By midnight on April 15, roughly 140 million Americans will have filed their federal income tax returns and breathed a sigh of relief. Politicians from both parties, however, will spend most of the day criticizing our current tax system.
Conservatives bemoan that not enough people are paying taxes. They insist that a minority of “job creators” and “makers” are underwriting the social benefits that go to the “takers.” Liberals cite the growing concentration of wealth and lament that the rich don’t pay their fair share. In this new Gilded Age, they say, the 1 percent should be paying far more of their annual earnings.
Yet neither party seems willing to reform our tax system dramatically. Both avoid talking about the vital link between taxes and government spending. This was not always the case.
More than a century ago, during the first Gilded Age, lawmakers embraced progressive taxation. Responding to the massive inequalities between plutocrats and workers, policymakers used graduated taxes to rebalance the tax burden, reminding Americans about their shared duties to each other.
As the nation struggles through another period of rising inequality and social dislocation, history shows there are effective ways to address these issues.