Now that the election is over, more and more names on the right can come out and say: We need to raise taxes.Glenn Hubbard, the Columbia Business School dean who was one of Romney’s top economic advisors, has a piece in the FT on how the US can void falling into the fiscal cliff.
It’s pretty sensible. He talks about ways to raise revenue (in a way that places more burden on those who can afford it) and he proposes a gradual shift in spending, rather than sharp austerity.
His first step: Raise taxes.
…The first step is to raise average (not marginal) tax rates on upper-income taxpayers. Revenue increases should first come from these individuals. This means closing loopholes. For instance, the Bowles-Simpson commission, which Mr Obama established, has proposed limiting tax preference benefits for upper-income households. Also, Martin Feldstein of Harvard University and Maya MacGuineas of the Committee for a Responsible Federal Budget have suggested caps on the amount of deductions relative to a taxpayer’s income. These ideas are good places to begin.
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