Background
Our tax policies are widening the inequality gap:
- Millionaires pay a far lower tax rate today than they did 50 years ago. In 1960, the top 1% paid an effective tax rate of 31.2%. Now it’s only 21%.
- The wealthiest 400 people in the country pay an average tax rate of only 18% – a rate that’s lower than most middle-income families.
- The preferential tax rate for capital gains and dividends is only available to wealth holders, and the wealthiest 10% owns 80% of stock market wealth.
A number of policies are up for debate that could make our tax system more fair and just:
- End the Bush tax cuts for high incomes
- Enact the Buffett Rule and increase millionaire tax rates
- Tax wealth like work – tax capital gains like ordinary income
- Close the carried interest tax loophole
- Progressive estate tax