If the 1 percent were taxed at a higher rate, the government would be able to reduce national debt, protect important social programs and provide enough funding for crucial government expenditures, while also reducing taxes for the middle class.
The top 1 percent holds onto hundreds of billions of dollars that, in plenty of cases, get passed down generationally for decades or centuries.
Over the next three decades, an estimated $16 trillion, almost the entire current gross domestic product of the United States, will be passed down via an inheritance.
These inheritances should not necessarily be taken away and redistributed among the population, but it is questionable whether or not it would make much of a difference in the life of Charles Koch, CEO of Koch Industries, if the government taxed his $43 billion of wealth and put it toward the betterment of the country in which he lives.
Those who are perpetually at the bottom of the socioeconomic ladder struggle to survive, living paycheck to paycheck, but those who are at the top rest comfortably on their inordinate sums of cash. The wealth gap is extremely wide in the United States and is continually widening year after year. Telling multibillionaires to give a little back to their country is not completely out of bounds when there are people who can barely afford to buy food to feed their families each week.
According to former U.S. Secretary of Labor Robert Reich, the top 1 percent’s share of the national income has doubled over the past 30 years while the richest 10th of the top 1 percent’s share has tripled. Inconceivably, tax rates have significantly dropped by over 50 percent in the past 60 years for those who are in the top 1 percent.
The estate tax, which only affects less than 5 percent of households, has also been seriously scaled back. While the rich continue to grow richer, their taxes continue to plummet at an alarming rate. If the wealthy were taxed at the same rate as they were 50 years ago, they would be paying close to $48 billion in taxes this year alone.
Over the coming years, that money could easily add up to trillions of dollars that can be used to accommodate all of the nation’s expenses while still managing to curb the national debt and lower taxes for both the lower and middle classes.
Democrats and Republicans alike should be salivating at the idea to help take the financial strain off the backs of the majority of U.S. citizens. If this course of action is taken, the huge sums of money from taxing the 1 percent could be allocated properly to help fix the costly problems that plague the United States.
Many people on the left have been in favor of this type of tax plan, while some members of the GOP have been staunchly against it.
With a new Republican president who also happens to be a billionaire, it does not look as though taxes for the wealthy are going to go up any time soon.
On the other hand, it is uncertain whether or not President Donald Trump pays taxes himself, so the future of tax policy remains uncertain.