America has been overspending and it now looks as if it is broke. The situation has to be controlled to ensure that the deficit is eliminated and the country becomes more secure and equitable.
The Institute for Policy Studies (IPS) has drawn up a proposal by identifying seven steps to ensure that the deficit is increased. Two of their main concerns are the military and tax cuts. America is not interested in making cuts in the military expenditure and also plans to extend the tax cuts. David Korten the author of the IPS study “America is Not Broke” is concerned that these two deficits alone will cause more problems that the fiscal deficit.
To cut down costs and try to solve the deficit the IPS has offered three proposals for progressive taxation. It is hoped that the society as a whole will improve and become healthier
1. The rich and wealthy do not pay as much tax as their secretaries do! This problem can be resolved by adding an additional five tax brackets for people earning more than $1 million.
2. According to FACT (Financial and Accountability and Corporate Transparency) and THN-USA, it is possible to save nearly $100 billion per year if corporations paid their taxes instead of declaring profits overseas. This coalition has exposed many corporations and individuals who have avoided paying taxes by using offshore tax havens. 80% of the major corporations use loopholes, deductions and subsidies to shift their profits legally around the world.
3. The National Nurses Union and several allies are up in arms against Wall Street. They demand a small fee to be charged on every stock trade, bonds and financial derivates. This financial transaction tax could bring in the revenues as there would be less speculation on high-frequency trading.
By providing a second source of revenue, the environment could be greener.
Try to lower the pollution levels and keep the environment green. This is as important as improving the economic situation. It is important to encourage growth by stimulating a huge investment program. Creating more jobs will help to cut the deficit.
4. If the fossil fuel subsidies were brought to a complete halt, there could be a savings of $12 billion per year and fewer threats to climate changes.
5. If a tax was introduced on carbon content of fossil fuels, we would use less oil which would lead to fewer emissions of greenhouse gases and air pollution.
Try to concentrate on saving more instead of going to war
Focus attention on making the country more secure than spending money on military and going to war. Jobs should not be equated with military spending. More than $100 billion is being spent on military. If cuts are introduced in this sphere, there could be a gross saving.
A proposal to close one third of overseas military bases has been backed by three Republican senators. Though the Cold War has ended, nearly 1,000 military are still installed in other countries. If one third of these overseas bases were closed nearly $550 billion a year could be raised. The country would profit by becoming greener, increasing infrastructure, creating more jobs and erase most of the deficits.
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