A budget proposal: towards a balanced budget and for the people - the Progressives

[chucky2]

Yes?

snip

LOL, wow! Sig'd...

 

[TheSlamma]

The end of the wars and cuts to defense are very nice to see, I like the work on ridding corporate welfare, would like to see other forms of welfare also gone.

Don't like seeing more contribution to SS while republicans are trying to destroy the whole thing with no refund in their dumb idea.

Agree with ending Bush tax cuts, they are not creating any jobs (in America anyway), but taxing a millionaire 45%? that's absurd. I'm not a pretender like most republicans voters who think one day they will actually make that kind of money, I just don't think anyone should pay that.

 

[soulcougher73]

Oh missed this part:
Eliminates the individual Social Security payroll cap to make sure upper income earners pay their fair share

So 45% of income to the Feds in income taxes and another 6% in SS taxes. So now we are at 51% of your income going to the Federal government.

Add that 8-10% for local and state and if you are a millionaire 60% of your income goes to government.

What a fucking joke! Hey I made a million dollars last year... after taxes I still have $400,000....

While i think 45% is a bit extreme. But yeah $400k must suck. I hate to only have that much per year.

 

[HendrixFan]

They want to increase capital gains taxes by $1 trillion over 10 years...

Anyone have any idea what that will do to the economy?

Stop us from having bubble economies?

 

[PokerGuy]

What on earth makes anyone think that the morons in DC, who've demonstrated over decades of stupidity that they can absolutely never be trusted to spend responsibly, should be handed even MORE trillions to waste? What's to prevent them from simply wasting that money as well? Wouldn't it make more sense to first put in place some sort of mechanism to prevent them overspending, and THEN close the gap?

 

[HendrixFan]

Tell a guy running a small business that makes $1 million a year he now has to fork over and additional $160,000 a year to the government. Do you have any idea what they will do to those type of businesses?

Are you talking about revenue or income? There is a difference you know.

If small business man is able to pay himself $1M a year, then an additional $160k going to the government will not hurt him. One less yacht per year I guess. If the business is pulling in a revenue of $1M per year, then after costs and expenses the net profit is/should be somewhere around 15% or $150k. So it would not affect this hypothetical small business man who also happens to fall in the top 1% of all earners.

Do you know what will happen to NYC and its financial center? Kiss it good bye. The rich will leave the country so fast you progressive won't even know what happened. Do you really think you can raise someone's tax rate from 15% to 51% without it having a negative effect on the economy?

The stock market will crash. Investors will flee. The super rich will go looking to make money in other places.

This is the same boogeyman scare tactic the Republicans used when Clinton was pushing his 1993 budget (the one I showed you this past week that was responsible for the largest percentage of the deficit reduction during his 8 years) and they said it would crash the economy further and they wouldn't be responsible for the outcome. Surely you can remember that?

Getting to the actual proposal, the tax increases are nice and all, and sound reasonable. The investment spending sounds good, if done right (as it was done in Clinton's years - 1993 budget included). There don't seem to be enough cuts in the budget though. We are already wasting too much money in so many areas, that needs to be addressed.

The whole thing also ignores our severely downturned economy, and the apparent inflationary tactics they are using to bring up the prices of everything to "balance" against overinflated home values so that they fall in line with the 3X median household income level. Seems like a stupid and painful idea, and I'm not sure how well this or any other budget proposal fares with it going on.

 

[cubby1223]

Oh missed this part:
Eliminates the individual Social Security payroll cap to make sure upper income earners pay their fair share

So 45% of income to the Feds in income taxes and another 6% in SS taxes. So now we are at 51% of your income going to the Federal government.

Add that 8-10% for local and state and if you are a millionaire 60% of your income goes to government.

What a fucking joke! Hey I made a million dollars last year... after taxes I still have $400,000....

While some millionaires are hard-working, productive members of society, most are not. Most deserve to pay higher taxes.

 

[werepossum]

Nothing quite drives home the stupidity of these people like "30 House members fasting for a day to try to get publicity for it."

I think they have a germ of one good idea. I think a case can be made that capital gains, at least short term capital gains, should be taxed the same as earned income as a matter of basic fairness. Why should I be taxed less for putting my money to work than for putting myself to work? The downsides of course are lower tax collections and reduced economic activity as many investments become unattractive at the higher tax rates, and capital flight out of the country.

 

[child of wonder]

I don't think that is the right question. Rather it should be: How many people here would be ok making $1,000,000 and only keeping 40% of what you earned?

Seems to steep to me.

According to my ULTRA conservative cousin, not only should everyone be taxed at the same percentage, but once you reach a certain level of income you should no longer have to pay taxes at all.

He says it's not fair for a rich person, even with a flat tax, to have to pay more dollars in taxes than anyone else.

 

[Fear No Evil]

Answer is in the budget.

So after this budget we won't have any more increases? Everything will be funded? Schools will have enough money, healthcare, medicare, medicaid, etc? All will be well funded and we won't have to blame not enough money again?

 

[MovingTarget]

I like this proposal. It isn't perfect, but it gets us back on track for what used to be the American way. There is a difference between rewarding hard work and individualism while helping your neighbors and rewarding greed.

The reason we are in this mess in the first place isn't some cyclical downturn, but the results of several decades of "trickle-down" economic policies and "starve the beast" fiscal policy. Monied interests make off like bandits, while the average joe has to get a second job to keep the same roof over his head.

 

[BoberFett]

Yes, the beast is certainly starved with only a few trillion dollars per year. /facepalm

Seriously? How long are people going to use that tired phrase? If I was starved for food like the US government is starved for money, I'd weigh 900 lbs.

 

[Doc Savage Fan]

In other news, profjohn goes on ignore.

I'd love to see the size of that Ignore List!

 

[the DRIZZLE]

Raising the marginal rates is by far the worst way we could raise taxes. So I expect that's exactly what Obama will do.

 

[sandorski]

This plan makes too much sense to be supported by Republicans.

 

[blackangst1]

While some millionaires are hard-working, productive members of society, most are not.

You forgot to add "IMHO" at the end of your post.

 

[blackangst1]

According to my ULTRA conservative cousin, not only should everyone be taxed at the same percentage, but once you reach a certain level of income you should no longer have to pay taxes at all.

He says it's not fair for a rich person, even with a flat tax, to have to pay more dollars in taxes than anyone else.

Did you mean to say "a higher percentage"?

 

[Pens1566]

Oh missed this part:
Eliminates the individual Social Security payroll cap to make sure upper income earners pay their fair share

So 45% of income to the Feds in income taxes and another 6% in SS taxes. So now we are at 51% of your income going to the Federal government.

Add that 8-10% for local and state and if you are a millionaire 60% of your income goes to government.

What a fucking joke! Hey I made a million dollars last year... after taxes I still have $400,000....

You'd think that if someone didn't know how our tax system works, they wouldn't comment on it ... oh, wait, its pj. If he was restricted to posting only about things he knows, he'd never make monthly quota. Nevermind.

 

[blackangst1]

A few things that make this budget a pipe dream, not passable, and harmful to the country (besides the huge tax increases):

Because of the added taxes and fees for corporations, it will further drive international corporations off shore.

Cuts in Army forces, Marines, Navy, and Air Force. (Are you fucking kidding me? lol). Well, this WOULD put an end to the wars in the ME.

Although it includes funding for a public health care option, it does nothing to address the COST of health care. Therefore, will increase the fed's obligation far beyond their projections after their 10 year projection.

And the US corporate foreign income taxation is laughable for many reasons, but mostly because it assures this budget wont even get out of commitee. Especially this clause:

The U.S. parent corporation would no longer split domestic and foreign expense activities, so the credit would only be allowed against tax liability to foreign governments. Additionally, because all earnings would be treated identically, the differentiation between active and passive foreign income would no longer matter.

Congratulations progressives. You've once again proven how unrealistic you are. At least we can rest easy knowing that this will never pass. I like many of the progressive's POV, but theyve got, for the most part, their collective heads so far up their asses they make themselves irrelevant.​

Edit: I agree with Megan McArdle's comments from The Atlantic on this budget:

(the budget would increase taxes) to 22.3 percent of the economy, compared with 18.3 percent under the Ryan proposal.

I actually think it's remarkable that the percentage is so low. A 47% federal tax rate on top incomes, plus increases on estates, capital gains, and dividends, and all you get is . . . 22.3% of GDP? A bare 1.3% above the collections envisioned by Simpson-Bowles?

This is nothing but a huge tax and spend budget.

 

[boochi]

Craig, you are a fucking idiot...

He sure is.

 

[kedlav]

I don't think that is the right question. Rather it should be: How many people here would be ok making $1,000,000 and only keeping 40% of what you earned?

Seems to steep to me.

Remember, that's a progressive tax. I know this is incredibly complex, but the bracket would be 40% for money between 1M and 1B. It'd still be 35% up to 1M

 

[dca221]

They want to increase capital gains taxes by $1 trillion over 10 years...

Anyone have any idea what that will do to the economy?

I am quoting PJ, but can someone help answer a question? If raising taxes by $1T would wreck the economy, why would cutting spending by $3T, $2T, or $1T not also wreck the economy?

And if you listen to Boehner and Cantor, cutting the spending would actually boost economic growth and create jobs.

How does that work?

 

[Lithium381]

life liberty and the pursuit of happiness

notice how it doens't specify PERSONAL happiness. it's happiness for everyone. if i work hard every year and make X dollars, i am only entitled to x/2 for myself, the rest goes to our bloated government "for our best interests"

 

[sandorski]

life liberty and the pursuit of happiness

notice how it doens't specify PERSONAL happiness. it's happiness for everyone. if i work hard every year and make X dollars, i am only entitled to x/2 for myself, the rest goes to our bloated government "for our best interests"

Not sure if srs.

 

[Lithium381]

I am quoting PJ, but can someone help answer a question? If raising taxes by $1T would wreck the economy, why would cutting spending by $3T, $2T, or $1T not also wreck the economy?

And if you listen to Boehner and Cantor, cutting the spending would actually boost economic growth and create jobs.

How does that work?

I'll explain how it helps the economy. Cutting taxes:

I earn $1000 per month. If i get taxed 20%, i come out net 800 for myself. my rent is $300 / month. Gas is $200 / month. I now have $300 "disposable income"

if we were to lower taxes, your disposable income would increase and you could have more money to spend in the economy. the problem is now people don't have any disposible income and only buy what they need and hang on to the rest for a rainy day.

cutting spending in the government reduces the necesity to collect 50% of the hardworking americans income and give 50% of that to the poor and then keep the rest for themselves