Fine print: those earning under $250,000 get a rebate.
Fattah claims that his plan retires the national debt within 10 years and shows the way to overhauling our tax system.
So, Fattah has been drinking from the same water fountain as the wishful thinking Republicans that would cut taxes in order to pay off the debt — because we would all run out and magically buy so much stuff that the new less tax revenue would multiple like voracious rabbits and overwhelm Washington with hundreds of billions of new little tax rabblets.
I don’t think so.
For Fattah’s plan to make sense it would need to be closer to 5-6% WITH NO EXEMPTIONS for anyone.
In 2010, the interest alone on our national debt was $413,954,825,362.17 billion.
A 1% tax would require a $40.2 trillion GDP just to handle the annual interest payment.
Since our GDP is $14.4 trillion then the tax would have to be at least 3% just to handle the interest payment.
A 6% tax would pay off the annual interest and reduce the debt by roughly $400 billion per year.
And for any of this to make sense we need to factor in that much of the wealth within that $14.4 trillion GDP escapes taxation — such as the rebate for those earning $250,000 or less per year, and less not forget all those folks with expensive CPAs and software programs to maximize their deductions for other things.
Calculators and calculations should be required of all solutions. Representative Fattah shows absolutely no fiscal calculations on his website announcing his plan. Fail, but an idea in the right direction.