No. of Recommendations: 0
I can't see this ever happening, but if it does I'll be sure to max out our 401K contributions ASAP. I should probably do that anyway.

So here’s the deal the White House should offer Boehner to help avoid the fiscal cliff.

(1) President Obama and the Congress should agree to temporarily raise the maximum marginal tax rate for those in the top 5 percent of all earners from 35 percent to 50 percent. This would be equal to the maximum rate in 1985 when Ronald Reagan was in the White House.

(2) Half of all the additional revenue garnered from this increase in the top tax bracket should be set aside to reduce the size of the federal deficit.

(3) The other half should be transferred as immediate tax rebates to households in the bottom three income quintiles. Nearly 93 percent of these dollars will go into the spending stream.

(4) This increase in the maximum tax rate on the richest families in the nation and the tax rebates for most others should remain in effect until the unemployment rate falls below 6 percent. Cutting the higher marginal tax rates on the wealthy when the economy is booming again will shift incomes to high savers who will help spur investment when new production capacity will be needed.

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.