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My Fiscal Cliff Bargain =P

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RichardAWilson
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Post: #1
My Fiscal Cliff Bargain =P

Create your own Fiscal Cliff Deal here:

http://www.washingtonpost.com/blogs/wonk...adventure/

NoplanWe'd be so much better off if I were in the White House.Noplan

The choices and selections which I made would, according to this model, leave us with a much healthier economic growth in 2013, 2014 and 2015.

Annualized GDP Growth
2013: +5.15%
2014: +3.90%
2015: +5.10%

The new growth would depend on new stimulus and on a continuation of our current tax rates and federal spending levels and would mean that we'd incur larger short-term deficits during that period.

The Federal Balance
2013: -$1.57 Trillion
2014: -$1.03 Trillion
2015: -$660 Billion

The longer-term fiscal image would be rosier and the longer-term image matters much more to those who determine a nation's creditworthiness.

A Longer Term Image
2016: -$140 Billion
2017: -$50 Billion
2018: +$4 Billion
2019: -$30 Billion
2020: -$30 Billion
2021: -$10 Billion

New Economic Stimulus:

A New Stimulus Program would be introduced to strengthen economic growth and provide much needed financing for new infrastructure and renovation.

The Making Work Pay Incentive would be preserved and doubled from $400 to $800 per individual.

Fiscal Sequesters and the Bush Administration's Tax Rates:

The Defense Sequester will be moved from 2013 to 2016 to ensure we are able to finish our mission in Iraq and Afghanistan before reducing our defense spending.

The Non-Defense Spending Sequester will be rescinded never to be revisited so that we are able to avoid a large across-the-board spending reduction to essential programs and services.

The lower marginal tax rates which became law in 2001 and 2003 will be extended in order to maintain our economic growth and to reassure our foreign investors that we will not punish them for investing in us.

The lower payroll tax rate will be extended to in order to maintain consumer spending and encourage our businesses to continue creating new jobs by making it more affordable for them to do so.

A New Revenue Yielding Tax Overhaul:

A person's maximum total tax deduction will not be able to exceed 15% of gross income.

The Home Mortgage Interest Deduction will be allowed to expire because it benefits wealthier individuals, real estate speculators and landlords more than the middle class.

The State and Local Tax Deduction will be allowed to expire because it benefits higher income households more than the middle class.

A person will be required to contribute 2% or more of gross gross income to claim the Charitable Giving Deduction.

A Carbon Tax will be implemented in order to reduce our demand for foreign fossil fuels and to allow us to avoid other tax increases which would harm growth more than this.

Long-Term Reform and Reduction:

The Defence Sequester will still be implemented in 2016 unless Congress passes an alternative defence spending reduction plan which would produce similar savings to the sequester.

Social Insurance Benefits will be indexed to the CPI instead of the Wages and Income.

Social Insurance COLA Provisions will use an alternative measure of calculating Consumer Price Inflation.

People who retire will remain eligible for partial provision at 62 and full provision at 65.

All Americans will be able to enrol in a National Health Insurance Plan (I.e. The Public Option).

Medicare Premiums will be increased under a new expense-sharing plan and model.

The Medicare Enrolment Age will be increased from 65 to 67.

TRICARE will be overhauled to make the program more sustainable.

This post was last modified: 27.12.2012 05:54 by RichardAWilson.

27.12.2012 05:36
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Helsworth
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Post: #2
RE: My Fiscal Cliff Bargain =P

I'd say it with fewer words. Get rid of Wall-Street and then, the world's recycled surpluses into the USA will actually reach the real/physical/productive economy - which is starved of the needed capital to function. And end the wars. End the oligarchy of OPEC and the Military Industrial Complex on american politics.

Ok, here's my bargain:

Effect on GDP growth
GDP Change in
2013: +3.41%
2014: +3.77%
2015: +5.10%

Cost of select policies vs. projected deficits
Surplus in 2021: $215 billion

Fiscal Cliff:
Extend the Bush Tax Cuts for low and middle income

Deficit Reducers:
Public Option
Index to prices, not wages
Use different inflation index (CPI)
Limit tax expenditures to 15%
Eliminate state/local deduction
Eliminate mortgage interest deduction
Increase gas tax
Value added tax

Stimulus measures:
Doubled make work pay credit
American Jobs Act
Income tax rebate


https://www.patreon.com/SerbanVCEnache

This post was last modified: 27.12.2012 06:36 by Helsworth.

27.12.2012 06:12
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Snorunt30
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Post: #3
RE: My Fiscal Cliff Bargain =P

You two realize most of the mentioned reforms wouldn't happen simply because they make sense, right? Pfeif (Though I personally disagree with waiting to cut the military spending, the longer we push it off the more conflicts we would get in to ensure it keeps getting kicked further down the road until someone forgets why it was there in the first place Hehe)


Ense petit placidam sub libertate quietem.
(By the sword we seek peace, but peace only under Liberty.)
If the opposite of pro is con, what is the opposite of progress?
Congress.
27.12.2012 06:48
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