SHOULD AMERICAN TAXES BE RAISED?

Now we have a framework for a debt deal (although it must still pass Congress which is not a dead cert.)  What is the most depressing element of this deal?

It is the lack of any tax revenue.  The fascists in the Tea Party insisted that taxes were completely off the table.  The result is that the U.S. will never put its fiscal house in order until taxes are introduced into the mix. Despite  the fascists in the Tea Party who claim taxes must never be raised, the fact is there is plenty of room to raise U.S. taxes.  Here are the facts.

Contrary to the Tea Party and the belief of many Americans, the U.S. is one of the least taxed countries in the developed world.  Americans pay much ower taxes than any other G7 country.  Among wealthy OECD countries, only Chile and Mexico tax their individuals and corporations less.The total tax burden  on Americans as a percentage of GDP, stood at 24 percent in 2009- lower tha  1965 and still falling.   That 24 percent taxes on Americans compares to 31 percent on Canadians, 34 per cent in Britain, 42 per cent in France, 37 percent in Germany, 43 per cent in Italy.  Japan, South Korea and Australia all pay considerably more in taxes than Americans do.What about business taxes?  Same thing.  While business taxes average 22  percent of GDP in the OECD  , the ratio is just 13 per cent in the U.S.

Professor Chuck Marr agrees with this analysis.  To put the US fiscal house in order, he would introduce a Value Added Tax (US does not have one) raise cigararette taxes, tax green house gases  and ASAP scrap the $700 billion Bush tax cuts on the rich which are heavily skewered to the rich.

Personal and corporate taxes should also be raised.

This would settle the debt ceiling issue for good.

Should American taxes be raised?

What do you think?

11 Comments »

  1. 1

    How come whenever the government spends more than it can steal, no one thinks to make the government STOP SPENDING???

  2. 2
    Neil McKenty Says:

    Well, Lady Janus, that is exactly what is happening here. There will be all kinds of cuts for the poor and the middle class, not a dime’s worth of new taxes on the wealthy. The system is sick.

  3. 3
    Barbara Says:

    Actually, I don’t think that has been detailed yet, Neil. The bipartisan committee is not taking the tax issue off the table.

    Militias and tax rebellions — you can’t get any more USAmerican than that!

    Don’t count Obama out yet. He works on a longer timetable.

  4. 4
    Neil McKenty Says:

    It’s quite true, Barbara, the commission will have tax revenues on the table. But how does a 12-person commission make a decision?

  5. 5
    Neil McKenty Says:

    I have just discovered there are two ways to get trillions of dollars of tax revenues into the equation. The Committee closes tax loop holes and Obama lets the tax cuts for the rich expire.

    Whoopee!

  6. 6
    Neil McKenty Says:

    Earlier today I dubbed the Tea Party as fascists. Then I discovered that when he was on the Hill today V.P. Joe Biden called them terrorists. I yield to Joe.

  7. 7
    jim Says:

    Throughout all of earthly history the downfall of the Empires has always been greed, of one form or another. The U.S. is on that track. The name of the railroad is “The Head on Collision Line.” Would anyone ever believe they would one day hear that the beginning of the downfall would start with the downgrading of the U.S. credit rating by the U.S. credit rating agencies, the very same agencies, which in collusion with the banks, caused the present financial crises and the loss of millions of homes by owners because of the shenanigans of the pigs at the trough. Why haven’t these agencies been charged with abetting. Because there will be a lot of confusion about the U.S.dollar from now until after the next U.S. election, the core basis for financial dealings will begin to change over to the Euro. Thus begins the demise of the Empire. Europe has about 100 million greater population than the U.S. and it will have a more reliable financial system as it will not be subject to the political whims of politicians, who in the States are serving themselves and not the people. Sad, sad, very sad.

  8. 8

    Ironically, if you want to increase tax revenues, you have to decrease the higher tax brackets.

    So, if true, what do you think should be done?

  9. 9
    Tony Kondaks Says:

    Neil writes: “…only Chile and Mexico tax their citizens and corporations less.”

    Not according to Bloomberg. The following claims that the U.S. has the 6th highest corporate taxation in the world: http://www.bloomberg.com/news/2011-04-14/u-s-companies-pay-world-s-sixth-highest-tax-rate-study-finds.html

  10. 10
    jim Says:

    Tony:- The figures Bloomberg reported on are flawed for tax comparison purposes. The beancounters left out some companies, including oil companies. They also left out the VAT on all companies (not applicable to U.S.companies), monies used to pay for government. As an aside, the U.S.Federal Tax Receipts for 2010 show that Corporation Income contributed $191 billion whilst income from Individuals amounted to $899 billion. So take the $191 billion add it to the $899 billion and jack up the taxes on the super rich to pay for it. Imagine no corporate taxes. Get ready, the Chinese are-a-coming with their factories to open their doors on Uncle Sam’s land. Look Ma no taxes. Look again no deficit in the balance of payments. Look again employment booming etc, etc, etc.

  11. 11

    Just to let you know… your website looks extremely strange in Mozilla on a Mac


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