It's the Deficit Dummy? Well, not really!!!!

[Lem1951]

We need to reverse all the Republican tax cuts that have led to this state which includes the huge wealth gap!
1. Reverse the Reagan tax cut from 72% to 28% which created the wealth gap over the last 40 years and created this billionaire class.
At the same time, remove the tax on Social Security benefits that was part of that same bill.
2.Reverse the most recent Repub tax cut - the Trump tax cut which was unnecessary and is helping to create the current deficits with no evidence that it did nothing for the country except increase the billionaire class wealth.
3. Initiate a wealth tax to help reverse the huge wealth gap - the main reason is that our billionaire class by holding onto this wealth actually slow down the economy while they manipulate politics thanks to our Supreme Court.
4. Eliminate the cap on Social Security taxes - that by itself will secure Social Security for decades. If there are concerns for impacting middle class Americans, we can increase the current cap with inflation while initiating the tax on all income over $250,000 until the current cap gets there.

This culture of any tax is bad needs to be buried!
This could allow universal health care benefits.
It could create an solid social safety net which has been shown to pull people out of poverty and into the mainstream of American life.
Just a thought.

[dutch777]

1. Very well said and definitely overdue. Let's also look at corporate welfare reform.

My hope would be that it would be a comprehensive tax overhaul that eliminates the patchwork we have now and comes up with a fairer and simpler system. I have little hope of this getting accomplished given the current environment in DC but for our kids and grandkids sake I really think we need to fix this and get the deficit under control.

[jimfields33]

3. I agree this needs to be done.

But why wait until we don’t have the house? Last year would have been a perfect opportunity to write these type of articles.

[in2herbs]

2. Maybe we should support Sen Scott and other Rs position to sunset all laws but only

if the sunset provisions also include all tax breaks, past and present, that have ever been passed. We'll see how fast the Rs retreat.

[republianmushroom]

4. agree

but good luck doing it.

[SunSeeker]

5. These are all obvious fixes. Which is why Republicans will never vote for them.

They want Social Security to fail, they want the economy to go down.

[wryter2000]

6. I remember when I did our taxes

And my husband's SS wasn't taxable. I was surprised when mine was.

1 and 2 would take care of the deficit.

[wryter2000]

7. A question

Aren't the Trump tax cuts supposed to expire soon? No way will our Senate or President renew them.

[Lonestarblue]

9. Actually they probably will get renewed because the bill was written in such a way to make it

nearly impossible politically to let it lapse. The corporate tax breaks are permanent while the personal tax breaks are the ones elapsing, and many middle income taxpayers got breaks on their taxes, especially those who never itemized deductions. Biden has promised not to raise taxes on anyone earning more than $400,000, but letting these tax breaks lapse would do just that.

Writing a new law to make the corporate breaks lapse while keeping the tax breaks for middle income earners would never pass the House now.

[wryter2000]

15. You're right

Can't let that lapse. Damn it.

[Uncle Joe]

8. Kicked and recommended.

Thanks for the thread Lem.

[keithbvadu2]

10. "Deficits don't matter" said Dick Cheney

What he meant was:::

Deficits don't matter when it is republicans making them.

[peppertree]

11. +1

Also, Cheney was of the opinion that the Fed was a bottomless well - capable of financing any and all fiscal profligacy (especially wars!).

And it is amazing what they were able to later pull off - rescuing the country from 1929-style collapse on the heels of $20+ trillion in Bush-era bad debts (mainly derivatives).

They covered all of that - something most countries can't do by a mile.

But everything has its limits. And God help us if the Fed ever reaches its.

[keithbvadu2]

12. Fire up the printing presses

This one is worth far more as a collectible than it ever was as currency.

[peppertree]

14. Republicans are trying to shatter global faith in the dollar alright

You'll recall that Cheeto raised eyebrows, in his last months in office, by nominating Judy Shelton - a known "gold bug" (gold standard cheerleader) and gold hoarder - to the Fed board.

But the Fed was able to "print" $20 trillion in 2008/09, to cover bad derivatives debts, mostly because the dollar is accepted on sight anywhere in the world regardless of these moves - and because it has no gold standard to constrain it.

Its only real competition is the euro - and the dollar is still preferred three-to-one (hence Trump's interest in Brexit - which was hoped could break up the EU once and for all).

As you illustrated, most other countries don't have this ability: they can "print" money to cover deficits - but only up to a point.

On the other hand, a monetary straitjacket like the gold standard would plummet the country into a deep and lasting depression (FDR got us out, in part, by rescinding it).

So balance, like with so many other things, is indeed the key here: not too tight; not too loose.

[DallasNE]

13. This Can't Be Said Enough

&quot H)olding onto this wealth actually slow(s) down the economy while they manipulate politics thanks to our Supreme Court."

It slows the economy because it slows the velocity of money. And the evil of Citizens United is well documented.

[c-rational]

16. K&R. Bookmarked.