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
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
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