Alert
Close

New! Boost your memory with AARP Brain Fitness. Try these fun exercises proven more effective than crosswords

AARP Membership: Just $16 a Year

Highlights

Open

Dunkin' Donuts

Members receive a Donut with purchase of a L or XL beverage

Social Security Calculator

What will your Social Security benefits pay out?

AARP® Vision Discounts

provided by EyeMed

Technical Icon

Spanish Preferred?

Visit aarp.org/espanol

Job Tips for Workers 50+

Hear insights from hiring employers

Contests and
Sweeps

You Could Win $50,000!

Plus you’ll get free tips and tools to help you find your perfect path to retirement
See official rules.

Today's
news

Most Popular
Articles

Viewed

Recommended

Commented

How You'd Cut the Federal Deficit

You spoke up loud and clear. But is Washington listening?

  • Text
  • Print
  • Comments
  • Recommend

for free or at reduced prices to children whose families are at or near federal poverty levels? Who would make sure that our foods and drugs are safe, and that we can effectively fight infectious diseases and the like?

5. Raise taxes

Lots of commenters argued that spending cuts alone aren't enough. And many of them went well beyond the revenue-raising options offered in the budget calculator, one of which was eliminating the tax cuts passed during the Bush administration.

Chief among the suggestions:

  • Close loopholes that allow many large U.S. companies to avoid paying any federal taxes. According to a recent article in the New York Times, for example, General Electric reported $14.2 billion in global profits in 2010 yet somehow came out not only owing nothing but claiming a tax credit of $3.2 billion. Eliminating business tax dodges might shave the deficit by as much as $450 billion, according to an analysis by Citizens for Tax Justice.
  • Abolish the capital gains tax — which, according to the Tax Foundation, can drop as low as 10 percent — and instead assessing income from the sale of real estate or stocks at the same rate as regular income. It's difficult to calculate exactly how much revenue this would raise, because it would be dependent upon the vagaries of the stock market. But based on this historical analysis, a reasonable assumption is that doubling the capital gains rate would pare the deficit by at least $50 billion.

Several commenters also advocated such things as a one-shot surcharge of 10 to 20 percent on the fortunes of extremely rich people; eliminating the cap on taxable social security income; taxing the

Topic Alerts

You can get weekly email alerts on the topics below. Just click “Follow.”

Manage Alerts

Processing

Please wait...

progress bar, please wait

Tell Us WhatYou Think

Please leave your comment below.

You must be signed in to comment.

Sign In | Register

More comments »

washington watch

AARP Advocacy

Discounts & Benefits

From companies that meet the high standards of service and quality set by AARP.

financial products

Member access to financial and insurance products and services at AARPfinancial.com.

Grandson (8-9) whispering to grandfather, close-up

Members save on hearing care with the AARP® Hearing Care Program provided by HearUSA.

AARP Discounts on Consumer Cellular Phones and Plans

Members save 5% on monthly service and usage charges with Consumer Cellular.

Member Benefits

Members receive exclusive member benefits & affect social change. Join Today

Featured
Groups

Politics — Current Events

Speak out on the issues and controversies of the day. Discuss

Issues & Elections

Civil, bipartisan discussions of today's issues and topics of national interest. Discuss