- Released February 25, 2009
Paying for a Strong Economy
IPS scholars find that taxes on the wealthy donâ€™t hurt consumption, and discourage the type of speculation that fueled the high-tech and housing bubbles.
To address our nation's economic crisis and maintain our nation's fiscal health, we desperately need new sources of federal revenue. Without additional federal financial resources, we as a nation will either have to shortchange long-overdue investments in infrastructure, health, energy, and economic opportunity or leave an unsustainable debt to generations ahead.
The Institute for Policy Studies has identified a package of practical and politically viable policies that could raise the revenues we need.
The report details seven proposals to increase revenue:
• Introducing a modest financial transaction tax that will chill speculation and generate $100 billion a year.
• Implementing an estate tax reform that taxes inheritances over $2 million at progressive rates.
• Setting an emergency tax rate on extremely high incomes that would generate over $60 billion a year.
• Eliminating the tax preference on capital gains and dividend income, generating $95 billion.
• Closing overseas tax havens for individuals and corporations, generating $100 billion.
• Scrapping $18 billion in tax breaks that subsidize excessive CEO compensation.