policymattersohio

1. Policy Matters Ohio Instructions for the Super Committee: a balanced approach to debt reduction That does not increase poverty or inequality Wendy Patton (614)221-4505 wpatton@policymattersohio.org www.policymattersohio.org

2. Federal revenues and expenditures over time as a percent of the economy (gross domestic product), 1940 - present Source: Policy Matters Ohio, based on Office of the Budget Historical Tables, Table 1.3— Summary of Receipts, Outlays, and Surpluses or Deficits (-) in Current Dollars, Constant (FY 2005) Dollars, and as Percentages of GDP: 1940–2016

3. cbpp.org

4. cbpp.org

5. Options to raise revenues over time 1.    Enact a financial speculation tax                                   Up to $1.3trillion[1] 2.    Repeal the (upper income) Bush tax cuts                      $629 billion[2] 3.    Tax capital gains and dividends like income                  Up to $950 billion[3] 4.    Enact a wealth surtax                                                     Up to $748 billion[4] 5.    Return the estate tax to 2001 levels                               $280 billion[5] 6.    Limit Home Mortgage Interest Deduction                 to primary residence   $12 billion[6] [1]Citizens’ Commission on Jobs, Deficits, and America’s Economic Future, Institute for America’s Future, pg. 26 [2]Investing in America’s Economy, Our Fiscal Future, pg. 35 [3]The Responsible Path Towards Investing in America, Congressional Black Caucus, pg. 2 [4]The First Step, Center for American Progress, pg. 16 [5]The People’s Budget,  Congressional Progressive Caucus, pg. 9 [6]Investing in America’s Economy, Our Fiscal Future, pg. 33 Source: OMB Watch

6. Options to raise revenues (continued) 7.    Enact a financial crisis responsibility fee (.15% of financial institution’s liabilities for entities over $50 billion) $90 billion[7] 8.    Eliminate the deferral of income from US controlled foreign subsidiary corporations (tax US corporate foreign income as it is earned) $114 billion[8] 9.    Eliminate itemized deductions for those making over $200,000 a year  $410 billion[9] 10.    Enact a carbon tax/ cap & trade tax                            Up to $846 billion[10] 11. Raise the gas tax Up to $600 billion[11] [7]Investing in America’s Economy, Our Fiscal Future, pg. 40 [8]Reducing the Deficit: Spending and Revenue Options, March 2011, Congressional Budget Office, pg. 186 [9]Living Within Our Means and Investing in the Future: The President’s Plan for Economic Growth and Deficit Reduction, Office of Management and Budget, pg. 47 [10]Investing in America’s Economy, Our Fiscal Future, pg. 38 [11]Investing in America’s Economy, Our Fiscal Future, pg. 42 Source: OMB Watch

7. Percentage change in after-tax income by income grouping, 1979-2007

8. Trends in wages by income grouping

9. Share of income growth captured by top 1% compared to bottom 90%

11. Trends in sources of federal receipts as a percent of the economy (gross domestic product)

12. cbpp.org

13. Critical principles for the Super Committee • Take a balanced approach to debt reduction: Balance the $900 billion already cut with revenues. 2) Do no harm: Do not make poverty worse or inequality deeper