Individual income taxes
to $19,864,200 Million
"1. Allows Bush tax rate cuts to expire at the end of 2012, except for a handful of provisions helping middle-class families including marriage-penalty relief, expanded child tax credit, education incentives, and other incentives for children and families. Generates an estimated $698.5 billion in revenue over 2012-2021. [already reflected in the baseline - widescope]
2. Immediately rescind the upper-income tax cuts, maintaining only tax cuts for individuals earning less than $200,000 and joint-filers earning less than $250,000. Specifically, the budget would let 33% and 35% tax brackets revert to 36% and 39.6% respectively, reinstate the limitation on itemized deductions and personal exemption phase-out, and end all capital gains and dividends tax cuts. Projected to generate $94.9 billion over 2012-2014.
3. Adopt the Fairness in Taxation Act, which would create several new tax brackets for high-income earners: $1-10 million would be taxed at 45%; $10-20 million, 46%; $20-100 million, 47%; $100 million-$1 billion and over, 49%. The bill would also tax capital gains and dividend income as ordinary income for taxpayers with income over $1 million. Estimated to generate $872.5 billion over the 2012-2021 period.
4. Tax capital gains and qualified dividends as ordinary income. Estimated to generate $324.9 billion (over the gains already estimated from enacting the fairness in taxation act above).
5. Limit the rate at which itemized deductions can reduce tax liability to a maximum of 28%. This policy would generate $293.3 billion over 2012-2021 period.
6. Replace the tax exclusion for interest with a direct subsidy to borrowers, which would be a more cost effective way of reducing their borrowing costs. Generates an estimated $142.7 billion over 2012-2021 period."
Corporation income taxes
to $4,653,800 Million
1. Impose a leverage tax on large banks with more than $50 billion in assets. Generates an estimated $70.9 billion over the 2012-2021 period.
2. Eliminate a handful of tax preferences carved out for fossil fuel producers, which would help level the playing field between renewable energy sources and fossil fuels. Specifically, would repeal exploration and development expensing, preferential tax treatment of royalties, and domestic manufacturing deductions. Repeal would save $41 billion over 2012-2021 period.
3. Eliminate the deferral of income from U.S.-controlled foreign subsidiary corporations and instead tax all foreign earnings as earned. Generates an estimated $114.2 billion over 2012-2021 period.
to $1,826,600 Million
1. Raise the motor fuel excise tax by 25 cents to recapitalize the Highway Trust Fund and finance the surface transportation reauthorization proposal. The current tax on motor fuels is insufficient to fund today's level of highway spending, which is already inadequate. This policy also helps correct for the negative social costs of consuming petroleum. Would generate an estimated $290.9 billion over 2012-2021 period.
2. Impose a small tax on transactions of exotic financial products (swaps, futures and forwards transactions, option premiums, foreign exchange spot transactions). Generates an estimated $432 billion over 2012-2021 period.
3. Reinstate Environmental Protection Agency's Superfund excise taxes that expired in 1995 for financing cleanup of hazardous waste. Specifically, imposes an excise tax of $0.22 to $4.87 per ton on various chemicals, an excise tax of 9.7 cents per barrel of crude or refined petroleum, and a corporate income tax of 0.12% on modified alternative minimum corporate income above $2 million. Generates an estimated $19.4 billion over the 2012-2021 period.
1. Beginning in 2014, establish national health insurance exchanges through which individuals and families can purchase private coverage, increasing competition in largely fragmented, regional insurance markets. Under this option, the Secretary of the Department of Health and Human Services would administer a public health insurance plan to be offered alongside private plans which would exploit economies of scale to negotiate payment rates for prescription drugs, pay physicians 5% more than Medicare reimbursement rates, and pay hospitals and provides comparable rates as under Medicare. Expenses would fall $26.7 billion (reduction in targeted subsidies for the purchase of insurance in the exchanges).
2. Negotiate drug prices with pharmaceutical companies (exploiting economies of scale). Saves an estimated $157.9 billion over 2012-2021 period.
to $6,149,920 Million
1. Adopt a series of health care savings included in the president's 2012 budget request meant to compliment and strengthen health reform. Major proposals include reducing the Medicaid provider tax threshold in 2015, tracking high prescribers and utilizers of prescription drugs in Medicaid, strengthening Medicaid third-party liability, and recovering erroneous Medicare Advantage payments. Saves an estimated $62.2 billion over 2021-2021 period. (Should be split between Medicare and Health, but lumped together here)
to $1,253,640 Million
1. Adopt the six-year surface transportation reauthorization proposal in president's 2012 budget. Plan would rebuild and modernize the national surface transportation infrastructure and expand investments in highways, highway safety, passenger rail, and high-speed rail, among other projects. Would cost $212.9 billion over 2012-21 period.
to $5,616,630 Million
1. End wars in Iraq and Afghanistan. End funding in 2013, leaving one year to safely and deliberately withdraw American soldiers. Will save an estimated $1.6 trillion over the 2012-2021 period.
2. Reduce Base Department of Defense Spending. Specific proposals for conventional forces include: reducing active duty Army personnel strength to 427,000 by 2014 (decrease of 120,000), reduce the Marine Corps personnel strength by 30% to 145,000, reduce the Navy by 20% to a fleet of 230 ships, reduce the Air Force by 15%, reducing the number of squadrons by 18. Specific proposals for strategic capabilities include reducing the U.S. nuclear arsenal, canceling the Trident II missile, limiting modernization of nuclear weapons infrastructure and research, and selectively curtailing missile defense and space programs. Saves an estimated $800 billion over 2012-2021.