Taxes and the Race for 2020

With a new presidential election just around the corner, many potential candidates are beginning to outline their policies, or at least throw some ideas out there to see if they stick. Healthcare and education are big talking points this early on, but one issue always seems to float to the top: taxes.

And why wouldn’t it? It’s an easy way for politicians to tell their voters “I’m going to save you money”, which is something everyone can get behind. However, taxes are already confusing, which makes them even more so when politicians begin discussing potential changes to tax laws.

I’m not even sure how a few of the proposed tax plans would even work. For example, I like Senator Elizabeth Warren’s proposed annual federal wealth tax of 2% on $50 million or more and 3% on $1 billion and up. However, it is constitutionally questionable as it is a “direct” tax and that is “not levied in proportion to the population of each state” (“Elizabeth Warren wants a ‘wealth tax.’ It might backfire.”)

With the US federal budget deficit rising by 17% in FY 2018 (up $113 billion from FY 2017) and seems to be only rising, it will be interesting to see if this affects how people will vote in 2020. (“US budget deficit expands to $779 billion in fiscal 2018 as spending surges”)

Leave a Reply