Creating Opportunity Through a Fairer Tax System: The Case for Taxing Extreme Wealth Holdings and "Real" (Book) Corporate Profits and for Improving IRS Funding
18 Pages Posted: 28 Apr 2021
Date Written: 2021
This written testimony is primarily devoted to discussing the Ultra-Millionaire Tax Act of 2021 and the broader case for levying a federal tax on extreme wealth holdings. As is well known, both wealth and income inequality have exploded over recent decades, with the gains from economic growth disproportionately going to the richest Americans. Meanwhile, as this testimony will explain, our tax system is broken as applied to the ultra-wealthy, with many harmful consequences. A new federal tax on extreme wealth holdings, like the Ultra-Millionaire Tax Act, should be a central component of reforms for fixing this disgraceful state of affairs.
Secondarily, this written testimony provides support for both the Real Corporate Profits Tax Act of 2021 and proposals for improving IRS funding and for making it and other tax enforcement funding less dependent on the annual appropriations process. All of these proposals go together as reforms for raising revenues needed for public investment while helping to fix some of the ways in which our tax system is currently broken and easily exploited by tax gaming by ultra-wealthy individuals and families and by large corporations.
This written testimony was drafted for the United States Senate Subcommittee Hearing on "Creating Opportunity Through a Fairer Tax System" on April 27, 2021, The video of the hearing is available here: https://www.finance.senate.gov/hearings/creating-opportunity-through-a-fairer-tax-system
Keywords: Senate Committee on Finance, Ultra-Millionaire Tax Act, Ultra-Millionaires, Federal Tax, Wealth, Income Inequality, Ultra-Wealthy, Real Corporate Profits Tax Act of 2021, Real Corporate Profits Tax Act, IRS, Internal Revenue Service, Tax Gaming
JEL Classification: D31, H2, H24, H25, K34
Suggested Citation: Suggested Citation