 percent bracket at taxable income above $1 billion.22 Across this modified rate structure, the budget would also tax all capital gains and dividends as ordinary income.

    The collective impact of these policies—raising taxes on households with AGI above $200,000 ($250,000 for joint filers), extending refundable credits, adding five additional high-income brackets, and equalizing treatment of investment and labor income—would generate $1.2 trillion over FY2014–2023 relative to current law.23

    Start with an even more progressive tax rate schedule (add 15% on top of all these figures) - these rates above would then  be the 'compromise' after the heads exploding from the right failed to get the results the anti-tax proponents desired.

    Also: to push back on the republicans false meme of "redistribution of wealth" - one of the most foul lies..

    Jared Bernstein @ CBPP  uses a term that defeats the carefully crafted GOP spin (lie) on wealth "distribtution " - the big "socialist/liberal" evil - by using the term primary distribution of wealth

    How wealth is stolen by the 1%ers in addition to tax loopholes, skimming wealth right off the top first. And to cover this systematic pre-tax theft the GOP has long used a Frank Luntzish rewording - "redistrbution" of wealth as though the extractors (1%ers) who have done the skimming in the first place are being ripped off by having to pay taxes at all.

    Thx Ian Reifowitz - good to see the positives happening

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