Transcript Slide 1

Policy Matters Ohio
Instructions for the Super
Committee:
a balanced approach to debt reduction
That does not increase poverty or inequality
Wendy Patton
(614)221-4505
[email protected]
www.policymattersohio.org
Federal revenues and expenditures over time as a percent
of the economy (gross domestic product), 1940 - present
Source: Policy Matters Ohio, based on Office of the Budget Historical Tables, Table 1.3— Summary of
Receipts, Outlays, and Surpluses or Deficits (-) in Current Dollars, Constant (FY 2005) Dollars, and as
Percentages of GDP: 1940–2016
7/20/2015
3
cbpp.org
7/20/2015
4
cbpp.org
Options to raise revenues over time
1.
Enact a financial speculation tax
Up to $1.3trillion[1]
2.
Repeal the (upper income) Bush tax cuts
$629 billion[2]
3.
Tax capital gains and dividends like income
Up to $950 billion[3]
4.
Enact a wealth surtax
Up to $748 billion[4]
5.
Return the estate tax to 2001 levels
$280 billion[5]
6.
Limit Home Mortgage Interest Deduction
to primary residence
$12 billion[6]
Citizens’ Commission on Jobs, Deficits, and America’s Economic Future, Institute for America’s Future, pg. 26
Investing in America’s Economy, Our Fiscal Future, pg. 35
[3] The Responsible Path Towards Investing in America, Congressional Black Caucus, pg. 2
[4] The First Step, Center for American Progress, pg. 16
[5] The People’s Budget, Congressional Progressive Caucus, pg. 9
[6] Investing in America’s Economy, Our Fiscal Future, pg. 33
[1]
[2]
Source: OMB Watch
Options to raise revenues (continued)
7.
Enact a financial crisis responsibility fee (.15% of financial institution’s
liabilities for entities over $50 billion)
$90 billion[7]
8.
Eliminate the deferral of income from US controlled foreign subsidiary
corporations (tax US corporate foreign income as it is earned)
$114 billion[8]
9.
Eliminate itemized deductions for those making over $200,000 a year
$410 billion[9]
10.
Enact a carbon tax/ cap & trade tax
Up to $846 billion[10]
11.
Raise the gas tax
Up to $600 billion[11]
Investing in America’s Economy, Our Fiscal Future, pg. 40
Reducing the Deficit: Spending and Revenue Options, March 2011, Congressional Budget Office, pg. 186
[9] Living Within Our Means and Investing in the Future: The President’s Plan for Economic Growth and Deficit
Reduction, Office of Management and Budget, pg. 47
[10] Investing in America’s Economy, Our Fiscal Future, pg. 38
[11] Investing in America’s Economy, Our Fiscal Future, pg. 42
[7]
[8]
Source: OMB Watch
Percentage change in after-tax income by
income grouping, 1979-2007
Trends in wages by income grouping
Share of income growth captured by
top 1% compared to bottom 90%
Trends in sources of federal receipts as a percent of the
economy (gross domestic product)
7/20/2015
cbpp.org
12
Critical principles for the Super
Committee
1) Take a balanced approach to debt
reduction:
Balance the $900 billion already cut with
revenues.
2) Do no harm:
Do not make poverty worse or inequality
deeper