What you're not hearing about Trump's new plan to tax the rich
It's the worst idea since tariffs. Thank goodness it's a really small idea.
Update to Strategic View
Trump has told Johnson to include a new 39.6% tax rate for those earning more than $2.5 million in the tax bill working its way through Congress. Three weeks ago he said he wanted to, but wouldn't because it was politically untenable. It likely won't get through Congress's GOP majority with only a minority of GOP voters supporting it. But it's a large minority so we can't rule anything out. It will affect about 175,000 taxpayers, the top part of the top 1%, cost them about $35,000 each. It will raise about $6 billion a year in new revenues for the Treasury -- a trivial amount, swamped by the trivial tax cut of $10 billion by eliminating taxes on tips. It is insignificant in macro terms, but it is a dangerous step down a slippery slope. The worst risk is the disincentive effect on today's young entrepreneurs. All it takes is one -- who works a little less hard, takes a little less risk, and a trillion dollar market cap company fails to be born, depriving the world of employment, progress and well-being.