UCLA School of Law

In my testimony, I will briefly discuss several features of the income and estate taxes that limit the revenue collected from the wealthiest Americans. I will then discuss some possible reforms for raising taxes on the wealthy and increasing the overall progressivity of the fiscal system. There are a few key takeaways. First, the income tax struggles to tax capital income effectively. Second, we can make that system more robust through several reforms: repealing stepped-up basis, shifting to mark-to-market for more assets, and increasing the capital gains rate. Third, these reforms work better in tandem. Finally, some options for reform are more effective than others given the legislative uncertainty about how long reforms will last.