Photo credit: @julesdwit.
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One take a day on the deficit talks until the Thanksgiving deadline.
Adam Davidson, co-host of Planet Money and new columnist for the New York Times Magazine, discusses the role that corporate taxes play in the deficit negotiations.
Progressive tax simplification :
(1) Treat All Income the Same.
Tax Capital Gains at the same rates at earned income. This will still be progressive for middle class retirees, but will make sure to fix the Buffett anomoly.
(2) Eliminate the income cap on payroll taxes.
(3) Create a 30 % Sales Tax on Intellectual Property.
These three simplifications will raise a major amount of revenue which can beinvested to fix our infrastructure, provide a free university education to all who qualify,provide universal health care coverage (something which would reduce healthcare expenditure anyway), provide relief for people facing foreclosure or drowning in student loans, increase R&D to improve our national competitiveness, and reduce the national deficit.
Other additional strategies :
Provide an extra week of vacation a year -mandating 3 weeks. (We now have less annual vacation than India and China). This will reduce unemployment.
Increase rates for incomes over $1 million.
1 % per annum Asset tax on assets over $10 million.
Reciprocity on Trade.(Imbalances cost us more than 2.3 % additional unemployment per year)
Here's an effective tax :
Large sales tax on all Intellectual Propertygross revenue - (licensing or sales,etc).This sales tax would only be levied on Intellectual Property (copyrighted work,patents, trademarked items). It would not discriminate against US producers because it would tax all IP sold in the US or to US businesses and persons.
Intellectual Property is a Government granted monopoly. It would not exist ina genuinely free market. Businesses whohave been granted these monopolies by the government, and who require government enforcement to protect them, owe society a greater share or their revenue than businesses which do notgain from such government largess.
Right now, most large corporate owners of US IP actively evade US taxes (legally) - by transfering their IP revenues out of the country (examples include GE and Google). A Sales tax on IP would prevent this.
Hm - planet money-man almost slipped up! "Tax the rich - I mean, I'm not advocating that, I mean, um."
Can't make that kind of comment on Fox-lite (I mean NPR).
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The tax rate may not fix the debt but it would help. We have a tendency in this country to defend or attack individual policies when in fact it is the sum of policies working together, or not, that causes change or movement. So the higher tax rate definitely adds to decreasing the debt. If we go picking off one here and there we eventually end up with doing nothing and getting nothing done.
Can the announcers knock off the "thank you for your service" schtick? We all know they really don't care about military "service." It seems disingenuous - anybody agree?
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