A Visual Guide to the Financial Crisis: Part 2

MISUAL GUIDE FINANCIAL CRISIS Part II 700 BILLION DOLLAR BAILOUT: WHO PAYS? If the bailout was funded like the rest of government spending Income greater than $42,000 per year? The average tax payer would have to pay $2,800 Pay more Income less than Pay less $42,000 per year? Every corporation will have to pay And $700 per employee $14,000 on average $21.5 billion from Social Security $98 billion will be borrowed $51 billion from the government itself $7 billion from Federal employee retirement funds $5 billion from China $5 billion from Japan $24.5 billion from foreign governments $3 billion from the U.K. $1.5 billion from Oil Exporters $10 billion from other nations $8 billion from state and local governments $22 billion from $4 billion from mutual funds everyone else $2 billion from US savings bonds $2 billion from insurance companies 20936610 $28 billion will $.18 per gallon gas tax be collected in collected in estate, gift, and $.39 per pack cigarette tax one year excise taxes $2.14 per bottle liquor tax 936611 100 How the bailout is actually funded Slash rates on ST Print money treasury securities Encourage foreign investment Print more money Pay interest on those securities Keep printing money Inflation OF 204936618 How the bailout could be funded without drowning taxpayers in debt A Wealth Tax Surcharge on Households with $10 Million: These households own more than 20% of our nations wealth $300 billion and have realized huge gains from manipulating capital markets. A modest 39% surcharge would level the playing field. Income Tax Surcharge on Incomes Over $5 Million: A 50% emergency tax to the folks who have profited the most from this unregulated bubble economy. $105 billion A Securities Transaction Tax: Discourage speculation with a 1 cent for every $4 investment tax $100 billion End Overseas Corporate Tax Havens: Profitable companies who pay no taxes could no longer hide off-shore. $100 billion Elimination of the Tax Preference for Capital Gains: Taxing wealth and work at the same rate. $95 billion A Corporate Minimum Income Tax: Two-thirds of US corporations pay no income tax. Where is their fair share of the bill for defense, health, $60 billion transportation, etc? A Progressive Inheritance Tax: The profiteers of todays economy will be passing on dynastic-sized fortunes largely made from low taxed capital gains. Time to pay the piper. $60 billion A "Disgorgement" Recovery From Profligate CEOS: Wall Street shelled out billions in bonuses to the top CEO's and managers last year. Time to get that back. $40 billion Elimination of Subsidies for Excessive CEO Pay: Closing loop holes and gimmicks allowing for lower 'reported' income to the government. $20 billion The Elimination of the Mansion Subsidy: Capping the home mortgage interest $20 billion deduction on mansions that do not need to be subsidized by everyone else. One year total: $900 bilion $200 billion left over? A real bailout of 'Main Streetť $50 billion for government refinancing of foreclosed homes. Benefits: Promotes $20 billion for the states to help deal with declining $130 billion invested annually in renewable energy. Benefits: Reduces our dependency on foreign tax revenues. Benefits: home ownership. Keeps the trains running on time. oil and stimulates the local economy. blog.mint.com wallstats.com/blog OF 204936611