The Mark Levine Tax Compromise
I’m ready to accept a tax break for all taxpayers earning under $1 million” at least temporarily if it’s revenue neutral and paid as we go. Since this change raises the national debt by a little less than $300 billion or so (though still way less than the $700 billion that would be increased if the millionaires’ tax cut had happened), we need to raise the other $300 billion somehow.
1) extend the Obama and Bush tax cuts for people earning under $250,000 permanently.
2) extend the Bush tax cuts for people making $250,000 to $1 million for three years temporarily. Cutting off the last seven years saves about $200 million.
3). Instead of raising the millionaire tax rate 3% to the old Clinton rate, raise it to 4% or 1% above the Clinton rate. This will raise more than $100 billion. And we can use the additional $40 billion or so to reduce the deficit.
I announce the plan on the Willis Report: