To the Editor:
With elections finally over, Capitol Hill is now focused on addressing the fiscal cliff in an attempt to avoid massive tax increases that will hit most taxpayers. There are clear differences in how revenue should be increased, and it remains a contentious issue that hopefully will be resolved. I would like to offer my opinion on how it could be handled.
1. Increase the tax rate back to pre-Bush limits for any return where reportable income is greater than $1 million. This higher limit protects most small businesses, such as restaurants, dry cleaners etc., but includes hedge funds and real wealthy people, such as Wall Street types, sports and entertainment, etc.
2. Increase capital gains and dividends from 15 percent to 20 percent.
3. Cap itemized deductions at $30,000 a return. Taxpayers get to choose what deductions they want to take. This cap takes away huge deductions for the wealthy.
4. Eliminate all government subsidies for fossil fuel.
5. Increase the age for full Social Security retirement to 68.
6. Assess a new 1 percent national sales tax on all online purchases. This 1 percent will be used to help fund the U.S. postal system and save it from bankruptcy.
7. Open up liquid natural gas to be exported to Asia and Europe. Five percent of the gross sales would be collected as a tariff. This money would go into Social Security.
I did some calculations, and these changes would balance the budget, and not overly tax us all into oblivion.