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November 15, 2012
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Want Bipartisan Tax Reform? Ask the Libertarian!

:icontbschemer:
TBSchemer Featured By Owner Nov 15, 2012
So long as each party continues to demand that the other give up its principles, there can be no compromise. Not on taxes, not on anything else. Demands for tax hikes are not compromise. Demands for tax breaks without covering them with new revenue are not compromise. It doesn't matter how many treats for the other side you put into your proposal- if you're asking them to accept a plan that violates their most fundamental principles, you're not compromising.

To give you all some perspective, I want to show you what a real bipartisan compromise plan might look like.

In these debates over the tax code, what do the Democrats care the most about? Finding new revenue, and ensuring most of it comes from the rich.
And what do the Republicans care the most about? Cutting tax rates, and ensuring that nobody's tax rate increases.

So here's how we solve this. We give the Democrats full control over the source of revenue, with the one condition that the revenue must come from eliminating tax credits and deductions, not from hiking tax rates or imposing new forms of taxes. Then, we link cuts in the tax rates to the raising of revenue. We also must ensure that we're taking the wind out of the class-warriors by giving a better deal to the lower tax brackets than to the higher tax brackets.

So the Democrats can eliminate any deductions they want for revenue, but it will be accompanied with cuts in the tax rate of a proportional nature, with the factor depending on the tax bracket it hits:

Tax brackets
10%: Every $1 of new revenue comes with $1 of cuts in the tax rates.
15%: Every $1 of new revenue comes with $0.90 of cuts in the tax rates.
25%: Every $1 of new revenue comes with $0.80 of cuts in the tax rates.
28%: Every $1 of new revenue comes with $0.70 of cuts in the tax rates.
33%: Every $1 of new revenue comes with $0.60 of cuts in the tax rates.
35%: Every $1 of new revenue comes with $0.50 of cuts in the tax rates.

In this way, the plan is revenue positive even as the tax rates are reduced. Even better is the fact that the Democrats get to choose both the size and the distribution of the cuts. This plan should give both sides something they want while raising a significant chunk of revenue to help reduce the deficit. Additionally, this plan is progressive, egalitarian, conservative, and libertarian all at the same time. This is what real compromise looks like.

Do you like this plan? Do you think the Republicans would accept this plan? Do you think the Democrats would accept it? Do you think Obama would accept it?
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Devious Comments

:iconkitsumekat:
kitsumekat Featured By Owner Nov 16, 2012
Add increasing the import tax and making the tax cuts 45% for everyone and I'll agree with you.
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:icontbschemer:
TBSchemer Featured By Owner Nov 17, 2012
Increasing the import tax? Are you seriously suggesting the same protectionist policies that Herbert Hoover implemented?
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:iconkitsumekat:
kitsumekat Featured By Owner Nov 17, 2012
Yes.
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:icontbschemer:
TBSchemer Featured By Owner Nov 17, 2012
So your goal is to speed up the onset of the Obama recession? I have to hand it to you, that would certainly be a good strategy for making Obama's reelection look like the disaster it was.
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:iconkitsumekat:
kitsumekat Featured By Owner Nov 17, 2012
No. There is barely an import tax for third world countries and even if there are, the tax is under a dollar. If we raise the import tax, that should offset some tax revenue.
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:iconferricplushy:
FerricPlushy Featured By Owner Nov 16, 2012  Hobbyist Artist
You do realize Obama offered Boehner $10 in spending cuts for every $1 of tax increases and the speaker of the house refused. If you can't compromise with a 10 to 1 favor then you obviously have no intention of doing any work.
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:icontbschemer:
TBSchemer Featured By Owner Nov 16, 2012
Hikes in the actual tax rates are non-negotiable. It would completely violate the basic principles of every Republican, conservative, and libertarian. It's not compromise if you're deliberately violating the principles of the people you're trying to bargain with.

Obama doesn't want compromise. He just wants to make a show of it, but ensure that the deal is too poisonous for the Republicans to touch. If he actually wanted to compromise, he would offer Boehner the same plan with additional revenue through elimination of tax credits and deductions, rather than through hikes in the marginal tax rates. Obama is one of the shittiest leaders this country has ever had.
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:iconferricplushy:
FerricPlushy Featured By Owner Nov 16, 2012  Hobbyist Artist
Dude you are the biggest bullshitter, the only reason republicans refuse to raise taxes is to appease their campaign contributors. They have been given overwhelming favor in negotiations and absolutely refuse to negotiate. Obama gives them ten to one favor and they still refuse to cooperate, there's nothing they can do about that.
And I'm fully aware of what Americans for Prosperity is and why it's destroying this country.
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:icontbschemer:
TBSchemer Featured By Owner Nov 17, 2012
As long as you refuse to acknowledge that people are allowed to have principles other than your own, you will never be capable of compromise.
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:iconsahidenethare:
SahidenEthare Featured By Owner Nov 16, 2012   Writer
It's the kind of plan we often see in Belgium.
Personally, I think the USA has become too divided because of the two party system. It's become an Us vs Them thing rather than electing the most capable government. Because of that, the people are quick to demonize the other party instead of trying to understand where they're coming from. That makes compromises very hard to pull off for today's politicians.
It's quite a distressing social evolution.
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