If you've been following the pack of politicians seeking the Democratic Party's presidential nomination, you know that ways to tax the wealthy is a common thread.
But there are as many proposals to do that as there are White House wannabes, although Elizabeth Warren is leading in suggested changes to get more tax money from the rich.
There's the general wealth tax, corporate book profits tax, new Social Security wage tax, new Social Security net investment income tax (NIIT), new estate tax and every Democrats' favorite, repealing the Tax Cuts and Jobs Act (TCJA) lower rates for higher earners.
This weekend's Saturday Shout Out goes to a couple of items that look at the tax the rich ideas that have been floated so far in this 2020 presidential campaign.
Then there's the paper "Taxing the Rich: Issues and Options" by Lily L. Batchelder and David Kamin. The two New York University School of Law professors discuss advantages and challenges associated with four potential structural tax reforms: (1) dramatically increasing top tax rates on labor/ordinary income, (2) taxing accrued gains as arise and at ordinary rates, (3) wealth tax and (4) financial transactions tax.
You can read the abstract of Batchelder's and Kami's paper at SSRN and, if you want more details, download the full 51-page document.
The bottom line, as Nobel Prize winning economist and New York Times columnist Paul Krugman notes is that taxing the rich, per the findings of actual tax experts, makes a lot of sense and could raise trillions in revenue.
You also might find these items of interest:
- Are you rich? This interactive tool tells you
- Here's a HINT about Donald Trump and other rich taxpayers who pay Uncle Sam nothing
- Wealth taxes are losing appeal everywhere except on the Democratic presidential campaign trail