No. of Recommendations: 3
Taking this in reverse order:
Defund the Police was never popular among the electorate. Social Security and Medicare are.It was popular enough to get blue electorates to go along with it. But that's not the point. The point is it was
popular until it wasn't and the sell-by date on how popular it was happened to be the day all these people felt the impact on their daily lives.
I didn't say just on Elon Musk and Jeff Bezos. I said going back to the pre-2001 tax regime, which would undo the Bush and Trump tax cuts - which disproportionately benefited not merely the Musks and Bezoses (Bezi?) of the world, but the top 20% in general. You could get nearly all the money you need to right the ship and keep it an 80/20 issue.And that's not nearly enough. It's time to look at the actual math, actual US tax rates, and what it would take from here on out to bring down the deficit. We won't bake in growth rates on the entitlement programs along the way because that makes it all the more depressing.
1. How much money does raising the top marginal rate to 39.6% raise?You're going to get ~$20-50 billion per year. Tops. That's a drop in the bucket compared to closing a $1.7T+ gap year on year. You could even seize every dime of paper wealth that Elon Musk has and it still wouldn't cover it.
So you need to drop into the lower brackets. 2. What would theoretical tax brackets look like to close the deficit all the way to zero? Or something "acceptable" like $200B per year?Bracket | Current Tax Rates | New, required rate (+16% to all brackets)
Lowest 10% --> 26%
Middle 12/22/24% --> 28/40/42%
Upper 32/35% --> 48%/51%
Top 37% --> 53%To get it down to $200B/year you're looking at merely upping every single bracket by 15 points.
I'll summarize and quote
Full Metal Jacket at the same time:
This is a sh1t sandwich and we're all going to have to take a bite. Multiple bites, in fact.
This is the math. After you've done this and you've pulled 10% of the US GDP out of the economy, smashed small businesses and radically reduced consumer spending, how "popular" is everything going to be?
Not very.
Math always wins in the end. It's a fine thing to chant along with AOC
Don't tax you
Don't tax me
We'll tax the rich man behind the tree!...but it's not enough.
Major source:
crfb.org - Options reducing revenue loss tcja extension