A modest increase in taxes on the wealthiest households would boost the economy and close the budget gap. Economic Policy Institute estimates that well‑designed “confidence‑building” taxes on the ultra‑rich could raise ≈4 % of GDP in long‑run revenue, funding infrastructure, broadband, clean‑energy, education, health, and childcare—projects with high multiplier effects.
Higher marginal rates on capital gains and wealth correct the current low effective tax rates that distort investment decisions and encourage avoidance. Reducing extreme wealth concentration restores purchasing power to middle‑ and lower‑income families, whose spending drives demand and growth.
State and international evidence shows that targeted public investment yields far larger job gains than tax cuts, and progressive taxes can be introduced without large efficiency losses when carefully crafted.
A pragmatic design includes:
- Progressive brackets for incomes > $400k.
- A 1‑2% annual wealth tax on assets > $50 million, modeled on successful European examples.
- Strengthened IRS enforcement to close the $600 billion annual tax gap.
These measures will fund vital public goods, correct market distortions, and stimulate sustainable growth.
First sent on June 20 by Progressive Action
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