Friday, April 15, 2011

What the Budget ought to look like

I complain a lot about the budget and the cuts for seniors and the poor.  Well here is a budget we should all subscribe to if we truly dwell in the Kingdom of God.

Progressive Caucus People's Budget FY12 Memorandum

Eliminates National Deficit by 2021

Progressive Caucus co-chairs Raúl M. Grijalva and Keith Ellison sent a memo to House Budget Committee Ranking Member Chris Van Hollen April 6 outlining the Caucus' top budget priorities. The letter and attached budget information are available at this link. An op-ed by Dr. Jeffrey Sachs of Columbia University endorsing the People's Budget is available at this link (off-site).
The CPC proposal:
• Eliminates the deficits and creates a surplus by 2021
• Puts America back to work with a “Make it in America” jobs program
• Protects the social safety net
• Ends the wars in Afghanistan and Iraq
• Is FAIR (Fixing America’s Inequality Responsibly)

What the proposal accomplishes:
• Primary budget balance by 2014.
• Budget surplus by 2021.
• Reduces public debt as a share of GDP to 64.1% by 2021, down 16.5 percentage points from
a baseline fully adjusted for both the doc fix and the AMT patch.
• Reduces deficits by $5.6 trillion over 2012-21, relative to this adjusted baseline.
• Outlays equal to 22.2% of GDP and revenue equal 22.3% of GDP by 2021.

                                                                                Overview of The Policies
                                                                                Individual Income Tax Policies
• Allow the Bush-era tax cuts to expire at the end of 2012, but extend marriage relief, credits, and
    incentives for children, families, and education
• Immediately rescind the upper-income tax cuts in December’s tax deal
• Index the AMT for inflation for a decade (the AMT patch is fully paid for)
• Schakowsky millionaire tax rates proposal (adding 45%, 46%, 47%, 48%, and 49% top rates)
• Tax all capital gains and qualified dividends as ordinary income
• Progressive estate tax (Sanders’ estate tax, repeal of Kyl-Lincoln)
• Limit the rate at which itemized deductions can reduce tax liability to 28%for high earners
• Replace the tax exclusion for interest on state and local bonds with a subsidy for the issuer
                                                                                Corporate Tax Reform
• Tax U.S. corporate foreign income as it is earned
• Eliminate corporate welfare for oil, gas, and coal companies
• Enact a financial crisis responsibility fee
• Financial speculation tax (derivatives, foreign exchange)
• Reinstate Superfund taxes
                                                                                Health Care
• Enact a public option
• Negotiate Rx payments with pharmaceutical companies
• CMS program integrity and other Medicare and Medicaid savings in the president’s budget
• Prevent a cut in Medicare physician payments for a decade (maintain doc fix)
    Social Security
• Raise the taxable maximum on the employee side to 90% of earnings and eliminate the taxable
    maximum on the employer side
• Increase benefits based on higher contributions on the employee side
                                                                                Defense Savings
• End overseas contingency operations emergency supplementals starting in Fiscal Year 2013,
    providing $170 billion in FY2012 to fund redeployment, while saving more than $1.8 trillion
    from current law spending levels over ten years. 
• Reduce baseline defense spending by reducing strategic capabilities, conventional forces,
   procurement, and R&D programs
                                                                Comprehensive Jobs Program
• Invest $1.45 trillion in job creation, education, clean energy and broadband infrastructure,
   housing, and R&D
• Infrastructure bank
• Surface transportation reauthorization bill ($213 billion)5
                                The People’s Budget Eliminates the Deficit Achieves Budget Surplus by 2


Now why in the world would you not support this unless you were a millionaire or a greedy corporation?

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