In no terms should a deal be struck that continues to speed more than revenue can support. 17 trillion is enough debt. According to us census our national debt is higher than the value of all the land of the combined 50 states.

Most tax discussions only center around W-2 forms of income (where you get paid for actually working 8 to 10 hours a day). Any the highest tax bracket on W-2 income stops at $380K which throws a 2 income family often in the same tax bracket is a chief executive making $10s of millions. Plus W-2 income pays Social Security tax, Medicare Tax, etc. (though there is the $100K limit on Social Security wages – again a big break for upper, upper income).

What is missing in these discussions is the immensely low tax rate on unearned income: capital gains, dividends, real estate 1038 exchanges, oil/gas partnerships and other K-1 and 1099 forms of income. Much of K-1 dividends paid out are not taxed at all because they are considered under our archaic tax code a “return of capital”. 15% tax rate on long term gains is only marginally lower than the 28% top rate on short term capital gains (investment held under one year – often just for a couple of hours). These 1099, 1098, K-1 incomes don’t pay into social security or medicare and can offset these gain in myriad of ways to reduce even the 15% tax rate. This is where the super rich are reaping such a huge % of the nation’s wealth and income. And the low, low rate on short term gains has been a huge benefit to speculators that has led to the boom/bust markets we have today.

Going back to the pre-Bush tax code is a step in the right direction, and having an automatic cut of $50billion in the Defense budget is certainly a HUGE step in curtailing that big waste of money.

Obama and the Democrats should nut feel bullied and rushed into a tax compromise with the Norquist puppets in the House and Senate. It will take months and months of hard work to come up with a new tax structure that actually makes sense. From higher rates on 7-digit W-2 income, elimination of salary caps on social security, cap on low 15% dividend income (maybe 15% on just the first $50K then to marginal income tax rate), and finally 50% to 80% tax rates on short term capital gains. We need to eliminate all preferential rates to real estate, oil & gas structures, off-shore income, etc.

And let’s take $50billion in the Defense Budget and pay off some of our debt.

Most tax discussions only center around W-2 forms of income (where you get paid for actually working 8 to 10 hours a day). Any the highest tax bracket on W-2 income stops at $380K which throws a 2 income family often in the same tax bracket is a chief executive making $10s of millions. Plus W-2 income pays Social Security tax, Medicare Tax, etc. (though there is the $100K limit on Social Security wages – again a big break for upper, upper income).

What is missing in these discussions is the immensely low tax rate on unearned income: capital gains, dividends, real estate 1038 exchanges, oil/gas partnerships and other K-1 and 1099 forms of income. Much of K-1 dividends paid out are not taxed at all because they are considered under our archaic tax code a “return of capital”. 15% tax rate on long term gains is only marginally lower than the 28% top rate on short term capital gains (investment held under one year – often just for a couple of hours). These 1099, 1098, K-1 incomes don’t pay into social security or medicare and can offset these gain in myriad of ways to reduce even the 15% tax rate. This is where the super rich are reaping such a huge % of the nation’s wealth and income. And the low, low rate on short term gains has been a huge benefit to speculators that has led to the boom/bust markets we have today.

Going back to the pre-Bush tax code is a step in the right direction, and having an automatic cut of $50billion in the Defense budget is certainly a HUGE step in curtailing that big waste of money.

Obama and the Democrats should nut feel bullied and rushed into a tax compromise with the Norquist puppets in the House and Senate. It will take months and months of hard work to come up with a new tax structure that actually makes sense. From higher rates on 7-digit W-2 income, elimination of salary caps on social security, cap on low 15% dividend income (maybe 15% on just the first $50K then to marginal income tax rate), and finally 50% to 80% tax rates on short term capital gains. We need to eliminate all preferential rates to real estate, oil & gas structures, off-shore income, etc.

And let’s take $50billion in the Defense Budget and pay off some of our debt.

@Gordon2352: We’re more likely to persuade the wealthy (or, those wealthy people who are not yet persuaded, though many of them have been); if we start speaking about the 100%, rather than attempting to force their hand with divisive politics with talk of the 99% or whatever.

As long as unemployment is high it is not the time to worry about bond holders. But should try to fix structural problems. Such as failed trade policies (at lest they have not worked for good of the greatest number of Americans). Paying more for education and health care than most nations but getting less results.

“Congress and the president should increase taxes on the wealthy, which have caused all of this because of their unmitigated greed, and force them to pay their fair share – beginning next year.”

Without more revenue coming in, the US economy WILL certainly crash.

This is not a debt issue. It is a shortfall in revenue issue, which is caused solely by the wealthy refusing to pay their fair share in taxes.

It’s not rocket science, if people like you would begin to tell the truth.

It’s also not economics.

It’s old-fashioned greed by the wealthy class who care about nothing but themselves and maintaining ther egregious lifestyles at the expene of everyone else.

THAT is what must be reversed, no matter what it takes, for the sake of this nation and the American people.

And, no, I do not include the wealthy class as being part of the American people any longer.

They must be made to pay for what they have done to this country.