There is a push in Washington to reduce the federal deficit by $4 trillion over the next 10 years, primarily by cutting government spending.
But federal spending was already cut by $1.5 trillion in the first round of deficit reduction negotiated in 2011 - with 60 percent of the cuts coming from programs important to our families, such as education, food safety, environmental protection and law enforcement.
Another $1.2 trillion in spending will be axed if across-the-board sequestration cuts kick in after the first of the year. For those seeking additional deficit reduction or investments in jobs and services to rebuild our economy, we identify five options to raise additional revenues from the wealthiest Americans and big corporations by ending special-interest tax breaks and loopholes.
There is a better way: end the Bush tax cuts for the richest 2 percent. This would generate nearly $1 trillion in savings that could be used to cancel the sequestration cuts.
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FIVE OPTIONS FOR RAISING MORE REVENUES OVER 10 YEARS |
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| 1. End Special Low Tax Rates for Income from Stocks and Other Assets |
$533 billion |
| 2. Increase Income Tax Rates Paid by Millionaires and Billionaires |
$450-$800 billion |
| 3. Restore a Robust Estate Tax (above the 2009 level) |
$135-$253 billion |
| 4. End Tax Breaks for Shifting Jobs and Corporate Profits Offshore |
$168-$583 billion |
| 5. Establish a Small Financial Transaction Tax on Wall Street Trading |
$353 Billion (Nine Years) |
