1/2: "The Benefit Theory of Taxation" and Its Discontents. @RichardAEpstein @HooverInst

https://www.hoover.org/research/biden-tax-agenda-seeks-turn-back-rising-tide


The situation is far more dangerous under the proposed Biden capital gains increase, for at a 50 percent tax rate, the new investment would have to generate a 12 percent return to make the sale worthwhile. Therefore, with such a higher capital gains rate, we can be confident of two key propositions: first, that the overall productivity of the economy will decline; and second, federal tax revenues will decline as well.