12/29/12, "Why the Economy Needs Tax Reform," NY Times editorial
"The main problem is that the current tax code is incapable of raising
the revenue needed to pay for the goods and services of government. Over
the last four years, federal revenue as a share of the economy has
fallen to its lowest level in nearly 60 years, a result of the
recession, the weak recovery and a decade’s worth of serial tax cuts.
Even with deep spending cuts, the chronic revenue shortfall is expected
to continue, swelling the federal debt — unless taxes go up. To
stabilize the debt over the next 10 years while financing more
investment would require
at least $1.5 trillion to $2 trillion in new revenue,
above what could be raised by letting the top income tax rate revert to its pre-Bush-era level of 39.6 percent.
at least $1.5 trillion to $2 trillion in new revenue,
above what could be raised by letting the top income tax rate revert to its pre-Bush-era level of 39.6 percent.
A logical way to help raise the additional needed revenue would be to
tax capital gains at the same rates as ordinary income. Capital gains on
assets held for more than a year before selling are taxed at about the
lowest rate in the code, currently 15 percent and expected to rise to 20
percent in 2013. That is an indefensible giveaway to the richest
Americans. Research shows that the tax breaks do not add to economic growth but do contribute to inequality. Currently, the top 1 percent of taxpayers receive more than 70 percent of all capital gains, while the bottom 80 percent receive only 6 percent....
Mr. Obama would be wise to instruct the Treasury Department to start work on tax reform now, exploring carbon taxes, both to raise revenue and to protect the environment; a value-added tax, coupled with provisions to protect lower-income taxpayers from higher prices, to tax consumption and encourage saving; and a financial transactions tax, to ensure that the financial sector, whose profits have substantially outpaced those of nonfinancial corporations, pay a fair share.
Mr. Obama would be wise to instruct the Treasury Department to start work on tax reform now, exploring carbon taxes, both to raise revenue and to protect the environment; a value-added tax, coupled with provisions to protect lower-income taxpayers from higher prices, to tax consumption and encourage saving; and a financial transactions tax, to ensure that the financial sector, whose profits have substantially outpaced those of nonfinancial corporations, pay a fair share.
Not all of the proposed new taxes would gain support, but all deserve to
be part of the debate. Controlling the terms of that debate, and then
advancing from debate to action, could well be the toughest challenge of
Mr. Obama’s second term and, if met,
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6/1/2009, "Slim's Time, Who is Carlos Slim, and does he want the paper of record?" New Yorker
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10/7/11, "What’s Carlos Slim Want With the NYT?" Gawker
"After Mexican billionaire Carlos Slim raised his stake in the New York Times Co. yesterday, the stock shot up! Today, it's shot back down to normal levels."...
