Sen. Bill Nelson (D-Fla.) wrote a piece for Politico on how to solve America’s financial problems. He asked his constituents for our thoughts. Here is my response.
Yes, the tax cuts need to expire, and the loopholes need to be closed.
I support the Fair Tax.
Alternatively, eliminate all tax credits and deductibles and raise the standard exemption to something reasonable.
In 1913, the exemption was 3,000 for a single person, which today would be minimum $51,000. The current standard exemption does not amount to a living wage.
In 1992, the average adjusted gross income of the top 400 U.S. taxpayers was $46 million. In 2008, that average was $270 million.
I used the MeasuringWorth website to “correct” the value.
That 1992 amount was worth over $70 million in 2008. So, in that 16-year span, the incomes of the 400 wealthiest people increased by a factor of four.
I can assure you that no one I know increased their incomes by a factor of four during the same time period.
Tax the super-rich at pre-Reagan levels and provide exemptions at 1913 levels, and we can get out of this hole without harming anyone. The country will have the funds needed for programs, including economic stimulus. Citizens will have money to spend, and that in itself will stimulate the economy.