Plan Z, TAX the TAX Man!
After a volatile election year, heightened bi-partisan bickering, a drift-less mandate and a still-divided government, perhaps it was senseless to think a lame duck could waddle to our fiscal rescue. On the other hand, maybe we were waiting for the wrong shoe to drop.
Since "going big" or "going home" is still the goal of both parties, will Plan B, Plan C and numerous other plans just be shelved? It appears no one can agree on the nation's long-term dilemma in the short-term before we all plummet off the impending metaphorical (or should we call it mythical) Fiscal Cliff, that has consumed the airwaves ever since Obama sent Romney a'packing.
The Brookings Report, states that "some of the problems with the existing positions of key leaders are becoming apparent." President Obama wants to restore the tax rates of the Clinton years on the rich where half of his deficit reduction dollars would come from new revenues. The Republicans consider this a non-starter and continue to regurgitate the Romnesia plan - that is, raising revenues through the closing of tax loopholes. Unfortunately to date they are unwilling to be specific on just which loopholes would give us the biggest hit.
Obama says that it’s time to tax the rich. Daniel Greenfield from the Canada Free Press agrees but thinks his proposal should be go beyond millionaires. I agree with both, as I suggest a Plan Z -or the taxing of those making a trillion dollars or more.
This should be an extremely progressive tax. I would suggest 90 percent or higher. But wait, are there any U.S. trillionaires alive today? They're not exactly a dime a dozen, and that's a lot of zeros to earn. While Bill Gates and Warren Buffet are up there in cash assets, their collective estimated new worth is less than $200 billion or so. According to the Slate report, "The First Trillionaire," they hypothesize with the dollar eroding exponentially, we could actually see trillionaires in less than 50 years.
Wow, 50 years is a long time to wait for some revenues to trickle in and then down. But waiting around for our politicians to do the right thing seems fruitless as well. Greenfield's solution is not to tax businesses and individuals particularly in tough economic times. But to tax the "trillionaires" that have spent our tax dollars.
His suggestion is to tax the trillions flowing into the Federal coffers that in turn are being spent senselessly tallying up to our current 15 trillion dollar deficit. According to Greenfield, "now it's time to make them pay their fair share."
"Federal spending dug the hole and adding more shovels by raising taxes will just make a bigger hole. The only way we can fill the hole is if we take away the shovels and start putting the dirt back. That means taxing the spenders, not the earners," adds Greenfield. If the Federal coffers are a result of money coming in from the taxpayers, and then handed out to cronies, special interests and supporters, in essence, it amounts to a spoils system that needs to be checked. Instead of penalizing the middle class, the penalty should to be applied to those that need to learn how to spend our money wisely.
In making the "trillionaire" body politic pay 90% or more on their spending, we would be taxing the taxmen, lending to a "certain quality of poetic justice" and "pragmatism."
It seems fair in the grand scheme of things that those who promote spending money should pay their fair share of the costs attached to their policies. Perhaps if my Plan Z could become law, the lawmakers of this land would become a lot more prudent, a lot saavier in determining where they need to cut spending - since every time they pay out, they know they're going to have to pony up another 90 percent in taxes to pay for it. Now, that would put the fiscal shoe on the other foot, with a lot less opportunity to slip down that next Fiscal Cliff.