www.policymattersohio.org

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Policy Matters Ohio  
Instructions for the Super Committee
a balanced approach to debt reduction That does
not increase poverty or inequality
Wendy Patton [phone] wpatton_at_policymattersoh
io.org
www.policymattersohio.org  
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Federal revenues and expenditures over time as a
percent of the economy (gross domestic product),
1940 - present
Source Policy Matters Ohio, based on Office of
the Budget Historical Tables, Table 1.3 Summary
of Receipts, Outlays, and Surpluses or Deficits
(-) in Current Dollars, Constant (FY 2005)
Dollars, and as Percentages of GDP 19402016
3
cbpp.org
4
cbpp.org
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Options to raise revenues over time

• 1.    Enact a financial speculation
  tax                                   Up to
  1.3trillion1
• 2.    Repeal the (upper income) Bush tax cuts 
                      629 billion2
• 3.    Tax capital gains and dividends like
  income                  Up to 950 billion3
• 4.    Enact a wealth surtax                       
                                Up to 748
  billion4
• 5.    Return the estate tax to 2001 levels
                                280 billion5
• 6.    Limit Home Mortgage Interest Deduction
                  to primary
  residence   12 billion6
• 1 Citizens Commission on Jobs, Deficits, and
  Americas Economic Future, Institute for
  Americas Future, pg. 26
• 2 Investing in Americas Economy, Our Fiscal
  Future, pg. 35
• 3 The Responsible Path Towards Investing in
  America, Congressional Black Caucus, pg. 2
• 4 The First Step, Center for American Progress,
  pg. 16
• 5 The Peoples Budget,  Congressional
  Progressive Caucus, pg. 9
• 6 Investing in Americas Economy, Our Fiscal
  Future, pg. 33

Source OMB Watch
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Options to raise revenues (continued)

• 7.    Enact a financial crisis responsibility fee
  (.15 of financial institutions liabilities for
  entities over 50 billion) 90
  billion7
• 8.    Eliminate the deferral of income from US
  controlled foreign subsidiary corporations (tax
  US corporate foreign income as it is earned)
  114 billion8 
• 9.    Eliminate itemized deductions for those
  making over 200,000 a year  410
  billion9
• 10.    Enact a carbon tax/ cap trade
  tax                            Up to 846
  billion10
• 11. Raise the gas tax Up to 600
  billion11 
• 7 Investing in Americas Economy, Our Fiscal
  Future, pg. 40
• 8 Reducing the Deficit Spending and Revenue
  Options, March 2011, Congressional Budget Office,
  pg. 186
• 9 Living Within Our Means and Investing in the
  Future The Presidents Plan for Economic Growth
  and Deficit Reduction, Office of Management and
  Budget, pg. 47
• 10 Investing in Americas Economy, Our Fiscal
  Future, pg. 38
• 11 Investing in Americas Economy, Our Fiscal
  Future, pg. 42
•            

Source OMB Watch
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Percentage change in after-tax income by income
grouping, 1979-2007
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Trends in wages by income grouping
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Share of income growth captured by top 1
compared to bottom 90
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(No Transcript)
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Trends in sources of federal receipts as a
percent of the economy (gross domestic product)
12
cbpp.org
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Critical principles for the Super Committee

• Take a balanced approach to debt reduction
• Balance the 900 billion already cut with
  revenues.
• 2) Do no harm
• Do not make poverty worse or inequality deeper