Democrats Want to Tax the Wealthy

Posted by Wenzhuo Li.

Recently, a proposal to tax wealth finds support across party lines, along with the premise that the government should combat inequality. As leading Democrats roll out proposals to increase taxes on the rich, the American people are largely behind them.

In my opinion, there are several advantages about this proposal:

  1. It can reduce the gap between the rich and the poor and improve the fairness of the society.
  2. It can increase the contribution of the rich to society and make them more socially responsible.
  3. It can make poor citizens have better social security like health insurance.

In this Ben Casselman and Jim Tankersley’s article it said, “She says she wants to tax wealthy Americans to pay for programs for veterans, children and the homeless”. We can know that tax wealthy policy has its social responsibility and role in public welfare.

In the article, Ms. Warren said “Across party lines, Americans want the very wealthiest families to pay their fair share so we can have an economy that works for everyone.” Taxing the wealthy can pay for the economy gap.

Even there are lots of advantages of this proposal, it still has shortcomings:

  1. People might lose job opportunities. Taxing wealthy will reduce the investment, so some middle-class workers like investment advisers or some companies.
  2. The government may lose the support of the rich.

Anyway, it’s a good proposal but it still faces challenges; it is a socially responsible policy, but it still needs to pass the test of time and society.

Wenzhuo is a student at the Stillman School of Business, Seton Hall University.

Source:

https://www.nytimes.com/2019/02/19/business/economy/wealth-tax-elizabeth-warren.html?register=facebook