I think the truth is that raising taxes on the wealthy is just not enough. Both spending cuts and revenue increases are going to be necessary. Everyone wants cuts and doesn't mind taxes as long as they don't apply to their income or their programs.
I believe a comprehensive approach is the way to really put us on the right path.
Major Tax Reform - Eliminate loopholes and deductions, most of which go to corporations and the wealthy, lower and flatten rates and raise the minimum taxable income threshold. This way everyone has skin in the game. The rich will still pay “their fair share” as they will not receive special benefits and deductions.
Consider eliminating the capital gains and dividend taxes to encourage economic growth, this money is essentially taxed twice under the current system, once by the corporation and once when an investor realizes a gain.
Alternatively, consider replacing the income tax with a consumption tax. Tax would be paid only when items are purchased. This would encourage individuals to save rather than spend and is progressive in that the wealthy spend more money and would pay more tax. Everyone pays some tax, even those who would not normally file tax returns. Many economists feel this would be revenue neutral and could significantly increase economic growth.
Entitlement reform – Slowly raise the retirement age for Medicare and Social Security for individuals who are under 50. One of the biggest problems with these programs is that they have never been adjusted to the current life expectancy rate. When the programs were designed, average life expectancy was much shorter. The programs must be adjusted to remain solvent.
Cut spending across the board – Nobody wants to see their favorite program cut. Politicians are to often more concerned with being reelected than making difficult choices. We all need to put everything on the table. There should be no sacred cows. Shared sacrifice is the only way to solve these major problems.