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Lily Batchelder
@
lilybatch
NYC and Washington, DC
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Frederick I. and Grace Stokes Professor of Law at @nyulaw. Former Deputy Director @WhiteHouse NEC; former Chief Tax Counsel @SenateFinance.
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1,752
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399
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11,763
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Ari Glogower
@AriGlogower
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Abr 3 |
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Longish thread with some thoughts on @RonWyden’s reported proposal to tax assets on a “mark to market” (MTM) basis. Some of the points covered below are based on my paper “Taxing Capital Appreciation.” @DavidMillerTax @dylanmatt @CountingCharity papers.ssrn.com/sol3/papers.cf… 1/
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Lily Batchelder
@lilybatch
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Abr 3 |
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Basically there in no tax until sale. Then the realized gain is taxed as if there was a constant rate of return, with a deferral charge to reflect the time value of money. Some readings on the subject: equitablegrowth.org/wp-content/upl… and jstor.org/stable/2006793…. 2/2
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Lily Batchelder
@lilybatch
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Abr 3 |
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Wyden hasn’t provided any details yet so it’s unclear how he’ll deal with valuation and liquidity. One option (proposed by Auerbach and others) is a retrospective accrual tax with a deferral charge. 1/2
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Lily Batchelder
@lilybatch
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Abr 2 |
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Wow, this is a game changer. Currently JCT estimates raising the CGs rate above ~32% loses revenue b/c TPs delay realizing gains. Taxing CGs as they accrue would allow taxing CGs and wages at the same rates (as Wyden proposes), raising a huge amount of revenue from the wealthy. twitter.com/RichardRubinDC…
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Lily Batchelder
@lilybatch
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Mar 22 |
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.@davidckamin or @gregleiserson would know the details better than me. But they would score it as having a cost. Even if their median projection is u<5%, they would assume a lot of variance and score in an expected cost basis.
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Lily Batchelder
@lilybatch
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Mar 6 |
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Looking forward to @KClausing’s new book! Don’t miss a chance to hear her talk about it at @nyulaw next Monday (3/11) from 12:45-2:00 in Vanderbilt 324 (40 Washington Square South). twitter.com/KClausing/stat…
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Lily Batchelder
@lilybatch
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Peb 20 |
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Thanks for joining us, and for the great paper and discussion!
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Lily Batchelder
@lilybatch
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Peb 16 |
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This is my favorite part of teaching the intro tax class -- introducing students to my favorite subject and seeing some of them catch the bug and go on to do amazing things. Congrats Daniel! twitter.com/nyulaw/status/…
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Lily Batchelder
@lilybatch
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Peb 15 |
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Thanks, Noah, and great thread!
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Lily Batchelder
@lilybatch
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Ene 31 |
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Thanks! If you're interested in even more on the subject, see papers.ssrn.com/sol3/papers.cf… and democracyjournal.org/magazine/43/fi… twitter.com/Noahpinion/sta…
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Greg Sargent
@ThePlumLineGS
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Ene 29 |
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Remarkable. In an interview with NPR, Howard Schultz seems to rule out any and all corporate governance reform, and repeatedly dodged on whether he'd support higher taxes on the wealthy, while claiming to care about deficits and inequality:
washingtonpost.com/opinions/2019/…
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Lily Batchelder
@lilybatch
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Ene 30 |
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Neither rain, nor snow, nor a polar vortex can stop me from talking tax with the awesome folks at @IUMaurerLaw!
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Lily Batchelder
@lilybatch
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Ene 29 |
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Yes, and that would be a great question for a conference! The academic part of my brain says MTM. The former Congressional staffer part of my brain says a wealth tax.
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Lily Batchelder
@lilybatch
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Ene 29 |
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Some suggest mark-to-market is better than a wealth tax and easier politically. A reasonable but debatable view. Politically, probably depends a lot on salience of exemption (e.g., $50 million under Warren proposal). 7/7
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Lily Batchelder
@lilybatch
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Ene 29 |
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Capital gains tax could raise a lot more if got rid of realization requirement and taxed assets on mark-to-market basis. But then would have to value all assets of taxpayers subject to the tax each year, just like under a wealth tax! 6/7
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Lily Batchelder
@lilybatch
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Ene 29 |
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Would actually lose revenue if raised CGs rate on wealthiest to 57%, w/no other changes. Reason is realization requirement. When raise capital gains rates, wealthy delay selling assets to avoid tax. JCT estimates revenue-maximizing CGs rate is 28-32%. 5/7 taxprof.typepad.com/files/kamin.pdf
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Lily Batchelder
@lilybatch
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Ene 29 |
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So if goal is to fund big expansions to social programs, raising CGs rate isn’t enough, at least according to JCT. Estimates here: warren.senate.gov/newsroom/press…, jct.gov/publications.h… 4/7
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Lily Batchelder
@lilybatch
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Ene 29 |
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Some have suggested raising taxes on capital income and repealing stepped-up basis instead. Are great ideas. But would only raise a tiny fraction of potential revenue from wealth tax. Maybe $250 billion (JCT) compared to $2.75 *trillion* under proposal (according to S/Z). 3/7
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Lily Batchelder
@lilybatch
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Ene 29 |
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Column includes interesting estimates from Saez / @gabriel_zucman that Warren proposal would effectively raise average tax rate by income on top 0.01% (income > ~$7.5 million)) to 57%. 2/7
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Lily Batchelder
@lilybatch
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Ene 29 |
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Thanks for the shout-out! Following are a few more responses to questions that have come up about @SenatorWarren proposal. 1/7 twitter.com/paulkrugman/st…
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