Addressing Wealth Disparities: Reimagining Wealth Taxation as a Tool for Building Wealth
34 Pages Posted: 24 Apr 2014 Last revised: 11 May 2016
Date Written: April 22, 2014
In the past three decades, research has indicated that the building of assets can have a sustainable impact on well-being. Yet to the extent that the tax system has incorporated this insight, it has been done in a piecemeal, ad hoc fashion, disproportionately benefiting those with wealth and further reinforcing wealth inequality. This paper argues that while reducing wealth concentrations is important, there should be an increased emphasis on how our tax system can build wealth or, put differently, level up. While the problem of wealth disparities may be too large for any one part of the federal policy toolkit to solve, I argue that the tax system can and should play a vital role.
Keywords: wealth inequality, wealth taxation, asset building, estate tax
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