Progressive Taxation: Revenue Generation
Democratic socialist revenue reform taxes wealth and capital progressively while eliminating taxes on workers. This restructures the burden so workers pay less while universal services are fully funded.
Wealth Taxation
We propose a 2% annual tax on wealth over $10 million, 3% on wealth over $100 million, and 6% on wealth over $1 billion. We eliminate the step-up basis at death, which currently allows inherited wealth to avoid taxation.
Capital Gains Reform
We tax capital gains as ordinary income with no preferential treatment for passive income. This ends the absurdity where billionaires pay lower rates than workers.
Progressive Corporate Tax Reform
We implement tiered rates based on revenue and profit to discourage monopolization. Small businesses pay 15% on the first $1 million in profit to support local enterprise. Rates increase to 21% on $1 million to $10 million, 28% on $10 million to $100 million, 35% on $100 million to $1 billion, and 42% on profit over $1 billion.
We close all offshore loopholes completely. We tax stock buybacks at 4%. We eliminate subsidies to profitable companies. We add a 10% monopoly surcharge on companies with over 33% market share in any sector. We break up companies that exceed concentration thresholds.
Financial Transaction Tax
We implement 0.1% on all stock trades. This reduces speculation while raising revenue.
Carbon Tax With Worker Rebate
We tax emissions at the source, targeting production not just individual consumption. Revenue is returned directly to workers as a rebate. Workers break even or come out ahead because wealthy people consume more and pay more tax. This makes wasteful production and unnecessary consumption more expensive while shifting incentives toward efficiency and necessity.
Luxury Goods Tax
We implement progressive consumption taxes on luxury items.
Worker Tax Cuts
At the federal level, we eliminate the payroll tax on the first $50,000 of income and eliminate federal income tax on the first $40,000. We shift the burden to wealth and capital.
At the state level, we eliminate regressive sales taxes and replace them with progressive income and wealth taxes. We make state tax codes progressive rather than regressive.
The Math
This structure genuinely lowers the total burden on workers while fully funding universal services. When we eliminate health insurance premiums, co-pays, deductibles, childcare costs, student loan payments, and predatory rent, workers pay dramatically less overall even while receiving better services.
A worker making $60,000 currently pays $30,000 to $40,000 in combined public and private costs. Under democratic socialist reform, they pay perhaps $15,000 in public taxes and zero in private extraction, receiving better healthcare, free childcare, free education, and affordable housing.
The wealthy and corporations pay more. Workers pay less. Services improve. The math works when extraction is eliminated.