If Tim Pawlenty’s tax plan becomes law, which I strongly doubt, it will be time to for us to get the Vaseline and grab our ankles. It’s going to hurt bad. In short, it amounts to a tax increase on America’s most needy citizens, a huge tax cut for millionaires, billionaires and criminal corporations, a big increase in the debt, and a poison pill for America’s economy.
Earlier today, presidential candidate and former governor Tim Pawlenty (R-MN) outlined his economic policy “vision,” which included several major proposals to cut taxes. Pawlenty called for:
– Cutting the top individual income tax rate down to 25 percent;
– Having just two income tax brackets, 10 percent and 25 percent;
– Eliminating all taxation on capital gains, dividends, and estates;
– Cutting the corporate tax rate down to 15 percent
These proposals, taken together would bestow a massive tax cut on the wealthiest people in the country. They would also reduce overall federal revenues to a such a low level that even if Pawlenty’s draconian, radical spending targets were achieved, deficits and debt would still soar out of control.
All together, Pawlenty’s tax proposal would generate an average revenue level of just 13.6 percent of GDP from 2013-2021. That translates to a tax cut of $7.8 trillion, and that’s on top of $2.5 trillion cost of extending all of the Bush tax cuts (see below for details on how this estimate was calculated).
Pawlenty also says that he will balance the budget, and cap spending at 18 percent of GDP. Unfortunately for Pawlenty, his tax plan leaves him about $8.4 trillion short… [emphasis original]
Inserted from <Think Progress>
What this does is puts an additional ten percent tax on those who are currently too poor to pay federal income taxes and cannot make ends meet now.
Lawrence O’Donnell exposes the Pawlenty plan as the misbegotten lie that it is.
Visit msnbc.com for breaking news, world news, and news about the economy
The Fairness in Taxation Act is a clearly better Alternative.
…The Fairness in Taxation Act would add new tax brackets for income starting at $1 million and ends with a $1 billion bracket. The new brackets would be:
- $1 – $10 million: 45%
- $10 – $20 million: 46%
- $20 – $100 million: 47%
- $100 million – $1 billion: 48%
- $1 billion and over: 49%
The bill would also tax capital gains and dividend income as ordinary income for those taxpayers with income over $1 million. If enacted in 2011, the Fairness in Taxation Act would raise more than $78 billion…
Inserted from <Fair Economy>
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13 Responses to “Bend Over for the Pawlenty Tax Plan”
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They have their own arithmetic. I’ll be damned if I can understand how they come up with these ideas.
It’s a two step process, Patty.\
1) Open Mouth
2} Omit truth.
I read an interesting idea the other day over at ataxingmatter in the comments. The commenter suggested floating the top tax rates, increasing them as unemployment went up. Higher unemployment, higher taxes, thus providing the “job creators” incentive to do their job.
Jerry that is an interesting idea. Has it taken hold anywhere?
Also, a 0.5% transfer fee on the Derivatives Market transactions would raise over $500,000,000,000 (500 BILLION DOLLARS!) per year.
There are many ways to solve our deficit problems without having to kill, injure, or create suffering among the majority of Americans.
Jerry, this came from a comment in which the commenter gave no citation to support his claim. If this is true, I’d love to see some supporting data. Thanks!
Here is a reference to a book about it. Unfortunately, I think you have to buy the book. I haven’t found the actual math to support this claim.
Do you really think that Timmy Pawlenty would twist his dubious facts into a lie?
Yeah – me, too! In a lengthy and detailed analysis, the Washington Post Fact Checker gave him Two Pinocchios (I would have given him three.)
http://www.washingtonpost.com/blogs/fact-checker/post/tim-pawlentys-dubious-economic-assertions/2011/06/07/AGxyZRLH_blog.html?wprss=fact-checker&wpisrc=nl_fix
Thanks Nameless. Getter give him asbestos jockey shorts too.
It is an insane plan , by an individual so out of touch with reality –it takes my breath away!!
Bingo!
There are a group of 200 Millionaires and Billionaires that say the don’t need more tax cuts. Some are giving their extra monies to their communities and non-profits. We need this bill desperately, so please sign it. I did.
So did I Lisa. Thanks!