, 19 tweets, 6 min read
Today's @bopinion post is about taxing the very wealthiest Americans.

bloomberg.com/opinion/articl…
By now you've all seen that infographic showing how top tax rates have come down since the 50s:

Here's how the situation stands as of 2018.
Now, before freaking out about this graph, there are two things to realize.

First, the graph is zoomed in. The regressivity occurs within the very top brackets. We're talking about a very small # of incredibly rich people who are avoiding taxes.
Second, the graph only includes taxes, not spending.

Once you count government transfers, our fiscal system is actually pretty progressive, and has been getting steadily more so over the years (unlike, say, Sweden).

voxeu.org/article/rise-a…
Also, it's important to remember that the tax rates in the graph are only estimates. It's very hard to measure the income of the top few richest people, and this can change the estimated tax rate a lot.

brookings.edu/bpea-articles/…
But it's clear that the falling tax rates paid by the super-rich are a problem.

Support for increasing taxes on the rich stands at over 60%:
Meanwhile, some of the country's richest people have called for their own taxes to be raised.

For example, Bill Gates and Warren Buffett.

cnbc.com/2019/02/25/war…
And billionaire presidential candidate Tom Steyer.

usatoday.com/story/opinion/…
And Mark Zuckerberg.

cnn.com/2019/10/04/tec…
What will be the benefits of taxing the very richest Americans?

First of all, it will provide some revenue. Maybe not as much as people think, but definitely some. Especially if top taxes are raised in a variety of ways.
Second, high income taxes could prompt the super-rich to shelter their money within companies, as they did in the 50s and 60s:
davidsplinter.com/AutenSplinter-…

That might just make companies hold more cash, but it might increase business investment. And that would be good!
But most importantly, higher taxes on the super-rich would increase social cohesion.

It would make Americans feel like they live in a SOCIETY, rather than a dog-eat-dog world of winners and losers.
So how do we tax the super-rich?

First, we raise the capital gains tax rate.
Next, we repeal Trump's deduction for pass-through income.

cbpp.org/research/feder…
Next, we add more income tax brackets at the top.
Next, we raise the estate tax, and turn it into a true inheritance tax to make it much harder to avoid.

bloomberg.com/opinion/articl…
And if all that isn't enough...wealth taxes.

bloomberg.com/opinion/articl…
Taxing the super-duper-rich isn't going to flood the Treasury with money, or solve most of our social problems. But it's a way to ensure that Americans feel like they're all in this society together.

That's part of what I might call "democracy".

(end)

bloomberg.com/opinion/articl…
Missing some Tweet in this thread?
You can try to force a refresh.

Like this thread? Get email updates or save it to PDF!

Subscribe to Noah Smith 🐇
Profile picture

Get real-time email alerts when new unrolls are available from this author!

This content may be removed anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

Follow Us on Twitter!

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just three indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!