As we all know, the US has a debt and deficit problem. Raising revenues is one way to close the gap; obviously cutting spending is the other. This author approaches the problem from the revenue side arguing for a simple solution: raise rates of taxes we already have.
Some ideas will probably be unpopular with thus cries (e.g., raising business taxes). Others more so (e.g., ending step up basis). Anyway, discuss!
Posted by hypsignathus
3 Comments
– Eliminate itemized dedications and just raise the standard dedication slightly.
– Eliminate the social security contribution cap.
– Raise inheritance taxes and close loopholes regarding it.
Hidden option:
>!- Land value tax!<
While I agree with the general idea of just raising old taxes rather than inventing random new schemes, options like the author mentions like raising the corporation tax back up to 35% is one of the least efficient ways to do it.
Capital gains and business income taxes tend to raise the least relative amount of money while discouraging investment and growth the most.
While more politically palatable, it’s just one of those cases of “it’s good campaign policy up front, bad economic policy underneath”.
Makes a lot of very good points. ‘Taxing the rich’ in general is not good notion, just as generalized ‘UBI’ is not a good notion. But, it should be done efficiently and precisely. We need to be smart and target corporations that are taking advantage of the marketplace, not just raise taxes arbitrarily there, either. Once the ‘good corporations’ that operate ethically learn they have nothing to fear and a lot to gain, this will become more politically viable. This further incentivizes companies to ‘play by the rules’ in hopes they will be rewarded with better tax rates.
…Speaking idealistically. I know realistically separating a ‘good corporation’ that plays by the rules versus a ‘bad corporation’ that rigs them is easier said than done.