Thread by @genebsperling

1/ WEALTH TAX THREAD:

It is no secret that I am a supporter of the wealth tax. But I also admire many proposals on estate tax & capital gains put forth by other Democratic candidates. All reduce inequality and increase progressivity of tax code - and deserve support.

2/ I disagree with those - including friends I respect -whose first approach to this new wealth tax is to assume that we are helpless to avoid major tax evasion as we have seen with the estate tax. Tax evasion is a solvable policy failure not an unsolvable act of God.

3/ I don’t understand why those who argue for higher investment on traditional tax enforcement on the most well-off – and stress the exceptionally high returns of such policies – then fail to apply that same logic to enforcement of a new wealth tax?

4/ @gabriel_zucman & Saez rely on studies of foreign experience for estimates & show 80% of top 0.1% wealth is in public stocks, bonds & real estate that are easier to value & hard to hide. Why not ask what measures help hit their estimate rather than assume failure?

5/ Why not explore whether an annual wealth tax is more enforceable than when there is a lifetime to do estate planning? And isn’t it possible that major enforcement on this one tax on only 75K may be more effective than multiple efforts on several different taxes?

6/ And remember that this is hardly unprecedented: tens of millions of Americans have an annual tax on their main source of wealth – their home: This just applies the same principle to the main source of wealth of the 75,000 wealthiest households in the US.

7/ Advocates should acknowledge that valuing & administering to start-ups & closely-held private businesses will be more complex. But this a fraction of the wealth at stake, and there’s no reason to assume one can’t develop fair, common sense rules to deal with this.

8/ Using our tax code better to address wealth inequality & fund programs crucial to economic dignity is critical. We should be seeking to build up & strengthen – not instantly tear down – new tax ideas like a wealth tax for taking on this challenge.

9/ And as a final note, any of us who care deeply about excessive wealth inequality in our nation owe appreciation to the degree that Zucman & Saez have put their focus and expertise and been go-to economists on this issue for several years now.