In the News
The economy is doing well. And you are doing well, if you have assets that make the economy work for you. If you don’t, then you are still struggling to get by as you were before.
From Heather Long at The Washington Post, See what reality looks like for the 40% of Americans who didn’t get swept up in the record-growing economy.
After a year of the new tax law, The Wall Street Journal’s Richard Rubin and Anthony DeBarros look at what has changed. Those earning between $100,000 and 250,000 were more likely to owe money and less likely to get a refund, while those in higher brackets were more likely. Doubling the standard deduction also made taxpayers across all groups more likely to rely on this, rather than itemizing.
Around the Internet
Washington Post’s editorial board discusses the shortcoming of a wealth tax and how other strategies would more effectively target the rich. They suggest repealing special treatment for capital gains and repealing the stepped-up bases at which assets are inherited. We agree - we think that without this treatment, the rich will still be able to avoid taxes as they do now.
Meet the average American millennial, who has an $8,000 net worth, is delaying life milestones because of student loan debt, and still relies on their parents for money
Hillary Hoffower profiles in Business Insider what life looks like for the average millennial. Reading this, I could not help but consider the difference between what life would look like for a millennial whose parents can give them plenty and a millennial whose parents are still living paycheck to paycheck. Without their own ability to build their wealth (and often complaining of a lack of guidance in doing so), millennials are victim to the friction between intergenerational wealth - those whose parents have wealth will watch it grow and be comfortable, those whose parents don’t will have to struggle to get by and not have an opportunity out themselves.
Nobel winner Paul Krugman discusses how the current tax system already distributes wealth away from blue states and into red states - so democratic proposals to redistribute wealth away from the rich are hardly radical. For democrats, their proposals can also spur development - something “pro-business” taxes have failed to do.