Roadmap for BidenTax Increases? Batchelder & Kamin, Taxing the Rich: Issues and Options (Sept. 18, 2019, Updated Feb. 1, 2020)

Lily L. Batchelder & David Kamin, both highly regarded tax lawyers and incoming members of the Biden Administration, with David Kamin serving as deputy director of the National Economic Council and Lily Batchelder nominated to serve as assistant Treasury secretary for tax policy, have spent the past several years as law professors at NYU Law studying how to address inequality by increasing taxes on the wealthy. They have laid out their proposals in a 51 page detailed analysis. The abstract of their analysis is as follows:

The U.S. economy exhibits high inequality and low economic mobility across generations relative to other high-income countries. The U.S. will need to raise more revenues in order to reduce these disparities, finance much-needed new services and investments, and address the nation’s long-term fiscal needs. This paper outlines policy options for raising a large amount of revenues primarily from the most affluent, first discussing potential incremental reforms and then focusing on four main options for more structural reform: 

(1) dramatically increasing the top tax rates on labor and other ordinary income, 

(2) taxing the wealthy on accrued gains as they arise and at ordinary rates, 

(3) a wealth tax on high-net-worth individuals, and 

(4) a financial transactions tax. 

Although we summarize the relative advantages and disadvantages of these approaches, we generally conclude that they all merit serious consideration. Several options are also complementary to one another. In practice, however, the relative strengths of each of these policies will depend to a large extent on how each is designed after it has made its way through the legislative and regulatory process.

Download the full paper by clicking Roadmap for BidenTax Increases? Batchelder & Kamin, Taxing the Rich: Issues and Options (Sept. 18, 2019, Updated Feb. 1, 2020).

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.

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