#CoronaWealthTax #CoronaBonds #StateLocalDebtCrisis When the @FT begins to support wealth taxes, while @JoeBiden remains a skeptic, you know big changes are a’ coming, driven by unavoidable realities pol. 1/n
#CoronaWealthTax #CoronaBonds #StateLocalDebtCrisis 2. Right now many key US blue + battleground states, especially, are facing several crises at once. 2/n
#CoronaWealthTax #CoronaBonds #StateLocalDebtCrisis 3. First, Blue+battleground states are obviously bearing the brunt of the #COVID19Pandemic — more than 85% of all cases + fatalities to date 3/n
#CoronaWealthTax #CoronaBonds #StateLocalDebtCrisis 4. Blue+battleground states are also facing the sharpest rise in unemployment + biz closings since the Great Depression — and a sharp drop in sales tax revenues 4/n
#CoronaWealthTax #CoronaBonds #StateLocalDebtCrisis 5. As Muny bond mkt turmoil already reflects, left to their own devices, states like NY, NJ, Mich, Wash, Cal+Colorado face the prospect of a tough choice bet cutting spending in the midst of a Depression) + bond defaults 5/n
#CoronaWealthTax #CoronaBonds #StateLocalDebtCrisis 6. While the recent $2.27 tr fed Care Act did provide states+local govs with abt $190b of special aid, this was FAR less than these blue/BG states + their localities will need to service their exploding #CoronaDeficitd 6/n
#CoronaWealthTax #CoronaBonds #StateLocalDebtCrisis 7. However, an equitable, easy to implement solution is at hand for these states+ localities — one that avoids defaults or deep budget cuts+doesn’t leave them hostage to the tender mercies of the Trump Treasury+McConnell. 7/n
#CoronaBonds #StateLocalDebtCrisis 8. The solution has two parts, both of which can be implemented at the S+L level. First, a #CoronaWealthTax on relatively immobile, readily valued high-end real estate: eg 3-5% per yr surtax on the value of all priv properties over $2mm. 8/n
#CoronaWealthTax #CoronaBonds #StateLocalDebtCrisis 9. All taxes are subject to dodging, but compared with a farflung “all-wealth tax” proposed by @ft+ by progs like @ewarren, this #CoronaWealthTax wld be harder to avoid,based on valuations that all Blue/BG govs already have.
#CoronaWealthTax #CoronaBonds #StateLocalDebtCrisis 10. Part 2: Just as in tobacco settlement bonds, to capitalize this increased tax rev +spend it when it is needed most, s+l govs can issue #CoronaBonds, w anticipated rev from #CoronaWealthTax pledged to service them. 10/n
#11. All told, #CoronaWealthTax + #CoronaBonds provides an equitable sol to the emerging Blue+BG #StateLocalDebtCrisis.They already bear 75% of the pandemic +pay>60% of fed tax rev.This proposal will prevent them fr being held hostage by 24 Red States+ “President” #TrumpHoover.
#CoronaWealthTax #CoronaBonds #StateLocalDebtCrisis 12. Progs have a special responsibility. It is not just to be spectatorial critics — centrists can do that. Our job is offer specific proposals for radical change. Especially in the midst of an acute systemic crisis. 12/n
#CoronaWealthTax #CoronaBonds #StateLocalDebtCrisis 13. From that stndpt, GFC (2008)was a missed opportunity. We wasted time on Obama/Biden,venting (“Occupy”),drafting mild-mannered props for “affordable”health care, intl tax reform,+climate reform.We lost touch w key needs.13/n
#CoronaWealthTax #CoronaBonds #StateLocalDebtCrisis 14. This time around, w the incompatibilities — health, Xwealth, debt, oligarchy, social peace, weak leadership — clearer than ever, we need to organize around specific pragmatic ideas that will shake things up. Start now.
