Richest in U.S. Have a Few Tricks to Avoid Democrats' Tax Plans
- Economists highlight wealthy Americans’ tax-paying acumen
- Warren floats wealth tax, Ocasio-Cortez proposes rate hikes
If Democrats want the wealthy to pay more into the U.S. Treasury, they’ll need to contend with one fact: the rich are very good at dodging taxes.
The top 0.1 percent have become expert in shifting and re-labeling their income in response to tax incentives. That skill is why some on the left are proposing blunter tools to tackle inequality. Massachusetts Senator Elizabeth Warren, who’s exploring a run for president, is proposing a wealth tax, a 2 percent annual levy on fortunes of more than $50 million and a 3 percent tax on the assets of billionaires.