Some of the architects of the 1990s tax policy that President Barack Obama invokes as a model say taxes should be higher and reach deeper into the middle class than the president has proposed to solve a fiscal dilemma.
Taxes should be raised by $1.8 trillion over the next decade and capital gains should be taxed at 28 percent, up from the current 15 percent, according to a report released today by the Center for American Progress, a Washington group with ties to Democrats. Many deductions would be converted into credits, and taxes would rise by an average of $468 in 2017 for households earning between $100,000 and $250,000 a year, a group that Obama has largely pledged to shield from heavier burdens.
“By reforming our tax system, we do it in a progressive way and we raise the revenue that’s needed to run an effective government,” John Podesta, a co-author who was chief of staff under President Bill Clinton, told reporters on a conference call today.
The plan’s co-authors include Robert Rubin and Lawrence Summers, who each served as Treasury secretary for Clinton.
Also listed as co-authors are former Clinton administration members William Daley, who was Commerce secretary, and Evercore Partners Inc. Chairman Roger Altman and Leslie Samuels, who were top officials at the Treasury Department. Daley and Summers also worked in the Obama administration, and Podesta is now chairman of the Center for American Progress. Another co-author is Antonio Weiss, global head of investment banking at Lazard, Ltd.