Policy Matters Ohio Instructions for the Super Committee: a balanced approach to debt reduction That does not increase poverty or inequality Wendy Patton (614)

Federal revenues and expenditures over time as a percent of the economy (gross domestic product), 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

cbpp.org 10/20/20153

cbpp.org 10/20/20154

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

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] [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] [8] 9. Eliminate itemized deductions for those making over $200,000 a year $410 billion [9] [9] 10. Enact a carbon tax/ cap & trade tax Up to $846 billion [10] [ 11. Raise the gas tax Up to $600 billion [11] [11] [7] [7] Investing in America’s Economy, Our Fiscal Future, pg. 40 [8] [8] Reducing the Deficit: Spending and Revenue Options, March 2011, Congressional Budget Office, pg. 186 [9] [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] [11] Investing in America’s Economy, Our Fiscal Future, pg. 42 Source: OMB Watch

Percentage change in after-tax income by income grouping,

Trends in wages by income grouping

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

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

10/20/ cbpp.org

Critical principles for the Super Committee 1)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