Sage Foundation Research Indicates Americans May Not Be Ready for Tax Increase on Wealthy
Economic inequality is high and rising. At the same time, many governments are struggling to balance budgets while maintaining spending for popular programs.
That’s prompted some presidential candidates to argue it’s time to raise taxes on the rich. Bernie Sanders is leading the charge and would create a new top income tax rate of 54.2 percent, up from the current 39.6 percent.
Hillary Clinton would institute the so-called Buffett rule to require individuals with adjusted gross incomes of over US$1 million to pay an effective rate of at least 30 percent, and she’d add a new 4 percent surcharge on anyone who pulls in $5 million or more.
As White House aspirants, other politicians and voters debate whether it’s time to once again soak the rich to spread their wealth around, it’s helpful to consider what prompted past governments – ours and others – to raise their taxes...