Paul Krugman, “What a Decent Budget Would Look Like”
Paul Krugman’s recent post, “What a Decent Budget Would Look Like – Imagining a Congress that was neither cruel nor irresponsible” shows a shockingly narrow view of decency.
“First, get Americans — mainly wealthy Americans — to pay the taxes they owe.” OK, but it would be truly decent to suggest that we go back to the boom times of the 1950s and ’60s and the 90% top tax rate for high-income individuals. This under a Republican President Eisenhower.
“Second, crack down on Medicare Advantage overpayments.” OK, but why not simply eliminate Medicare Advantage plans entirely? Originally, they were supposed to move us from the fee-for-service model of traditional Medicare and Medicaid to a pay-for-results model, based on the health of the patients. But it has turned into a multi-billion-dollar rip-off, enriching the CEOs and shareholders of these so-called insurance plans.
“Third, go after corporate tax avoidance. Much of this involves multinational firms using strategies that are shady and dishonest but legal to make profits actually earned in the United States disappear and reappear in low-tax nations like Ireland.” OK, but let’s go after the big bucks here. The top corporate income tax rate in 1960 was 52%; today it is 21%. Up until 2003, stock dividends were taxed at personal tax rates. Now they are taxed at 15%. Since 54% of all corporate equities are owned by the top 1% and 35% more by the next 9% of the population,1 this is a great tax break for them since the top personal tax rate today is 37%. Before 1982 stock buybacks were illegal. They were considered to be price manipulation. Eliminate that Reagan-era rule change that has driven $trillions of dollars of wealth transfer to the rich.
OK, I could go on about what a decent budget might include….. but really, Krugman, do you think that your extremely modest proposals are your best pass at decency?
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