Template-Type: ReDIF-Paper 1.0
Title: Policy Options for Taxing the Rich
Author-Name: Lily Batchelder, David Kamin
Abstract: Batchelder and Kamin argue the United States must raise new revenue in
  order to reduce high levels of economic disparity, finance much-needed
  new services and investments, and address the nation’s long-term
  fiscal needs. They present a range of options that would raise tax
  revenue and increase the progressivity of the federal tax system.
  Policymakers can pursue a combination of incremental changes to increase
  revenues through the current tax system along with new tax structures to
  generate new revenue.  Both incremental reform and new tax structures
  require policymakers to acknowledge that the wealthiest Americans earn
  income and accrue wealth in fundamentally different ways than the rest
  of the country. A greater composition of income is derived from capital
  gains, dividends, and income flowing through business entities. Further,
  the actual share of income that those at the top derive from capital
  gains and business income may be substantially higher because
  individuals can defer paying tax, such as through unrealized gains on
  capital, or even eliminate the tax on it entirely, such as through a
  “step-up” in basis, which allows unrealized assets to pass between
  generations without being taxed.
Creation-Date: 2019-11-01
Keywords: tax policy, inequality
File-URL: https://www.economicstrategygroup.org/wp-content/uploads/2026/06/Policy-Options-for-Taxing-the-Rich.pdf
File-Format: Application/PDF
Handle: RePEc:cxx:wpaper:policy-options-for-taxing-the-rich