Jul 24, 2012 1:16 PM GMT
Tuesday's show presented the common-sense, no-nonsense Planet Money economic plan — backed by economists of all stripes, but probably toxic to any candidate that might endorse it.
1. Eliminate the mortgage tax deduction. It distorts the market and provides greater benefits for those buying expensive houses.
2. End tax deductions for companies providing health care to employees. It drives up usage, scope of coverage, and costs overall.
3. Eliminate the corporate income tax.
4. Replace income and payroll taxes with a consumption tax. It can still be a progressive tax to protect lower-income households.
5. Tax carbon emissions as an incentive to reduce pollution. Like a consumption tax, it can be structured to not harm lower-income families.
6. Legalize marijuana. Catching, prosecuting, and incarcerating dealers costs a fortune, and criminalizing drugs just makes the drug lords rich.