Tax Proposals By Democrats 💰
Democrats want to tax the rich
Several new tax proposals have been floated by Democrats. Here's a quick summary of them below:
Senator Elizabeth Warren: levy a 2% “wealth tax” on Americans worth more than $50M and a 3% tax on those worth over $1B
Representative Alexandria Ocasio-Cortez (AOC): levy a 70% tax on incomes above $10M
Senator Bernie Sanders: his “For 99.8% Act” would tax the estates of the 0.2% of Americans who inherit more than $3.5M with brackets that top out at 77%
Why? Inequality is on the rise
Since the 1980s income inequality has soared in the US, with the top 1% more than doubling their incomes, while the bottom 50% have been nearly halved, in relation to each-other.
Huffington Post: Elizabeth Warren’s Tax Proposal Is Popular Even With Republicans
Washington Post: Democrats’ tax plans reflect profound shift in public mood
The left tends to lead with Warren’s photo and assert that higher taxes are right and are broadly supported, even by some on the right. Articles showcase proposals by Warren and AOC while also acknowledging that not all Democrats, such as Michael Bloomberg, are in support. Nothing is mentioned about alternatives to raising taxes.
The right takes a strong stance against increasing taxes on the wealthy and provides anecdotal examples of how taxing the rich doesn’t always lead to increased revenues. Further, the right uses strong language to call out “socialists” and “communists” on the left that want to redistribute wealth that would “warm the heart of Vladimir Lenin.”
Will taxing the wealthy work?
Despite President Trump’s tax cuts, average refunds are already down 8% this year due to the elimination of popular deductions. Meanwhile, the Federal deficit is estimated to increase to 4% for 2018. The total Federal debt now stands at almost $22T, which puts the US in the top 10 highest debt-to-GDP countries in the world. Something needs to be done, but neither side has provided a good fix yet. Tax cuts haven’t lifted the economy enough to lower the annual deficit and Democrats’ increased tax revenue would be spent on expensive new programs, further raising the deficit.
You win some, you lose some
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