The Marshall Plan:
(Disclaimer: This plan is constructed under the premise that I had full authority. I understand that it would be politically unfeasible to pass in our current legislature)
- Health-Care Public Option
This proposal will involve passing the public option that was originally part of the House’s America’s Affordable Health Choices Act. The Public option was taken out of the final version of the bill but it creates a Medicare-type public insurance plan that individuals would have the option of buying into as part of the health care exchanges that will begin to operate in 2014.
Savings by 2020: $400 Billion
- Tax the Worldwide income of US Corporations as it is earned
Income earned abroad also may be taxed by the country in which it is earned. To prevent such double taxation, U.S. companies are allowed to claim the foreign tax credit, which reduces their U.S. taxes by the amount of any income and withholding taxes they have paid to foreign governments.
The foreign tax credit is subject to limits that are designed to ensure that the amount of credits taken does not exceed the amount of U.S. tax that would otherwise have been due. Those limits also are intended to prevent corporations from using foreign tax credits as a way to reduce taxes on income earned in the United States.
Most income earned by the foreign subsidiaries of U.S. corporations is not subject to U.S. taxation until it is repatriated in the form of dividends paid to the parent corporation.
Under this option, all income earned by the foreign subsidiaries of U.S. companies would be subject to U.S. taxes as it was earned, regardless of when it was repatriated. To prevent double taxation, foreign tax credits would still be allowed. For determining the limit on those credits, however, the U.S. parent corporation’s overhead expenses would no longer be allocated between domestic and foreign activities.
Revenue by 2020: $65.2 Billion
- Financial Speculation Tax
Tax that is based off of a tax the United Kingdom has had for decades. A modest tax on financial transactions like trading stocks, options, futures and credit default swaps (0.25% on the sale or purchase of a share of stock).
Revenue by 2020: $2.1 Trillion