John and Mitch: Put Up or Shut Up

ProgressiveInTexas's picture

If I hear another Republican say “We can’t tax the job creators” or “Tax cuts for the rich create jobs” one more time, I think my head may explode.  Anyone who has passed Intro to Economics in College understands that this concept is on par with Greek mythology; unfortunately to the corporate puppets it has become their religion. 

Progressives need to challenge them to put the tax money where their mouth is.  We need reform the tax code to penalize those who benefited from the Bush tax-cuts but did nothing to create jobs for American Citizens.  The following is a general frame work to achieve this goal.

Tax Reforms for Unemployment Elimination

  • ELIMINATE direct taxes on Corporations; replace it with a Pre-Dividend Assessment.  The assessment is due when profits are realized prior to quarterly dividend/profit dispersal to shareholders.  For Corporations headquartered in the United States the base assessment is 20% and the base assessment on Foreign Corporations is 30% on the dividends/profits dispersed to US Citizens.

  • ESTABLISH an Unemployment Surcharge Adjustment indexed to the unemployment rate as follows:

    A target unemployment rate is set at 6%.  Each quarter, the target unemployment rate is subtracted from the unemployment rate for that quarter then multiplied by 5.  When the unemployment rate is high, say 9.4%, the Unemployment Surcharge Adjustment would be 17% (9.4% – 6% = 3.4%; 3.4% x 5 = 17%).  When unemployment is below 6%, the difference is negative and the adjustment becomes a cut.  If unemployment is at 5.5% the adjustment results in a 2.5% tax reduction.  (5.5% - 6% = -0.5%; -0.5% x 5 = -2.5%)

    The Unemployment Surcharge Adjustment is added to the Corporate Pre-Dividend Assessment, all Capital Gains and regular income over $500,000 for individuals; payment is due with quarterly estimate filings.

  • REDUCE the total FICA rate to 4% and eliminate the requirement for the employer’s contribution.  Individuals pay 4% on ALL income earned; regardless of source.  10% of the Pre-Dividend Assessment and Unemployment Surcharge Adjustment are allocated to Social Security, Medicare and Medicaid.

Johnny Tanman and Yertle McC its time to put up or shut up...

  

Comments

Natural Lefty
Natural Lefty's picture
Well stated, Progressive in

Well stated, Progressive in Texas. I like your ideas.

gary phillips
gary phillips's picture
Wow!  Taxation based on logic

Wow!  Taxation based on logic and necessity, rather than greed.    I like it!

Seriously, I don't know how anything will be reformed when we have legalized bribery (lobby) woven right into our legislative process.   I can't fight or compete with a company that contributes $100,000 to get their way, even when "their way" affects me in a negative manner.   If you took a poll on the street and explained this, nearly every citizen would say it's wrong, but there it is.   It just shows you where the REAL loyality lies with politicians like Tanman and Frumpy, and they are only the tip of the iceberg.

Robindell
Robindell's picture
The only thing is that I

The only thing is that I would be willing to pay slightly more FICA tax to help insure adequate revenues for the two insurance programs.   You could conceivably tie the payroll tax to the projected number of retirees in a given year based on the birth rate for when people reaching the Social Security retirement age in that year were born, but you may have to also factor in the number of disabled people who needed Social Security or SSI and the number of widows who became eligible.