Common sense tax prescriptions
The good people at Next New Deal are releasing a series of articles that explain in easy-to-understand terms the kinds of policies the Obama administration ought to pursue in its second term in order to restore prosperity and shrink the gap between haves and have nots.
Yesterday, in one of the better ones, Mark Schmitt spells out three principles for restoring progressive taxation that are worth your time to consider.
“Our current tax system is a toxic legacy of the George W. Bush years. It loomed over Obama’s first four years, bearing deficits that limited the scope of economic stimulus, drove inequality to astonishing levels, and led directly to the debt limit showdown of the summer of 2011 that forced us into even more dangerous policies. President Obama’s second term offers a long overdue opportunity to restore the promise of progressive taxation and revenues that are adequate to our long-term economic priorities. It requires both short-term and long-term action.
The greatest failure of the tax system is not that it’s too complicated or inefficient or that there are too many “special-interest loopholes,” as House Speaker John Boehner put it on the day after the election. It’s that it doesn’t raise enough money and it encourages all sorts of manipulation because of the differential rates for investment income and income from work. These are not things that developed over time, as if by some natural process – they are the product of specific decisions made in 2001 and 2003 by Republican-controlled Congresses that used the budget reconciliation process to avoid any bipartisan compromise.
Here are some principles that the administration should hold to in restoring adequate and progressive taxation….”
Read the rest of the article by clicking here.