Read on Twitter
OK...
1/ First, changing capital gains taxes won& #39;t solve our deficit problem, even a bit. FY 2021 we will have $2.3 trillion deficit.
The tax will *optimistically* raise $10 billion a year, or ~0.5% of our deficit, and about 0.2% of our whole budget.
https://budgetmodel.wharton.upenn.edu/issues/2021/4/23/revenue-effects-of-president-bidens-capital-gains-tax-increase">https://budgetmodel.wharton.upenn.edu/issues/20... https://twitter.com/Noahpinion/status/1388535235403415552">https://twitter.com/Noahpinio...
1/ First, changing capital gains taxes won& #39;t solve our deficit problem, even a bit. FY 2021 we will have $2.3 trillion deficit.
The tax will *optimistically* raise $10 billion a year, or ~0.5% of our deficit, and about 0.2% of our whole budget.
https://budgetmodel.wharton.upenn.edu/issues/2021/4/23/revenue-effects-of-president-bidens-capital-gains-tax-increase">https://budgetmodel.wharton.upenn.edu/issues/20... https://twitter.com/Noahpinion/status/1388535235403415552">https://twitter.com/Noahpinio...
2/ Most recent studies show, & the Joint Congressional Committee on Taxation agrees, that for every 1% in cap taxes increased, 0.75% to 0.5% disappears because of taxpayers& #39; response: the highest rate for any tax!
Overall, the tax just destroys wealth.
https://fas.org/sgp/crs/misc/R41364.pdf">https://fas.org/sgp/crs/m...
Overall, the tax just destroys wealth.
https://fas.org/sgp/crs/misc/R41364.pdf">https://fas.org/sgp/crs/m...
3/ In fact, the Tax Foundation, using similar models to the Joint Committee, estimates that Biden& #39;s tax will lower revenue by $133 billion over 10 years, mainly because it will cost jobs and growth.
CBO agrees a ~40% rate would raise far less than 30%. https://taxfoundation.org/biden-capital-gains-tax-rates/">https://taxfoundation.org/biden-cap...
CBO agrees a ~40% rate would raise far less than 30%. https://taxfoundation.org/biden-capital-gains-tax-rates/">https://taxfoundation.org/biden-cap...
4/ Literally the only way economies grow is through savings and investment. That& #39;s it. Our system already disincentives this, by taxing income used to invest, and then taxing the gains on investment, and then taxing fictitious "gains" that are just inflation.
5/ There is plenty of research showing that cap gains taxes are the worst taxes for growth, and almost no research showing the opposite. https://www.nber.org/papers/w12201 ">https://www.nber.org/papers/w1...
If we want the rich to pay more - taxes on unused land, progressive consumption & luxury taxes make far more sense.
If we want the rich to pay more - taxes on unused land, progressive consumption & luxury taxes make far more sense.
