It's a tough choice that Americans may be forced to make at some point. Maintain Medicare and it's Prescription Drug Benefit? Or reduce benefits to help save the federal budget from future deficits that will be even more gargantuan than the ones the government currently runs?
That's what David Walker, Comptroller General of the United States, has been speaking out about in recent months. In tonight's Bill of Health report, Walker elaborates on his concerns. His message is that the U.S. runs the risk of experiencing incredibly high deficits and lower standards of living, unless Americans put pressure on Congress to rein in spending. He points specifically to Medicare and the Prescription Drug Benefit as a key budget busters, especially as the waves of baby boomers retire in coming years and start drawing their social security and medicare benefts.
Others have sounded the alarm before Walker, and they all run into the same problem: Everyone wants to solve the nation's budget woes, but no one wants to pay higher taxes or make do with fewer services from Medicare. That's what makes this perhaps the most intractable of the nation's budget problems.
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For FY 2006, the IRS reports collections of 44.7% of Individual Income tax and 13.8% of Corporation income tax for the budget of $2.76 trillion. Individuals have assets of $55 trillion and corporations have over $60 trillion. Does anyone really think corporations are paying their fair share? Why do we have a budget deficit of 9%?
The wealthest 10 % own 80% of all stock and 73% of all individual assets. Republicans have changed the war on poverty to a war on the impoverished. The employment tax should be repealed and Social Security and Medicare should be paid for from the general fund that everyone contributes too. This would eliminate the so-called social security debt and require everyone to fund our welfare programs. The welfare of our people is as important as national security and should be fully funded every year.
America should adopt a tax system based on net worth for the following reasons.
1. A tax on net worth has the largest tax base. The net worth of this country is larger than the income system, about $9 trillion, and the consumption system, less than the gross domestic product, (GDP) about $14 trillion. The individual assets of $55 trillion and business assets of about $60 trillion is over 8 times larger than the consumption system.
2. Income is not a measure of being rich, net worth is. George Will has said that the wealthiest 1-percent of households have more assets than the lowest 90%, $16 trillion. Since the total individual assets are $55 trillion. The wealthiest 10% own about 73% of the net worth in the USA.
3. Taxes should be based on ones ability to pay. A tax on net worth is the fairest tax to all.
4. Taxes on net worth have the lowest percentage. America’s budget is about $3 trillion. A consumption system requires a sales tax of over 21%. A net worth tax would be less than 3%.
5. A tax on net worth is the most versatile. Besides a flat tax of 3% for individuals and businesses, there are other possibilities. Some people say we have double taxation. We could tax only people at 6% or only businesses at 6%. Since businesses can’t vote and they pass there cost on to their customers, that is the best way to go. Next is the progressive path. The first $1 million could be tax-free and increase by 0.1 % for each $1 million up to 5% after $50 million.
6. A tax on net worth is the simplest to file. Take what you own minus what you owe.
7. A tax on net worth is the easiest to enforce. Since this a property rights country, all assets are traceable.
8. Like the consumption tax, all of our present taxes could be replace, Individual income tax, corporation income tax, employment taxes, gift tax, excise tax, and estate tax.
9. Guarantees funding for all budget items like social security and Medicare by eliminating use taxes.
10. A tax on net worth promotes transparency. When a company shows an annual report with a book value of $1 billion and only $10 million in taxes, they aren’t paying their full taxes.
11. A tax on net worth promotes free trade. Money, inventory, buildings, etc. are all assets so everyone can move assets around for the best effect.
When will people learn that taxing big corporations is really taxing the little people and funds(401k's etc)who own the stock
Why do Americans (I am an American, too) neglect to recognize their right to good health. What good is free speach if we cannot be certain of our health? The question posed by Mr. Yastine is completely out of phase with the real problem -- when will rich corporations be taxed enough to insure the health of the people of the USA and a balanced budget? Or, would the 100+ billion USD used in Iraq be enough to cover the health of the nation for a few years? Trickle down, it seems, is not trickling. Forgive my leftist perspective on this particular issue.
Why is Ford stock selling so low and is making a profit and General Motors selling so high and losing money ?