Inequality keep growing at a time when US corporations are incurring record profits. How do we fix this? On Sunday’s op-ed for the Washington Post, Summers said that changing the tax code to eliminate loopholes that benefit the rich – such as capital gains exemption, estate tax provisions, and corporate tax breaks- would help the working poor and lead to economic recovery.
Eliminating the Bush Tax Cut – a 4% tax cut- on the One Percent would do little as the Super Rich earn the lion’s share of their income from stocks. Summers argued that “last year’s stock market growth represented an increase in wealth of about $6 trillion. It is unlikely that the government will collect as much as 10 percent of this given the capital gains exemption, the ability to defer unrealized capital gains and the absence of any tax on gains on assets passed on at death”.
Read Tax & Regulate The One Percent – By End Neoliberalism.
Picture credit: World Economic Forum CC by 2.0