2019-11-11_Bloomberg_Businessweek

F I N A N C E

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Edited by

Pat Regnier

Democratsarerethinking

how the IRS treats financial assets

Democrats these days are throwing around plans

for new and unprecedented taxes on wealth, finan-

cial transactions, capital gains, and inheritances.

Tantalizing them are the trillions of dollars of

wealth in the hands of the richest 0.1%, much of it

escaping taxation.

Republicans passed their own tax-reform

bill less than a year after President Trump took

office, giving substantial breaks to the rich. While

a Democratic version in 2021 would require tak-

ing back both the White House and U.S. Senate,

almost every Democratic presidential candidate

says higher taxes on the wealthy are a priority.

Squeeze the billionaires, their thinking goes, and

the next president can not only fund progressive

priorities but also start to reverse a decades-long

trend of widening inequality. That’s far easier to

put into a tweet than into the tax code—merely hik-

ing income tax rates might not bring in much rev-

enue, especially from the top 0.1%. To really get

more from the rich, creativity will be required.

In white papers, books, and conference rooms,

progressive tax experts are questioning basic

assumptions about how the tax system works.

Bloomberg Businessweek November 11, 2019

ILLUSTRATION: MAXIME MOUYSSET. WYDEN: COURTESY U.S. SENATE. DATA: COMPILED BY BLOOOMBERG

Taxing the

Wealth That’s

Out of Reach