Tax Jujitsu: Why Democrats Should Propose a “People’s Tax Cut”

[nashville_brook]

http://robertreich.org/post/1004761998/tax-jujitsu-why-democrats-should-propose-a-peoples


Tax Jujitsu: Why Democrats Should Propose a “People’s Tax Cut”


TUESDAY, AUGUST 24, 2010


(snip)


Democrats should propose eliminating payroll taxes on the first $20,000 of income, and making up the revenue loss by applying payroll taxes to incomes above $250,000. This would give the economy an immediate boost by adding to the paychecks of just about every working American. 80 percent of Americans pay more in payroll taxes than they do in income taxes. And because lower-income people would get most of the benefit, it’s likely to be spent.

It would also give employers an extra incentive to hire because they’d save on their share of the payroll tax. And most of the incentive would be directed toward hiring lower-income workers – who have taken the biggest hit on jobs and pay during the recession.

It wouldn’t add to the deficit. Lost revenues would be made up by applying payroll taxes to income exceeding $250,000. This is certainly fair. As it is now, the Social Security payroll tax doesn’t apply to any income over $106,000. Having the tax kick in again at $250,000 would draw on the top 3 percent of earners, who (as noted) now rake in a larger portion of total income than they have in more than 80 years.

Call it the People’s Tax Cut, and let Republicans explain why they’re against it.

[Canuckistanian]

1. No, call it a "Worker's Tax Cut"

I think it would be much more descriptive.

[maxsolomon]

5. & we could get all the workers in the world to unite!

no backpedaling with the bush tax cuts. just let them die.

[maxsolomon]

6. doop

[Poboy]

10. You ALMOST have it.

Actually you DO have it, but here nowadays we need to add a little more.

Lets call it "The American Worker Tax Freedom Act" .

[maxsolomon]

11. the word "tax" can't be in it - sets people off

"the american freedom act"?

[Poboy]

12. You might be right. We can drop that.

"The American Freedom Act"

That has a benefit that strips away all actual description, but sends those emotions to SOARING!

Patriot Act be damned, but how can you top American Freedom?!


"Are you sir against American Freedom?!!!!"

[Statistical]

25. These days they usualy put 2 (or more) "good" words in the bill title (double plus don't you know).

For example the Stimulus bill wasn't just the American Recovery act or even the American Reinvestment act. Not sir it was the American Recovery AND Reinvestment Act of 2009.

So I would modify it to the "American Freedom and Prosperity Act of 2010".

If someone votes against it you ask..... Which do you hate, freedom or prosperity.

[nashville_brook]

14. yes, but "tax-cut" are happy words when put together.

[maxsolomon]

24. The American Freedom Tax-Cut Act

by jove, i think we've got it.

HIRE US, CONGRESS!

[Canuckistanian]

18. OK

A little wordy, but good.

[kratos12]

2. A simple to understand, highly populist, homerun of a plan

Help the economy while actually helping the people.

Love it.

Obama, Pelosi and Reid should be on TV tonight announcing this, it would win them seats in November.

[ljm2002]

3. Excellent idea!

They won't do it, of course.

Any phrase with "The People" in it will be avoided like the plague.

The days of populist leaders who roused the rabble and fought for them seem to be over for the time being. In their place we have faux-populist movements like the Tea Baggers, and faux-Democrats who fall all over themselves to shaft the middle class (NAFTA, etc.).

Sad.

[DirkGently]

4. I likee. Populism is in the air.

[phantom power]

7. There are a million things like this the Dems *could* do

But they won't.

x(

[nashville_brook]

9. this one would be sooooo easy. shooting fish in a barrel, and all that.

[proud patriot]

8. awesome idea

:-)

[nashville_brook]

13. maybe someone will run with it. Grayson, perhaps?

[Barack2theFuture]

15. K&R

the republicans will come up with some rationale for "no," but what makes you think the democrats would find enough votes in the Senate? They are still short of that magic 101 votes needed to pass legislation.

[gort]

16. Robert Reich had this idea in December 2009

http://robertreich.blogspot.com/


excerpt:

Wednesday, December 02, 2009
Worrisome Thoughts on the Way to the Jobs Summit


"A one-year payroll tax holiday on the first, say, $20,000 of income – which would quickly put money into peoples’ pockets and simultaneously make it cheaper for businesses to hire because they pay half the payroll tax. And a WPA style program that hires jobless workers directly to, say, insulate homes."

[nashville_brook]

19. iirc Gore was hip to this idea too

[JerseygirlCT]

17. It would be really fun to watch the GOP squirm

trying to decry this extra gov't spending while at the same time, demanding extra gov't spending for tax cuts for the wealthiest.

[Motown_Johnny]

20. K+R

[BeFree]

21. Simply beautiful

The beauty is in the simplicity.

Did I mention how simple this would be and how beautiful it would look?

[BeFree]

22. kick for beauty

[blindpig]

23. Nice idea but it ain't gonna happen, no way in hell.

You must be forgetting who runs this country, it ain't 'we the people'.

Like single payer, discussion would be nipped in the bud.

Also, that '250' number cuts right into the upper middle class, who are the among the Dems most loyal supporters at this point.