Raising Another Trillion in Revenues

Larry Summers argues it’s plausible that we can raise another $1 trillion+ over the next ten years – here’s how:

The failure to tax capital gains at the point of death costs the federal government about $50bn a year. Since its removal would both raise money in the future, and induce earlier and greater realisations of capital gains in the short term, its removal would likely add well over $500bn during a 10-year period. I believe it is plausible to raise $1tn over the next 10 years by going after provisions that cause what adds to wealth and spending not to be regarded as income.

About ozidar

I'm an Assistant Professor of Economics at the University of Chicago Booth School of Business and a Faculty Research Fellow at National Bureau of Economic Research. You can follow me on twitter @omzidar. http://faculty.chicagobooth.edu/owen.zidar/index.html
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2 Responses to Raising Another Trillion in Revenues

  1. Owen,

    I have heard conservative economists make a very convincing argument against capital gains taxes on the basis of fairness, which is to say, why should we tax the purchase of “future goods” at any higher rate than we tax the purchase of goods in the present?

    I support more progressive capital gains taxes, but I justify it by utilitarian metrics. Is there a “fairness” argument in support of progressive capital gains taxes that you like to use? My Econ profs are rather conservative, so I could use some backup from the other side.

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