In the first few days of studying the federal income tax in law school, you learn some basics about the marginal tax brackets. Surprisingly, there are only about 5 tax brackets taxpayers can fit in. Even more surprisingly, those brackets end at about $373,650 (2010 Consumer Price Index Adjustments to the Bush Tax Cuts).  Sure, there are a bunch of carefully drawn tiers below this maximum amount, but none exist above it….the question is why? Well, the cynical (and therefore probably correct) answer is that elitist rich people create the tax code.

The less cynical, and more analytic critique of the tax code that I posit is this: we have a very unequal distribution of wealth these days, so why not have a very UNEQUAL tax code? Why not let the tax code reflect the society’s extreme inequality, and use it as an engine to fix it? Why do we stop creating tiers at a measly 350 Grand mark, and extend it up to 1, 5, or even 100 million in income?  The income tax has been MUCH higher in the past, around 90%!  That is unimaginable today, only because we are forced to believe this will dampen economic growth.  That is nonsense, and borderline propaganda.  It is time to tap one of America’s greatest Natural Resources:  Millionaires.

The current tax system greatly favors the Rich and lets the ever-shrinking Middle gnaw on what’s left.  It is unfair and crippling our economy and polity.   Higher tax rates for the rich does not constitute socialism.  Quite the contrary, it’s a return to our American roots and history.  It is time for a more sane tax regime, that reflect reality, not the interests of the Rich.