The CPC plan essentially balances the budget through higher taxes and defense cuts, plus some tougher bargaining by Medicare (and a public option to reduce the costs of the Affordable Care Act). The proposed tax hikes would fall mainly on higher incomes, although not just on the top 2%: super-brackets for very high incomes, elimination of deductions, taxation of capital income as ordinary income, and — the part that would be most controversial — raising the cap on payroll taxes.Unlike the Ryan budget proposal, the progressive budget actually reduces the deficit, and it does so without smoke, fantasy and mirrors.
Although I couldn’t find share of GDP in the working paper, it’s right there on the home page. Revenues are 22.3 percent of GDP in 2021. That’s 3 points higher than what Ryan claims his plan would produce, although he hasn’t explained how he’s going to make up for those $3 trillion in tax cuts for the rich.
This would be a record level of revenue for the peacetime federal government, but it would still leave the overall tax take, including state and local, far below levels in most other advanced countries. And the point is that this would balance the budget without the savage cuts assumed in the Republican plan, or even the still painful cuts in the Obama plan. We supposedly face a fiscal crisis; why shouldn’t significant tax hikes be part of the response?
This budget exposes the fact that Ryan's presentation is not designed to reduce the deficit. It is intended to change the basic relationship of government with the American people, setting the model back to the days of the American robber barons.
The American MSM is not going to look at this budget proposal. It doesn't fit with the small-town atmosphere of the people in Washington,D.C. who style themselves as the "normal Americans" who should rule this country.