Democrats in the Senate have come up with another plan for how to save the looming sequester deal. Their plan includes a 30% minimum tax on incomes over $1 million a year, which is said to generate $54 billion in revenue. Another $1 billion would supposedly be raised by imposing a new tax for oil-spill clean up and ending a tax deduction related to business equipment overseas. They are proposing an equal $55 billion in spending cuts in defense and farm subsidies. This is the their grand plan.
Let's talk about the new taxes they've proposed, which the Republicans have already said aren't going anywhere. Between the minimum 30% tax rate on millionaires and the new tax and deductions, we are looking at $55 billion in additional revenue … over 10 years. So let's say that's about $5.5 billion in additional revenue every year (assuming no changes in economic behavior). Now consider the fact that our federal government spends about $9.7 billion every single day. That means that it would take the federal government less than one day to spend the money raised by this proposed tax. Is this supposed to be meaningful reform?