|Other than everyone else but me?
1. I’d eliminate corporate income tax in it’s entirety, which has a neutral if not negitive impact on the general economy by being passed on to consumers, never to shareholders. CPI will go down and GNP will go up dramatically
2. Reinstate the Federal luxury tax for goods and services above, say, $50 Grand, which when coupled elimination of corporate income tax should have a relatively neutral impact on sensitive industries like yacht building.
3. Find the progressive curve. I’m no economist, but there is an incremental curve representing a range of the percentages of income taxed which, at its zenith for the highest income bracket, will result in diminished returns/revenue. You can maximize revenue either to the point where current expenditures are met and/or revenue begins to diminish.
The actual numbers are merely a hunch on my part, but if my guess is right, the curve should be steeper than it is now, with the middle class rates remaining substantially where they are or only slightly higher, but with higher income groups — who not only are better able to pay a larger “fair share,” but also have more investment vehicles to shelter additional income — paying at either Clinton era if not Reagan era rates with no decrease either to revenue or national productivity.
Its a pro-growth prpgressive system which should also attract foreign investment in more American companies instead of buying our debt in the form of treasury notes. I’d rather have the Chinese having a financial impact on GE instead of USA, wouldn’t you?
Sure, this sounds like the usual “eat the rich” stuff from the left, but there are a lot more of us than them. If you’ve been lucky enough and worked hard enough to reaped the benefits of our system, you have a greater responsibility to make sure the system contuinues to work well and in a socially responsible manner.
Just because we are capitalists does not mean we must act like we live in the jungle. I’ve seen enough “trickle down” supply-side voodoo resulting in greater class disparity, increased poverty rates, wage stagnation and uninsured, to know it’s crap. GNP is no real measure of a nation’s sucess, rather you must look to quality of live which only increases for the top tier and remains flat or diminishes for the middle and lower classes in the current economic model.
The real elephant in the room, however, is health care. Without a dramatic, bold, top to bottom restructureing of the way we handle the medical industry, it will remain a drag on the economy. a black hole for tax dollars, and demonstrably ineffective for so many and completely unavailable for 41 million Americans.
You don’t fix that, then tax policy is just playing games.