Education
Funding Options for Comprehensive Public Education Reform: Tax Overview Contrary to scare tactics about cost, USA Today and other sources agree; about $70B a year, total, 50/50 60/40 66/33 split federal and state Remove social security cap; otherwise coming gap will have to be filled by general revenue Reduce estate tax exemption to earlier levels Increase top marginal rates from 37% to 45% above $400,00, 55% above $2,000,000 Tax worldwide profits of US corporations no matter where earned or incorporated Eliminate pass-through provision of Trump tax bill Re-look at dividend tax, now 15% Look at capital gains tax, now 20% Consider wealth tax Consider tax on earnings of tax-exempt organizations ( $3-% T in assets) Increase audit of high earners, now at the lowest level in 50 years. In summary ---broaden the tax base, and increase marginal rates A closer look at IRS Enforcement, (Audits) Source: IRS Data Book 2018 Enforcement and audits are way down, particularly at the top 2010 $5.5 on Enforcement, just under 1% of all returns audited; 100% of corp. over $20B in revenue 2018 $4.7 un adj. for inflation, audit rate down by 42% to .5 enforcement staff down 42% Individual Under $25,000 now audited at a higher rate than those over $500,000 (reversal) GAO - Government Accountability Office report: The gap between owed and aid is $458 B Enforcement bought in $59 B in taxes Return on enforcement; over $5 for every $1 spent.