How Taxation Affects Income Inequality (with Phil Magness)
Phil Magness joins us to discuss the history of taxation in America, which sheds light on how we got to the convoluted system we have today.
Throughout the history of America, we have used a variety of methods to tax the income of the public. Prior to World War II, only a fraction of the population actually made enough money to reach a taxable threshold. However, during and after the war, that threshold was lowered by so much that about 90% of the population qualified, and had their taxes automatically deducted from their paychecks. There were also more deduction opportunities than there are today.
What assumptions do we make about income inequality? Is economic inequality inherently bad? How high is income inequality in the U.S.? What is a marginal tax rate? What is tax planning? What is modern monetary theory and what is it missing?
Further Reading:
Anti-Piketty: Capital for the 21st Century, edited by Jean-Philippe Delsol, Nicolas Lecaussin, & Emmanuel Martin
Capital in the Twenty-First Century, written by Thomas Piketty
Related Content:
What Paul Krugman Got Wrong About Alexandria Ocasio-Cortez’s 70% Tax Rate, written by Michael Makovi
Taxation: How the Government Funds Itself, Free Thoughts Podcast
A Libertarian Approach to the Green New Deal, Building Tomorrow Podcast