I’ve been a bit mystified by this “redistribution of wealth” narrative that’s been so popular over the last few years. It seems that it applies to any tax increase on those in a high tax bracket. Almost as if current rates are somehow sacrosanct. A 35% marginal tax is not redistribution of wealth. But rise above that level, and all of a sudden there’s redistribution of wealth.
I remember when top marginal rates were 70%. I don’t ever remember hearing about redistribution of wealth. Top rates went down to 28%, then back and forth up as high as almost 40% (if I remember correctly) and never a peep about redistribution of wealth. Now, add a single dollar of tax bill of the upper income levels and it’s redistribution of wealth.
If you don’t support progressive taxation, the claim is valid. That would mean you support everyone paying the same amount. Not the same percentage, the same amount. The same $1,000 (or whatever) per person. Otherwise, income taxes ARE a redistribution of wealth. Using the “redistribution of wealth” argument about a minor change in the top rates is absurd.
