Weekend Listen: Can the US Actually Tax Billionaires?
Summary
Bloomberg’s Stephanie Flanders hosts Harvard economist Jason Furman and reporter Caitlin Riley to discuss the challenges of taxing the ultra-wealthy. They analyze proposals like wealth taxes and unrealized capital gains levies, debating their constitutional validity and economic impact. The conversation also explores how AI-driven shifts from labor to capital income may further erode the tax base, necessitating reform.
Topics discussed
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Introduction: AI's threat to the income tax base and wealth tax proposals
Current political landscape and erosion of the tax base on the wealthy
Constitutional hurdles and practical issues with federal and state wealth taxes
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Stepped-up basis, borrowing against assets, and taxing unrealized gains
Logistical challenges of taxing unrealized gains and public opinion on estate taxes
The 'death tax' myth, political influence, and capital mobility in the US vs Europe
AI's long-term impact on labor share and the future of capital taxation
Outro, credits, and sponsor ads for Hartford, Brex, and ChatGPT
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