Vice President of Federal Tax Policy at the Center on Budget and Policy Priorities.

Washington, DC
Joined May 2013
Since the 2017 tax cuts, we have been raising revenues like we are in a recession even though we are not in anything like a recession.
New @CenterOnBudget fiscal policy paper. The U.S. has 2 deficits: 1. A fiscal deficit 2. An investment deficit—our failure to adopt policies making folks better off. Fiscal policy should reduce both—not reduce one deficit by growing other. More revenue can do just that.
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New @CenterOnBudget fiscal policy paper. The U.S. has 2 deficits: 1. A fiscal deficit 2. An investment deficit—our failure to adopt policies making folks better off. Fiscal policy should reduce both—not reduce one deficit by growing other. More revenue can do just that.
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Like every other econ reporter, I've spent much of the past couple years trying to understand what A.I. will mean for the economy and for workers. But it's been frustratingly hard to reach any firm conclusions, because so much is uncertain -- how the technology will evolve, how quickly it will be adopted, how policymakers will respond.
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What amazes me is the attitude of so many of the centibillionaires. A 5% tax will not make any difference to the way they live. Their spending may be extravagant, but it is still much less than their (correctly measured) income. They know that, as gifted as some of them indeed are, they have benefited from extreme luck (and the help of the state, and, to speak like an economist, monopoly rents). They know that their effective tax rate is low, relative to what many others pay. They know that extreme inequality is extremely unpopular, and can lead to political unrest, backlash, or worse. They must admit that, morally, it is hard to argue for a society in which some become obscenely wealthy, while so many are poor and see their income stagnate. They typically have not indicated that they are building their wealth to eventually make the world a better place. But they are still willing to fight the tax, spending hundreds of millions in California to avoid paying the tax. Why? They simply think what is theirs is theirs, end of story. They believe in the slippery slope, and if they do not take a stand on this levy, the government will come back for more. They hate the state and the notion that their money will be misused? Or?
This is huge. A just-released SEC filing makes an extraordinary revelation: Mark Zuckerberg is getting ready to pay California’s 5% billionaire wealth tax and has signed an agreement to remain in California for 8 years. We are witnessing a global turning point unfold before our eyes. 🧵
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Chuck Marr retweeted
It is a basic principle of American democracy that the government can’t selectively target individuals simply because of their political beliefs or what they say. But that’s exactly what the Trump Administration is doing to Congresswoman Ilhan Omar of Minnesota. To understand why this is so appalling, it’s important to know the facts. Congresswoman Omar came to this country with her father when she was 12 years old. Five years later, her father became a naturalized citizen. If Ilhan had been 18 at the time, she would have had to apply for citizenship separately. But because she was 17, she became a naturalized citizen automatically. Congresswoman Omar went on to graduate from college, work as a community organizer, become the first Somali-American legislator elected to public office in the U.S., and win a seat in Congress. There, she has been one of the Trump Administration’s fiercest critics, which has led the president to repeatedly single her out as someone who he believes does not belong in this country. Now the Administration is actively trying to deport Congresswoman Omar, seemingly based solely on the unsubstantiated theory that she was actually 18 when her father was naturalized, and therefore is not a citizen. Federal agents have raided her home, confiscated personal records, and seized her phone — all to try and uncover a nonexistent smoking gun from 20 years ago that will somehow make their case. Think about that. The full weight of the federal government is being brought down on a law-abiding elected official because she has dared to criticize the president. And it’s not the first time this has happened. Under President Trump, the Justice Department has repeatedly gone after those he considers his political enemies — from the Attorney General of New York, to the former head of the FBI, to members of the Federal Reserve. In those cases, the prosecutions either stalled or were dismissed for having no basis in law, and the same is likely to happen in this case. But not before Congresswoman Omar’s life has been turned upside down, her legal bills have piled up, and she’s been forced to spend time fighting unsubstantiated charges instead of serving the people of Minnesota. The fact that any president, or any administration, is willing to engage in such transparent efforts to intimidate someone should outrage all Americans, regardless of how they feel about Congresswoman Omar’s political views. Because if this becomes the new normal, there’s no reason to believe it will stop with her — or that future presidents, in either party, won’t do the same.
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Yep, plus the tax cut
Would be interesting to calculate how much Trump’s gutting of tax enforcement alone has cost in extra interest spending.
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Because you still own the house?
“I’m old. I’ve paid my home off,” said Ray Warner, a 72-year-old Akron resident. “Why would I pay property tax?” Across the country, homeowners are asking the same question and revolting against property taxes at a scale not seen in a half century. politico.com/news/magazine/2…
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But we should:
We effectively don't have an estate tax anymore.
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Chuck Marr retweeted
"Graft at a previously unimaginable scale" Yes, that's a reference to Trump and his enablers Must-read from @crampell thebulwark.com/p/just-so-muc…
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Chuck Marr retweeted
The Federal minimum wage was effectively repealed over the last 17 years.
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Now do the United States:
Replying to @gabriel_zucman
@gabriel_zucman claims the French government doesn't have a spending problem, but a revenue problem. That's a hard sell when total general government revenue is 52% of GDP. Only Norway, Denmark and Finland -among OECD countries- see the government take a larger share of GDP. (And the gap with Norway is just oil revenue. ) Unless France hits the jackpot and finds oil off the coast of Calais in the North Sea, it will be hard to beat Norway. If you just look at tax revenue, excluding other revenue sources for the government, then France is near the top.
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Chuck Marr retweeted
Funding the IRS is absolutely essential to rooting out fraud and abuse in the federal budget. crfb.org/blogs/gao-304-billi…
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Totally insane levels of corruption and abuse of power are swirling all around us and my sense is that as angry as voters are about the cost of living they mostly are so awash in cynicism about politics that they don’t understand how egregious Trump is.
Billions of dollars’ worth of contracts predicting oil would fall and the S&P 500 would rise were placed about 15 minutes before Trump announced a U-turn on Iran in a post on Truth Social. CFTC staff began to investigate-- then were told to lay off. bloomberg.com/news/features/…
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“The idea that Mark Zuckerberg was sitting in his Harvard dorm room and would have been deterred from starting Meta if the capital gains tax rate was slightly closer to the ordinary income tax rate strikes me as categorically absurd,” argues @NatashaRSarin, professor of law at Yale Law School.
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(1/11) 🧵In my piece in today’s FT, I argue that the corporate tax is an excellent tool for taxing the same wealth that proponents of billionaires’ taxes (or the CA wealth tax) are reaching for. Link at end of thread.
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Chuck Marr retweeted
It seems that Rubio's speech was likely written by Nate "die Fahne" Hochman unpopularfront.news/p/the-gr…
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Chuck Marr retweeted
I think these charts are worth keeping in mind at the same time. 1. When we're talking about the typical person, wealth is largely a lifecycle phenomenon. 2. When we're talking about wealth, the typical person is largely a rounding error.
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Chuck Marr retweeted
Had a great conversation yesterday about small business with @omzidar @lilybatch and @amyhanauer . We discussed tax cuts and below: how the wealthiest "small" businesses --auto dealers, beer distributors-- are often legally protected from competition and not "small" at all
Co-authors of the Everywhere Millionaire, @omzidar and Eric Zwick, explain how tax cuts intended to protect small businesses have created a new group of extremely wealthy small business owners.
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So many great quotes/points in @riccoja paper. Even years into this, did a double take here on the 2/3: "in 2027, the top 1 percent of tax units will receive $5.2 trillion, or 23 percent of all income—an amount roughly equal to the income received by the bottom two thirds"
New work from @The_Budget_Lab looking at: (1) how much untaxed income there is at the top (2) why much of that income would disappear if you tried to tax it (3) how to redesign the tax code so that that (2) is less of a problem budgetlab.yale.edu/research/…
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And so true and needs to change: "gains are taxed on a realization or cash basis, not an accrual basis. If it were guaranteed that an investor would eventually pay tax on those gains, the distinction between cash income and accrual income would mostly be a matter of timing"
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