- Significantly higher marginal tax rates further up the income ladder. US high end marginal tax rates are historically and relatively low; at the same time the US runs an incredible deficit. It’s crazy.
- Increasing tax rates on dividend earnings for individuals, so that they converge to the income tax rates based on some income/earnings thresholds. Large share holders like Bezos can make millions via dividends, and get a far better tax rate than you or I. It doesn’t make any sense. For mutual funds and companies, etc., dividend taxation could be treated as now without much negative impact.
- Increasing tax rates on capital gains when realized. If Bezos wants to sell $10M of stock to buy a fancy new house and car, great, but at some level of capital gains it makes sense for the rates to rise as it otherwise becomes another kind of income tax dodge.
- Inheritance taxes increasing steeply with the amount of the estate. Sam Walton worked his ass off; his kids didn’t. It’s perfectly normal to want to leave your kids something, but after a certain point it seems rather a social anti-pattern to have a trust fund class, especially at extreme amounts of wealth (which is what we are talking here).
- Limits on loss depreciation for individuals. Perhaps not quite as important but also subject to a lot of abuse.
Of course, I also think there’s much that needs to be done with campaign finance reform, lowering corporate tax rates, automatic antitrust provisions that come into play when a company becomes relatively too big, and increased penalties for corporate externalities (like privacy violations, pollution, etc.).
Hope this helps. What do you think we should do?