‘Tax the rich’? Democrats’ plans to make the wealthy pay a little more will barely dent America’s long slide from progressive taxation

  Demanding tax increases on the rich is back in fashion – both in the corridors of the House of Representatives and on the red carpet of the Met Gala.

  The House Ways and Means Committee outlined plans on Sept. 13, 2021, to move the top marginal income rate up a couple of notches to 39.6% and to introduce a 3% surtax on incomes above $5 million. That proposal would fall short of calls to really “tax the rich,” as Rep. Alexandria Ocasio-Cortez’s dress demanded at a glitzy New York bash just hours later.

Three takeaways from the New York Times’ bombshell Trump investigation

  Last week, The New York Times published a bombshell investigative report alleging that the Trump family engaged in “outright fraud” and other schemes to dodge federal taxes over many years. Through these schemes, the Trump family may have avoided or evaded as much as $500 million of taxes on the transfer of wealth from President Donald Trump’s parents to him and his siblings.

  If true, the revelations in the 14,000-word story are shocking. They bear on Trump’s personal finances, his credibility, his greed, and—perhaps most importantly—his policies. The revelations include:

Alexandra Thornton: Tax simplification that works for everyone

  The idea of simplifying the U.S. tax code is perennially appealing. Yet proposals to simplify the tax code often promise more than they can deliver, by dramatically changing the balance of who pays taxes or significantly reducing tax receipts needed to fund government services.

Jacob G. Hornberger: Help the poor by abolishing the income tax

  The standard leftist position on helping the poor is: Increase income taxes on the rich and give the money to the poor in the form of welfare. The idea is that it’s just not fair that someone has more money when someone has less money. By equalizing people’s financial conditions, through the force of a progressive income tax and a welfare state, the financial plight of the poor will be improved.

  The left, however, is wrong. As our American ancestors, who lived without income taxation for more than a century, learned, the best way to help the poor would be by abolishing the income tax (and the IRS).

Jacob G. Hornberger: Income taxation protects the rich and hurts the poor

  Statists love to tell us how the income tax helps the poor by taxing the rich and equalizing wealth. That’s just sheer nonsense. For one thing, most of the money they take from people with income taxes is used to fund the welfare-warfare state, very little of which actually ends up in the hands of the poor. Moreover, to the extent that the money does end up in the hands of the poor, it accomplishes nothing more than making them dependent on government largess rather than making them independent, self-sufficient individuals.

Edwin J. Feulner: Coveting the golden goose

  Are tax hikes on the way? Some federal lawmakers hope so. “It’s a great opportunity to get us some more revenue,” Sen. Charles E. Schumer, New York Democrat, recently said of the upcoming debate over the federal budget.

  You know what that means: calls to raise taxes on the rich. Lawmakers can’t seem to refrain from eyeing the golden goose.

Seth Hanlon: Congress should close the carried interest loophole

  In recent days Senate Minority Leader Mitch McConnell (R-KY) and House Speaker John Boehner (R-OH) have both suggested that they might be willing to allow some tax cuts for high-income individuals to expire. But Sen. McConnell—and evidently Rep. Boehner, as well—are reportedly still insisting that the Bush tax cuts on investment income be extended.

  The Republican leaders’ willingness to discuss top tax rates is a welcome step forward. But until policymakers address the gap between tax rates on ordinary income (income from wages, salaries, and so on) and the tax rates on investment income (capital gains and dividends), they will not have fully addressed the fundamental unfairness in the tax code.