Fortunately, there is a way to avoid the fiscal cliff — and do so in a progressive way — that doesn’t require either magic beans or fairy dust. The not-so-secret ingredient ina new tax reform and deficit reduction plan released today by the Center for American Progress is making the wealthiest Americans pay their fair share.
“The team that brought you the last good economy,” Roger Altman, William Daley, John Podesta, Robert Rubin, Leslie Samuels, Lawrence Summers, Neera Tanden, Antonio Weiss, Michael Ettlinger, Seth Hanlon, and Michael Linden, a collection of leading economic experts from the Clinton administration and other CAP experts, have outlined a balanced approach that will deal with our fiscal challenges, make our tax code more progressive, and grow the economy in a way that will reduce income inequality and rebuild the middle class.
ThinkProgress’ Travis Waldron breaks down the details in four charts:
On revenue, the CAP plan would end the high-income Bush tax cuts, pushing top marginal tax rates back to their Clinton-era level. It also reforms the tax code by closing loopholes, converting deductions to credits, and repealing the Alternative Minimum Tax. As a result, it would raise $1.8 trillion in revenues and bring taxes as a share of the economy into line with the Simpson-Bowles deficit reduction plan: