What we have here is a revenue crisis, not a deficit crisis.

[deminks]

http://www.dailykos.com/story/2011/06/25/988402/-New-Framing:-It-is-a-Revenue-Crisis,-Not-Budget-Crisis?via=siderec

(snip)

This diary focuses on what I consider two very important themes brought out in that panel discussion. First, we are not in a budget crisis, but a revenue crisis. The current enormous federal and state budget deficits aren't the result of overspending, but are the end result of the wealthy and corporations avoiding and lobbying against paying their fair share of taxes. Second, we need to focus less on economic statistics and more on the real life human impact of economic policy. Third, the increased corporate funding of our elections will require progressives to get more bang for the buck sometimes using good alternative media.

I heard that, and my first thought was maybe the media's incessant use of the terms "budget crisis" and "budget deficit" has persuaded the public we can't afford programs people would otherwise support? Has the incessant use of the word "budget deficit" gotten people to focus their attention on budget cuts and not explore both fair and creative ways to raise more revenue?

If we as progressives begin using the words "Revenue Crisis" instead of "budget crisis" and "Revenue Shortfall" instead of "budget deficit" could we shift the public debate and get people to focus on finding new revenue sources instead of program cuts?

(snip)

We hear about how social security will eventually go broke, but how often do we hear news stories about how simply removing the payroll tax cap would keep social security solvent for decades to come? The media too often presents the public with the false choice between reduced benefits and much higher payroll taxes for the working poor and middle class. I favor full benefits at age 65; no reduction in benefits.

(end snip)

A very interesting idea to ponder over my cuppa this morning.

[xoom]

1. good luck getting the idea of a revenue crisis to spread...

[deminks]

2. Thank you, and thank you for kicking this thread.

[xchrom]

3. Recommend

[Bosso 63]

4. Yup.

kick.

[midnight]

5. "Revenue Crisis" brought about by behaviors that have been

excused instead of punished.... G.E. Pacur are just two corporations in Wisconsin that give little or no revenue back to the state.... Apparently only the working people are in charge of providing revenue.... Big people like Ron Johnson of Pacur use tax avoidance schemes that the working people can't. I would love to hear the explanation for this....

http://uppitywis.org/blogarticle/johnsons-ten-million-dollar-pay-check-part-elaborate-tax-avoidan


Here's the kicker: From the State of Wisconsin's perspective, before Johnson owned Pacur, they were getting 3-400K a year in tax revenue from Pacur and 50-70K from Johnson and his wife, but after Johnson took control of Pacur the State got ZERO from Pacur and still got about 50-70K each year from Johnson and his wife. In other words, the net effect of Johnson owning Pacur has been that Pacur has paid no taxes.

However, now Johnson will have to pay the Wisconsin top rate of 7.75% on the 10 million, and have to cut a check to the Wisconsin Department of Revenue for $775,000. Which is still a fraction of what Pacur would have paid if Johnson wasn't using his tax avoidance schemes, but... beggers can't be choosers!

[bemildred]

6. You left off "fake", as in "fake revenue crisis".

The legislatures can easily raise the necessary money to put the government on a sound basis, by raising taxes, but they choose not to.

[PuffedMica]

7. How about a Bush crisis? Tax breaks for the rich = revenue shortfall

Some folks blame President Obama for our current condition, but anybody with two brain cells to rub together can see where the problem came from.

Bush and his predecessor Regan did so much damage, it might take strong Democratic leadership a quarter of a century to restore this country.

[Melinda]

8. Happy to K&R - Empty coffers=0 $ for public services= death of govt.

Exactly what the Grandisonant Ochlocratic Palterers (GOP) desire for the least of us and our country.

Bastards. :thumbsdown:

[Zax2me]

9. Ha! The people aren't paying enough - right......

Confiscate the remainder of the private sector - issue brown shirts to everyone -
A revenue crisis - - - what a freedom killing term of enfuckment.

[FogerRox]

10. knR, take it a step further, a Jobs crisis

[scarletwoman]

11. There's another piece to this revenue crisis, it's the disappearance of good-paying jobs

for the working class. Wages for a significant number of Americans have been stagnant or sinking for years. That means smaller income tax receipts.

And while unemployment remains high, that's even more loss of income tax receipts.

It seems to me that this may be an additional factor in missing revenue, particularly at the state level.

Not anywhere near the billions that non-taxpaying corporations are shorting the government, of course. Still, things are sinking all around us, including our own ability to contribute revenue.

sw

[Zebedeo]

12. Uh, to be perfectly honest, spending is out of control

taxfacts

This chart shows that revenues are down slightly in 2009 and 2010 from their all-time highs in 2007 and 2008. But spending went through the roof in 2009 and 2010.

Calling that solely a revenue crisis is not entirely honest, intellectually. The federal government upped its spending dramatically in 2009 and is keeping spending at a level much higher than revenues have historically been.

Instead of spinning this as purely a revenue crisis, I think Dem politicians should just be upfront about their priorities and values.

Personally, I think that the overspending has gotten way out of control and should be reined in. But if you don't agree with that, just come out and say you think spending should be increased or held steady. But don't say that the deficit is just a result of revenues dropping. If revenues stayed the same as they have historically been, the crisis would be of virtually the same magnitude.

[steelmania75]

13. Revenue is only at 14% of GDP, where it should be at 20%

If I was offered a full retirement with benefits at age 62, Medicare for all, an infrastructure system that's up to date and efficient, and subsidies for colleges instead of Big Oil, ALL for a slight increase in my taxes, I'd go for it.

[kentuck]

14. "Senator McConnell and the Republicans are dead wrong..."

..."we don't have a budget crisis, we have a revenue crisis".

How difficult is that to say?? At least, it would change the debate.