"Even a low 1% annual tax on wealth would be enough to fill the entire funding gaps of Social Security and Medicare in perpetuity, data from the Federal Reserve, the Congressional Budget Office and the two programs’ trustees show." beginning with "Curiously" -- about paragraph 25 :
Personally, I'd like to see most US federal tax revenues come from a wealth tax. It's much simpler and much fairer than the current absurd and obscene system. Maybe Jeff Bezos and hedge fund managers can pay taxes like the rest of us.
There has been public support for a wealth tax in the past, but in regards to very wealthy individuals, not everyone.
From a Forbes article from 2019: "In a Quinnipiac University poll conducted in April, 60 percent of respondents endorsed the idea of a wealth tax, defined as a 2 percent annual tax on “wealth over $50 million”; 34 percent opposed the idea. A February poll by CNN asking about a similar tax found 54 percent in favor and 39 percent opposed."
In those polls it is viewed as an additional tax, not a complete change over of the tax system, which is how it is typically discussed.
So the first challenge would be convincing everyday working Americans that a wealth tax on everyone (or everyone above a low income poverty threshold) would benefit them and would result in lower taxes for themselves and higher taxes for the very wealthy. It would be a very foreign concept, especially in a nation whose identity is around building wealth and then retiring with the money.
Other issues are how easy would it be for people to hide their wealth, offshore it, or protect it through loopholes? And what changes with corporations who already pay too little of the overall US tax burden?
"A number of European countries have implemented versions of a wealth tax with varying degrees of success. In 1990, 12 member nations of the Organisation for Economic Cooperation and Development (OECD) had net wealth taxes. By the end of 2018, just three member countries (Norway, Spain, and Switzerland) still imposed an annual net wealth tax, while Belgium, Italy, and the Netherlands levy wealth taxes on certain assets but not on total net worth. An OECD report explains that net wealth taxes are much less common than they used to be among member countries because of administrative difficulties, noncompliance, and undesired emigration; such issues ultimately led countries like Austria, Finland, Germany, and Sweden to repeal their wealth tax laws."
At least right now, America seems more comfortable with extra income taxes on the rich. A few states have enacted extra millionaire taxes to pay for public services, and President Biden has proposed a 20% minimum income tax on billionaires to make sure they're paying actual taxes.
Overall, I think discussions about different tax models are needed in the US because our tax system is a mess that puts a larger burden on the hard working middle class than it does on billionaires and corporations which, as you said, is absurd and obscene. Once we are more willing to discuss different tax system overhauls, we can find the one that reduces inequality, covers our nation's spending, and can reliably be enforced.
Am reading and hearing and watching on TV more discussion about a wealth tax.. keeping fingers and eyes crossed
Would also like Hakeem Jeffries have the Democrats ask their opponents if their district constituents are approving cuts to Social Security and Medicare.
"Even a low 1% annual tax on wealth would be enough to fill the entire funding gaps of Social Security and Medicare in perpetuity, data from the Federal Reserve, the Congressional Budget Office and the two programs’ trustees show." beginning with "Curiously" -- about paragraph 25 :
https://www.marketwatch.com/story/what-house-speakermike-johnson-has-said-about-social-security-and-medicare-babdf384
I asked author Brett Arends: "What are your sources for wealth tax info"
His reply:
The data starts with the data on US net worth of about $140 trillion [https://fred.stlouisfed.org/series/BOGZ1FL192090005Q]. A 1% tax would generate $1.4 trillion a year. That's equivalent to about 1/3 of current federal revenues [https://fiscaldata.treasury.gov/americas-finance-guide/government-revenue/#:~:text=Federal%20Revenue%20Overview&text=If%20you%20lived%20or%20worked,on%20foreign%20imports%20and%20exports.] and is more than enough to fill a funding hole worth $25 trillion (present value) over 75 years.
Personally, I'd like to see most US federal tax revenues come from a wealth tax. It's much simpler and much fairer than the current absurd and obscene system. Maybe Jeff Bezos and hedge fund managers can pay taxes like the rest of us.
A great topic to discuss.
There has been public support for a wealth tax in the past, but in regards to very wealthy individuals, not everyone.
From a Forbes article from 2019: "In a Quinnipiac University poll conducted in April, 60 percent of respondents endorsed the idea of a wealth tax, defined as a 2 percent annual tax on “wealth over $50 million”; 34 percent opposed the idea. A February poll by CNN asking about a similar tax found 54 percent in favor and 39 percent opposed."
In those polls it is viewed as an additional tax, not a complete change over of the tax system, which is how it is typically discussed.
So the first challenge would be convincing everyday working Americans that a wealth tax on everyone (or everyone above a low income poverty threshold) would benefit them and would result in lower taxes for themselves and higher taxes for the very wealthy. It would be a very foreign concept, especially in a nation whose identity is around building wealth and then retiring with the money.
Other issues are how easy would it be for people to hide their wealth, offshore it, or protect it through loopholes? And what changes with corporations who already pay too little of the overall US tax burden?
"A number of European countries have implemented versions of a wealth tax with varying degrees of success. In 1990, 12 member nations of the Organisation for Economic Cooperation and Development (OECD) had net wealth taxes. By the end of 2018, just three member countries (Norway, Spain, and Switzerland) still imposed an annual net wealth tax, while Belgium, Italy, and the Netherlands levy wealth taxes on certain assets but not on total net worth. An OECD report explains that net wealth taxes are much less common than they used to be among member countries because of administrative difficulties, noncompliance, and undesired emigration; such issues ultimately led countries like Austria, Finland, Germany, and Sweden to repeal their wealth tax laws."
https://www.pgpf.org/blog/2023/10/what-is-a-wealth-tax-and-should-the-united-states-have-one
At least right now, America seems more comfortable with extra income taxes on the rich. A few states have enacted extra millionaire taxes to pay for public services, and President Biden has proposed a 20% minimum income tax on billionaires to make sure they're paying actual taxes.
Overall, I think discussions about different tax models are needed in the US because our tax system is a mess that puts a larger burden on the hard working middle class than it does on billionaires and corporations which, as you said, is absurd and obscene. Once we are more willing to discuss different tax system overhauls, we can find the one that reduces inequality, covers our nation's spending, and can reliably be enforced.
"..is absurd and obscene" was Mr Arends' remark
Am reading and hearing and watching on TV more discussion about a wealth tax.. keeping fingers and eyes crossed
Would also like Hakeem Jeffries have the Democrats ask their opponents if their district constituents are approving cuts to Social Security and Medicare.
We'll see!!