www.policymattersohio.org 

Policy Matters Ohio 

Instructions for the Super Committee:

a balanced approach to debt reductionThat does not increase poverty or inequality

Wendy Patton(614)221-4505

wpatton@policymattersohio.org

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: 1940–2016

cbpp.org04/20/23 3

cbpp.org04/20/23 4

Options to raise revenues over time

1.    Enact a financial speculation tax                                   Up to $1.3trillion [1]

2.    Repeal the (upper income) Bush tax cuts                      $629 billion [2]

3.    Tax capital gains and dividends like income                  Up to $950 billion [3]

4.    Enact a wealth surtax                                                     Up to $748 billion [4]

5.    Return the estate tax to 2001 levels                               $280 billion [5]

6.    Limit Home Mortgage Interest Deduction                 to primary residence   $12 billion[6]

[1] Citizens’ Commission on Jobs, Deficits, and America’s Economic Future, Institute for America’s Future, pg. 26[2] Investing in America’s 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 People’s Budget,  Congressional Progressive Caucus, pg. 9[6] Investing in America’s Economy, Our Fiscal Future, pg. 33

Source: OMB Watch

Options to raise revenues (continued)7.    Enact a financial crisis responsibility fee (.15% of financial institution’s

liabilities for entities over $50 billion) $90 billion[7]

8.    Eliminate the deferral of income from US controlled foreign subsidiary corporations (tax US corporate foreign income as it is earned)

$114 billion[8] 

9.    Eliminate itemized deductions for those making over $200,000 a year  $410 billion[9]

10.    Enact a carbon tax/ cap & trade tax                            Up to $846 billion[10]

11. Raise the gas tax Up to $600 billion[11] 

[7] Investing in America’s 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 President’s Plan for Economic Growth and Deficit

Reduction, Office of Management and Budget, pg. 47[10] Investing in America’s Economy, Our Fiscal Future, pg. 38[11] Investing in America’s Economy, Our Fiscal Future, pg. 42

           Source: OMB Watch

Percentage change in after-tax income by income grouping, 1979-2007

Trends in wages by income grouping

Share of income growth captured by top 1% compared to bottom 90%

Trends in sources of federal receipts as a percent of the economy (gross domestic product)

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Critical principles for the Super Committee

1) 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