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Here are three ways taxing the rich would help the middle class and twoways it wouldnt.
Also, find outwho really pays more in taxes billionaires or the middle class.
More Money for Social Security
Social Security is a critical source of income for millions of retirees.
However, the trust fund is expected to run low within the decade.
Likely raising this to even $500,000 would be helpful, Nellen said.
The additional revenue could be used to address after-tax income inequality and the wealth gap in the United States.
Whether income taxes, no Social Security taxes, no estate taxes.
However, measures to tax the wealthy are difficult to enforce.
According to the Peterson Foundation report, Wealthy families also have substantial flexibility in their mobility.
So, a wealth tax could drive Americas fortunes out of the country and weaken the U.S. tax base.
However, researchers at theTax Foundationsaid taxing the wealthy could offset any potential benefits.
According to the Tax Foundation, Wealth taxes disincentivize entrepreneurship, leading to less innovation and less long-term growth.
A wealth tax reduces wages, destroys jobs and reduces the stock of capital.
All income groups are worse off under a wealth tax due to decreased economic activity.
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