The US tax system is broken. Here are @JosephEStiglitz 10 proposals

[Passages]

Five Stars for Stiglitz, but I always give him 5 stars. ha ha


Here are @JosephEStiglitz

10 proposals to make #WallStreet pay its fair share.

Today at the @SenateBudget hearing.

Link to tweet

[multigraincracker]

1. Just bring back the same tax rates of when

America was great.

[Passages]

2. Concise and exactly right.

We already know it worked well.

[justaprogressive]

3. THOSE WERE THE DAYS...

Federal - 1959 Single Tax Brackets
Tax Bracket Tax Rate
$0.00+ 20%
$2,000.00+ 22%
$4,000.00+ 26%
$6,000.00+ 30%
$8,000.00+ 34%
$10,000.00+ 38%
$12,000.00+ 43%
$14,000.00+ 47%
$16,000.00+ 50%
$18,000.00+ 53%
$20,000.00+ 56%
$22,000.00+ 59%
$26,000.00+ 62%
$32,000.00+ 65%
$38,000.00+ 69%
$44,000.00+ 72%
$50,000.00+ 75%
$60,000.00+ 78%
$70,000.00+ 81%
$80,000.00+ 84%
$90,000.00+ 87%
$100,000.00+ 89%
$150,000.00+ 90%
$200,000.00+ 91%

Federal - 1959 Married Filing Separately Tax Brackets
Tax Bracket Tax Rate
$0.00+ 20%
$2,000.00+ 22%
$4,000.00+ 26%
$6,000.00+ 30%
$8,000.00+ 34%
$10,000.00+ 38%
$12,000.00+ 43%
$14,000.00+ 47%
$16,000.00+ 50%
$18,000.00+ 53%
$20,000.00+ 56%
$22,000.00+ 59%
$26,000.00+ 62%
$32,000.00+ 65%
$38,000.00+ 69%
$44,000.00+ 72%
$50,000.00+ 75%
$60,000.00+ 78%
$70,000.00+ 81%
$80,000.00+ 84%
$90,000.00+ 87%
$100,000.00+ 89%
$150,000.00+ 90%
$200,000.00+ 91%

Federal - 1959 Married Filing Jointly Tax Brackets
Tax Bracket Tax Rate
$0.00+ 20%
$4,000.00+ 22%
$8,000.00+ 26%
$12,000.00+ 30%
$16,000.00+ 34%
$20,000.00+ 38%
$24,000.00+ 43%
$28,000.00+ 47%
$32,000.00+ 50%
$36,000.00+ 53%
$40,000.00+ 56%
$44,000.00+ 59%
$52,000.00+ 62%
$64,000.00+ 65%
$76,000.00+ 69%
$88,000.00+ 72%
$100,000.00+ 75%
$120,000.00+ 78%
$140,000.00+ 81%
$160,000.00+ 84%
$180,000.00+ 87%
$200,000.00+ 89%
$300,000.00+ 90%
$400,000.00+ 91%

Federal - 1959 Head of Household Tax Brackets
Tax Bracket Tax Rate
$0.00+ 20%
$2,000.00+ 21%
$4,000.00+ 24%
$6,000.00+ 26%
$8,000.00+ 30%
$10,000.00+ 32%
$12,000.00+ 36%
$14,000.00+ 39%
$16,000.00+ 42%
$18,000.00+ 43%
$20,000.00+ 47%
$22,000.00+ 49%
$24,000.00+ 52%
$28,000.00+ 54%
$32,000.00+ 58%
$38,000.00+ 62%
$44,000.00+ 66%
$50,000.00+ 68%
$60,000.00+ 71%
$70,000.00+ 74%
$80,000.00+ 76%
$90,000.00+ 80%
$100,000.00+ 83%
$150,000.00+ 87%
$200,000.00+ 90%
$300,000.00+ 91%

https://www.tax-brackets.org/federaltaxtable/1958

[Silent Type]

4. Want to see GOPers win big, go back to marginal tax rates like this-- $44,000 + 72%.

Last edited Fri Jun 14, 2024, 03:02 PM - Edit history (1)

This is always bandied about as a way to cure current Deficits. It would be a voting disaster for whomever proposes it.

Agree with most points in OP, especially fully realized gains at death, Captial gain tax rates on par with dividends and earned income, etc.

[jimfields33]

5. That'd be a huge tax increase for everybody including the poor and working class.

[Trailrider1951]

7. Not if you factor in inflation. Example:

Value of $44,000 from 1959 to 2024

$44,000 in 1959 is equivalent in purchasing power to about $474,880.96 today, an increase of $430,880.96 over 65 years. The dollar had an average inflation rate of 3.73% per year between 1959 and today, producing a cumulative price increase of 979.27%.

This means that today's prices are 10.79 times as high as average prices since 1959, according to the Bureau of Labor Statistics consumer price index. A dollar today only buys 9.265% of what it could buy back then.

The inflation rate in 1959 was 0.69%. The current inflation rate compared to the end of last year is now 3.27%. If this number holds, $44,000 today will be equivalent in buying power to $45,438.37 next year. The current inflation rate page gives more detail on the latest inflation rates.

https://www.officialdata.org/us/inflation/1959?amount=44000

[jimfields33]

9. That's not how they will do it.

Actually if they do nothing, we’re in for a huge tax increase.

[Torchlight]

12. lol ok

[Passages]

8. Wow.

Thanks for that.

[msongs]

10. so I should pay a huge tax to feed the bloated out of control government monster? first get rid

of all corporate welfare and scam subsidies and you wont have to take everyone's money

[Igel]

11. It didn't actually bring in more money, however.

Because there were all kinds of ways of sheltering money.

[Volaris]

13. What are those numbers adjusted for inflation?

Cause I make about 50k now, and if 75% of that went to the feds, I'd be fucked.

[jxla]

6. Excerpt from Prepared Testimony

https://rooseveltinstitute.org/wp-content/uploads/2024/06/RI_Stiglitz-Wall-Street-Budget-Hearing_Testimony_062024.pdf

The comprehensive reform agenda I’ve laid out will take time and effort to
implement fully. But in the meanwhile, there are some simple reforms that could be done quickly:
1. Remove the tax advantage for capital gains over other forms of income;
2. Implement a constructive realization policy, taxing assets based on their
current value rather than only when the gains are realized, and fully tax any
unrealized/untaxed capital gains at death;
3. Implement a minimum income tax, along the lines of President Biden’s
proposed “Billionaire Minimum Income Tax” and Brazil’s proposed 2 percent
global minimum wealth tax now being discussed within the G20;14
4. Increase the minimum corporate tax rate;
5. Eliminate tax subsidies for fossil fuels and implement carbon and other
environmental taxes;
6. Expand and make permanent subsidies that increase productive economic
activity, such as R&D tax credits;
7. Implement a financial transactions tax;
8. Implement windfall profits taxes;
9. Reverse preferential tax treatment for income from land and other natural
resources;
10. Require greater transparency requirements for stock options, including
disclosure of dilution of existing shareholders and eliminate preferential
treatment (including their being subject to payroll and Medicare taxes) of
pay, including retirement benefits, for all high-income individuals, including
CEOs.