Is 1920-1921 Worth Much Attention?: Today's Economic History
The Constitutionality of the Second Bank of the United States: Daily Economic History

Afternoon Must-Read: Heather Boushey: Taxes and Fairness in an Era of High Inequality: "(1) As inequality has increased, the tax code has not kept pace with this change...

...The tax code does less to reduce inequality than it did in the late 1970s. (2) Efforts to reduce inequality are not in tension with economic growth.... (3) There are policy options that can make the tax code more progressive that will have broad benefits for everyone.... There are many examples of changes that would be consistent with the literature. Two that are on the table right now would be Eliminating the “stepped-up basis” for taxation of bequests and expanding the Child Tax Credit.... Families passing along large estates to children... the potential damages that could have on the vitality of the economy... a loophole we should close... eliminating the carried interest loophole... transfer taxes, raising the ordinary income tax rates or limiting deductions and exclusions. We can also do a variety of things at the low end.... The Child Tax Credit... partially refundable for a set percentage of income (15 percent) over a set threshold (currently $3,000). The value of the tax credit has been increased and the threshold decreased, both temporarily, in recent years. I recommend making these reforms permanent..."

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