To the editor:
I am no expert on tax policy, but I can read.
Massive, permanent tax cuts in the last 25 years have caused a dramatic increase in the national debt by reducing the amount of money the government collects to conduct its business. These tax cuts have primarily benefited the richest citizens of the U.S., further increasing the gap between rich and poor.
According to the Congressional Budget Office, income inequality is increasing. In the third quarter of 2023, alomst 70% of the total wealth in the U.S. was owned by the top 10%.
Most Americans’ income is earned through wages and retirement. Wealth is different — wealth refers to the sum of total assets, and is concentrated in investments and capital. The 2017 tax cut created special business deductions, cuts in the corporate tax rate, the estate tax, and the top income tax rate. The result — 81% of the benefits went to the wealthiest 10% of households. Now, a couple can pass on $22 million worth of assets, tax-free. Since investments continue to make money as long as assets aren’t sold, the wealth discrepancy compounds itself.
The majority of Americans, both Democrats and Republicans, believe the ultra rich should pay highest taxes. A start to making the laws more fair would be to roll back the massive cuts from 2017, close loopholes, and fund the IRS properly so they have the technology and manpower to collect taxes from those who shirk their civic responsibility.
Jan Rygwelski Northport
