Title: www.policymattersohio.org
1Policy 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 wpatton_at_policymattersoh
io.org
www.policymattersohio.org
2Federal 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 19402016
3cbpp.org
4cbpp.org
5 Options to raise revenues over time
- 1. Enact a financial speculation
tax Up to
1.3trillion1 - 2. Repeal the (upper income) Bush tax cuts
629 billion2 - 3. Tax capital gains and dividends like
income Up to 950 billion3 - 4. Enact a wealth surtax
Up to 748
billion4 - 5. Return the estate tax to 2001 levels
280 billion5 - 6. Limit Home Mortgage Interest Deduction
to primary
residence 12 billion6 - 1 Citizens Commission on Jobs, Deficits, and
Americas Economic Future, Institute for
Americas Future, pg. 26 - 2 Investing in Americas 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 Peoples Budget, Congressional
Progressive Caucus, pg. 9 - 6 Investing in Americas Economy, Our Fiscal
Future, pg. 33
Source OMB Watch
6Options to raise revenues (continued)
- 7. Enact a financial crisis responsibility fee
(.15 of financial institutions liabilities for
entities over 50 billion) 90
billion7 - 8. Eliminate the deferral of income from US
controlled foreign subsidiary corporations (tax
US corporate foreign income as it is earned)
114 billion8 - 9. Eliminate itemized deductions for those
making over 200,000 a year 410
billion9 - 10. Enact a carbon tax/ cap trade
tax Up to 846
billion10 - 11. Raise the gas tax Up to 600
billion11 - 7 Investing in Americas Economy, Our Fiscal
Future, pg. 40 - 8 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 Presidents Plan for Economic Growth
and Deficit Reduction, Office of Management and
Budget, pg. 47 - 10 Investing in Americas Economy, Our Fiscal
Future, pg. 38 - 11 Investing in Americas Economy, Our Fiscal
Future, pg. 42 -
Source OMB Watch
7Percentage change in after-tax income by income
grouping, 1979-2007
8Trends in wages by income grouping
9Share of income growth captured by top 1
compared to bottom 90
10(No Transcript)
11Trends in sources of federal receipts as a
percent of the economy (gross domestic product)
12cbpp.org
13Critical principles for the Super Committee
- 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