TaxProf Blog

Editor: Paul L. Caron, Dean
Pepperdine University School of Law

Friday, January 11, 2019

Tax Policy In The Trump Administration

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Ocasio-Cortez makes the case for a top marginal income tax rate rate of 70%. Another way of increasing federal revenue (and decreasing income inequality) is to do what Reagan did back in 1986: equalize taxes on income from wealth (capital gains) and income from work (wages and salaries).

There's no good reason that capital gains should be tax-advantaged. Paul Krugman wrote a piece back in 2012 that described the ever-so-frail rationale for taxing gains at a lower rate than wages. If anything, he feels even more strongly today. Here's a link to his 2012 piece:

Posted by: Gerald Scorse | Jan 11, 2019 12:37:23 PM