TAXING THE RICH TO DETER INEQUALITY

June 28, 2022 - Douglas Myser

Taxing the rich to deter inequality. In the United States the gap between the rich and poor was heightened during the Covid pandemic. More people became poor, and more became wealthy. One simple reason for this is the IRS tax code, which changed in the 50s and early 60s, where the rich used to be taxed at much greater rates than today. The change in rates and what we tax is also to blame. We tax income in the United States, not wealth. When you have wealth and can shelter it from taxation, it allows you to build up more wealth and pay a lower rate than most teachers or firefighters. A fundamental question being asked by many in our country is, does that make sense, and can we as a society afford to do that, when we are on the verge of breaking at the seams in America ? Many have come to the conclusion that it makes no sense, and is contrary to what the large majority of nations are doing. Taxing the rich to deter inequality.

One idea from Sen. Ron Wyden, D-Ore, calls for applying a tax annually to just publicly traded assets. Other non-traded assets would instead be taxed when they are sold. This approach could become complicated for taxpayers if the value of their assets decline, and they have to reconcile the taxes they have already paid. Another approach would be to get rid of a mechanism that allows people to avoid paying taxes on the increases in the value of assets over their lifetimes, formally known as a step up in basis at death. If you are one of the Americans who have a tax debt, call our Tax Resolution Company for help. We are Nationwide and respected by Tax Resolution Companies and known as the Fourth Oldest Tax Resolution firm in America. We can file past due tax returns, then determine your Tax Relief options in the IRS tax code and State tax codes, including the IRS Fresh Start Program and options not in that program. We work hard to prevent IRS Wage Garnishment or Bank Levies from happening to our clients. Call for a free Tax Resolution Services consultation today. 1-888-689-7861