A Wealth Tax Might Be Easier to Implement than You Think
A direct federal tax on wealth, as described in a January report from ITEP and proposed by Sen. Elizabeth Warren, could raise substantial revenue to make public investments, curb rising inequality, and is supported by a large majority of Americans. But would it work? Recent research highlighted in a new academic paper outlines approaches that would make it easier than you might think. At the outset, it is helpful to remember why we need a federal wealth tax and what the challenges are in implementing one. The nation’s income tax by itself fails to place a sufficient constraint on growing economic inequality. Our income tax simply does not tax all types of income that wealthy people have.