HOW TO TAX THE RICH
Ideas for combating income inequality from NYU Law professor and former Obama economic adviser David Kamin. http://ow.ly/4mJtIm
- •Why tax the rich?Income growth over the last three decades has been concentrated among those with the highest incomes, and the US needs revenue for rising healthcare costs, an aging population, and investments in areas such as infrastructure and education.
- •It’s not about the capital gains tax rate.Because the wealthy can avoid that tax by holding onto assets until death (this essentially wipes out taxes on the gains).
- •It’s about taxing bequests and gifts of property.This would raise at least $40 billion a year. Plus, this motivates people to sell assets when it makes business sense.
- •We can’t stop at tax reform.Tax policy alone is not enough to combat the extreme level of income inequality in the US. We need more policy tools, such as regulation to target unfair practices on Wall Street.