Wealth Tax of One Percent on Those Whose Net Worth is More Than $10 Million
Those who have grown super-rich in our financialized economy often have ways to shelter income and avoid paying their fair share of taxes. A wealth tax, currently used by Spain, France, Switzerland and Norway, has proven an excellent way to ensure that we all contribute a fair amount.
From Runaway Inequality: An Activist's Guide to Economic Justice
Progressive taxes mean that the rich pay a higher percentage of their income in taxes than the poor. That was American tax policy from the New Deal until about 1980. A regressive tax means that the poor pay a higher percentage than the rich.
So what kind of tax system do we actually have today at the state and local level?
According to a January 2015 report by the Institute on Taxation and Economic Policy, the poor pay approximately double the tax rate as the super rich (see Chart 7.4). This means that state and local tax policies actually are accelerating runaway inequality. It’s not surprising, given the influence the super-rich exert over the political process.
Leopold, Les. Runaway Inequality: An Activist’s Guide to Economic Justice (p. 103). Labor Institute Press. Kindle Edition.