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Today’s Chart: A simple way to reduce the deficit?

October 7, 2018

CBO_tax_expenditures_panel_v1

As near as I can make it out from reviewing these graphs, merely by putting caps on the amount that can be deducted for health insurance and pensions (the gold-plated pension plans that seem to benefit the wealthy more than the rest of us and therefore are unfair) as well a modest increase in the unearned income tax rates (capital gains rates are exclusively a subsidy for the wealthy with little or no economic justification — what would people who must pay a little more tax on certain investment income do with their money, bury it in the sand?) would substantially reduce the deficit or provide funds for governmental programs such as education or infrastructure maintenance and development. I figure this would produce an increase in revenues of somewhere between $100 -$200 billion per year.

Note: Additional reasonable changes to the 2017 tax bill, including returning the income taxes on the top income brackets to what it had been prior to 2017 could also substantially increase revenues.

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