Wednesday, June 13, 2012

How to fix the budget and stupid wars

Here is an idea.
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Every time we declare war (or commit troops overseas to a conflict area) we should put a surcharge of 20% on all federal taxes - AND FREEZE RATE changes until the end of the war.  So, if your rate is 25%, your "War Tax Rate" would be 30% (25*1.2).  When the conflict was over, your rate would drop back to pre-war rates.
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So, let's look at the impact WITH the Bush Tax Rates in 2002
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Assume an income of $100,000.
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In 2002 - Your Rate on $100,000 would have been 30%
But, because we sent troops to Afghanistan, your effective rate would have been 36% (30*1.2)
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In 2003 - We had troops in Iraq AND Afghanistan, your effective rate would have been 43.2% ([30*1.2]*1.2).
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We would have paid for the wars (which Bush kept "off-book") and had a much bigger incentive to get the hell out.  This would have moved some non-payers into payment status - and would have moved the rich from 35% tax rate to 51.84% - and how quick do you think they would have stopped the war!
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For 2011 rates, our our hypothetical $100,000 man would have gone from a rate of 43.2% back to 36% - since we left Afghanistan. But only for 2/3s of year and 43.2% for the 4 months we bombed Libya (somebody has to restock the bombs and stuff).  So yearly rate would have been 38.36% [(0.66*36)+(0.33*43.2)]
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Nincompoopery - Simple Ideas to Fix the World (TM)

1 comment:

Cliff C. said...

You have highlighted an important issue. Sadly, unless people have a relative or know someone else who was deployed in these wars, they can easily ignore them completely. When wars are ignored because there is no personal pain or price to be paid, there is no incentive to end them. Most people just continue going about their daily business, watching reality television, ignoring the real reality that is out there.