“Stimulus 2011” comes at a time when GDP growth has been muddling along around 1%, whereas it presumes that the tax revenue increases will be caused by a 2012 GDP growth of 5%, 2013’s to be 7%, and 2014’s to be 8.5%. The “math” doesn’t add up that way either.
Here is my suggestion - a totally regressive, all-inclusive tax on TOTAL household income, starting with first dollar taken into the household, NO deductions for ANYTHING. The very modest tax would be set at 1% of the gross receipts of every household, from whatever source. If there is a Section Eight subsidy of $6,000 a year, $60 would be taken for this purpose. If an inheritance of $150,000 fell to the members of the household, $1,500 would be contributed. If $9,000 were distributed to this household as food stamps, then $90 would be assessed. For a family of four, that had earnings of $36,000 annually, they would be liable for $360, even if no income tax was due otherwise. Likewise, unemployment benefits would also subject to, and held accountable for, this same levy, as would be strike benefits paid by unions.
This way, EVERYBODY has skin in the game, and freeloading is no longer entirely “free”. Once everybody is getting bitten by the taxman, then a very loud clamor for reform will come.
This surtax would be repealed with the first budget that can be balanced, no deficit financing, based on the standing rules of taxation.