Tag Archives: Taxes

Raising the Top Marginal Tax Rate Isn’t the Answer to Wealth Inequality (We Need to Think Bigger)

Representative Alexandria Ocasio-Cortez believes that in order to pay for her Green New Deal, the US government should raise the tax rate on income over $10 million to up to 70 percent. Despite rabid opposition and cries of “socialism!” from conservative pundits and politicians, polls show the American people agree. People are tired of the growing concentration of wealth into the hands of a small … Continue reading Raising the Top Marginal Tax Rate Isn’t the Answer to Wealth Inequality (We Need to Think Bigger) »

Raise Taxes on Millionaires like Me

On Sunday’s 60 Minutes interview of Rep. Alexandria Ocasio-Cortez (D-NY), she discussed returning to a top marginal income tax rate of 70%. Many who heard this, including those who would never have incomes reach anywhere near the proposed 70% threshold, were enraged. As a high earner who might see his tax bill go up should anything similar to Rep. Ocasio-Cortez’s proposal become a reality, I say “go … Continue reading Raise Taxes on Millionaires like Me »

Underfunding IRS Helps Wealthy Avoid Paying Taxes

Thousands of the Internal Revenue Service’s “essential” workers will be required to work without pay during the ongoing government shutdown. With the IRS already underfunded under normal circumstances, these workers that have been called back in an effort to keep the tax refund season running smoothly will likely be even more overwhelmed. For millionaires and billionaires, this is great news. While most Americans don’t have … Continue reading Underfunding IRS Helps Wealthy Avoid Paying Taxes »

The Difference Between Marginal and Effective Tax Rates

Sunday, Rep. Alexandria Ocasio-Cortez (D-NY) was interviewed for 60 Minutes. When her views on our tax code and federal spending were brought up, she suggested we return to a 70% top marginal income tax rate. So-called fiscal conservatives, including supporters of 2017’s $2 trillion tax bill, immediately went on the defensive and put their foot in their mouths. Being disingenuous on Twitter might get conservative … Continue reading The Difference Between Marginal and Effective Tax Rates »

Tax Cuts Enrich Members of Congress Who Wrote Them

A year ago yesterday, Republicans in Congress cut taxes for the wealthiest Americans. Corporations and millionaires benefited greatly from the Tax Cuts and Jobs Act, while the middle class were the losers.. What most Americans don’t know, however, is the identity of one  group who received a particularly massive windfall from this legislation– the Republican who wrote it. Through manipulation of the “pass-through” filing status, … Continue reading Tax Cuts Enrich Members of Congress Who Wrote Them »

Stock Buybacks, not Wages, Surge One Year After Tax Cuts

The Tax Cuts and Jobs Act (TCJA) was marketed as a middle class tax cut that would promote higher wages. Exactly one year after its passage, stock buybacks have soared while wage growth has remained stagnant. During the first half of this year, a whopping $384 billion was spent on stock buybacks. Stock buybacks, which happen when a company repurchases its own shares from the … Continue reading Stock Buybacks, not Wages, Surge One Year After Tax Cuts »

Still No Wage Growth One Year After Tax Cuts

A year ago this week, Republicans passed the Tax Cuts and Jobs Act. Among other things, they promised their legislation would generate jobs and increase wages. Neither has happened. Data suggests that, despite Republicans positioning their tax cuts as a boon for the middle class, the results have been more beneficial to shareholders than people who actually work for a living. Out of 152 corporations … Continue reading Still No Wage Growth One Year After Tax Cuts »

GM Layoffs Result of Trump Tax Plan

On Monday, General Motors (GM) announced it will be shutting down five factories and cutting almost 14,000 jobs in North America. With this announcement just weeks before the holidays, thousands of American families, along with the communities in Maryland, Michigan, and Ohio that they live in, now face an existential financial crisis. GM’s executives and investors, will have no such problems, however, in large part … Continue reading GM Layoffs Result of Trump Tax Plan »

North Carolina Tax Amendment Jeopardizes Students’ Futures

Tuesday, North Carolinians will be able to vote on a ballot initiative that would change the economic trajectory of our state for generations to come. I’m talking about the amendment to lower the maximum tax rate on incomes from 10% to 7%. If approved, this change would severely hurt our state’s ability to govern effectively, as well as compromise the integrity of our education system. … Continue reading North Carolina Tax Amendment Jeopardizes Students’ Futures »

Vote As I Say, Not As I Do

Last week, in a last ditch effort to persuade voters before Election Day, President Trump made one of his most baffling false claims yet. At a rally in Nevada, Trump announced a new 10% tax cut for the middle class that would be passed by Congress and come into effect before the midterms. This came as news to, well, everyone. Congressional leaders had no idea … Continue reading Vote As I Say, Not As I Do »

Winners and Losers from the Tax Bill

By now, you’ve read all about the rich people who are now far richer since Republicans passed their tax bill. You might have even come across articles highlighting members of Congress who bought new yachts and properties with their tax savings. For just a moment, though, let’s reflect on the people on the other side of the inequality gap.   Members of Congress feign ignorance, … Continue reading Winners and Losers from the Tax Bill »

Trump’s 10% Tax Cut for the Middle Class Isn’t Going to Happen

On Monday, Trump floated the idea of passing a 10% tax cut on middle-income taxpayers. He gave his administration two weeks to provide a resolution making it happen. This, of course, is nonsense. It’s not going to happen. Trump and his allies in Congress have already shown their tax priorities. They already passed a massive tax bill, and lowering the burden on the middle class … Continue reading Trump’s 10% Tax Cut for the Middle Class Isn’t Going to Happen »

Our Tax Code is Broken When it Comes to Real Estate

Normally, the basic idea of our tax system is that you figure out how much you profit on a transaction, then pay tax as a percentage of that profit. Unfortunately, our tax code is broken, and people like Jared Kushner have taken advantage of that. The simplest explanation for this is that the tax code is very complicated, and it isn’t the responsibility of taxpayers … Continue reading Our Tax Code is Broken When it Comes to Real Estate »

Becoming a Millionaire Just Got a Million Times Harder

Capitalism, for better or worse, is a race to the top where the starting gun only goes off once. As much as we may like to think that our economic circumstances are determined by our talent and hard work alone, there are hundreds of years of history that play a role in influencing the path our professional lives take. There’s a reason white guys like … Continue reading Becoming a Millionaire Just Got a Million Times Harder »

I’m Not a Job Creator

Last year, Republicans unilaterally passed tax cuts that disproportionately benefited the wealthy and corporations. By giving tax cuts to wealthy Americans, particularly investors, Republicans claimed their tax bill would lead to substantial job and wage growth. Unsurprisingly, this has not happened. As an investor myself, I can tell you why: it’s because I’m not a job creator. For decades, conservatives have credited the investor class … Continue reading I’m Not a Job Creator »

How Many Tax Cuts Do Millionaires Need?

In Trump’s latest efforts to enrich wealthy people like himself, his administration recently proposed indexing the capital gains tax rate to inflation. This change would give billions of dollars in tax cuts to wealthy investors, while giving no relief at all to the working class. Right now, the capital gains tax is one of the only safeguards against the upper class’s unprecedented accumulation of wealth, … Continue reading How Many Tax Cuts Do Millionaires Need? »

Bye Bye Pell Grants, Hello Even More Student Loan Debt

Congressional Republicans sure have a hard time with math. In the most recent House budget, they included massive cuts to the Pell Grant program, which allows millions of students each year to better afford a college education, all in the name of fiscal responsibility. We can’t afford it, they say. It’s a sign of how quickly things change, I guess, that we suddenly can’t afford … Continue reading Bye Bye Pell Grants, Hello Even More Student Loan Debt »

Tackling Dynastic Wealth will be the Challenge of Our Generation

Since our country’s founding, dynastic wealth has threatened to upend the democratic principles promoted in the constitution. The influence of money in politics was first seen in the three-fifths compromise, and its pervasive nature has not been fully challenged since. Tax Day provides us with a moment to reflect on how our democracy is funded, and with the ruling in Citizens United v. FEC, the … Continue reading Tackling Dynastic Wealth will be the Challenge of Our Generation »

Are You Still Waiting on that $4,000 raise?

Last year, when the GOP passed their $1.5 trillion tax bill, they announced it would put $4,000 back in the average American’s paycheck. If this were true, this Tax Day, which is 15 weeks into the year, the average American should have an extra $1,153.85 of the $4,000. Do you? If your answer is an emphatic no, you’re not alone. Across the country, there has … Continue reading Are You Still Waiting on that $4,000 raise? »