Simon Proposes More Tax Increases in ‘White Paper’
Democratic presidential candidate Paul Simon, who said Tuesday that he might seek higher income taxes on the wealthy in his first year in office, on Wednesday proposed additional tax increases to reduce the budget deficit.
In a “white paper” detailing his deficit-reduction plan, the Illinois senator said that he would consider an oil import fee of $5 a barrel, raising $9 billion in annual revenues for the federal government. He would also seek a 10-cent-a-pack excise tax on cigarettes, raising $2.5 billion.
Simon said an additional $5 billion could be raised by taxing foreigners and non-U.S. corporations on income earned in the United States. He would also require corporations with overseas plants to pay income taxes in the current year instead of taxing such profits only when they are returned to the United States.
Simon said Tuesday that a 1% increase in the tax rate for individuals earning more than $100,000, or for a family of four with household income of more than $193,000, would raise $2 billion.