I’ve been remiss in not calling attention to the budget proposal from the Congressional Progressive Caucus. It’s not going to happen — but then neither is the Ryan plan. And unlike the Ryan plan, it actually makes sense.
The CPC plan essentially balances the budget through higher taxes and defense cuts, plus some tougher bargaining by Medicare (and a public option to reduce the costs of the Affordable Care Act). The proposed tax hikes would fall mainly on higher incomes, although not just on the top 2%: super-brackets for very high incomes, elimination of deductions, taxation of capital income as ordinary income, and — the part that would be most controversial — raising the cap on payroll taxes.