The gist is this: tax rates for the rich have fallen while tax rates for the poor have risen. We all know this. But seeing it with your own eyes, is quite a different thing. What is especially puzzling is that we all take this situation for granted and are much less enraged about it then we should. It used to be different:
By the middle of the 20th century, the high-tax advocates had prevailed. The United States had arguably the world’s most progressive tax code, with a top income-tax rate of 91 percent and a corporate tax rate above 50 percent.
And we can simply do that again.
But history shows that serious attempts to collect more taxes usually succeed.
Ask yourself this: If efforts to tax the super-rich were really doomed to fail, why would so many of the super-rich be fighting so hard to defeat those efforts?
Finding the optimal form of taxation is of course a big challenge. Personally, I would favor an inheritance tax to minimize distortions. But for the record: the stark inequality we see in so many rich nations today is not outside our control. We can and should change it.