[Press Release] Introducing the OLIGARCH Act to Tax Extreme Wealth and Combat Aristocracy - Reps. Barbara Lee, Summer Lee, Jamaal Bowman, and Rashida Tlaib ( lee.house.gov )

conditional_soup , 10 months ago

Cute name, but does it have a realistic shot of going anywhere?

Arotrios OP , 10 months ago (edited 10 months ago)

Depends on how the 2024 elections turn out.

Barbara Lee is targeting Feinstein's seat, and she has enormous pull on the democratic side. She's looking to take the national stage, and I believe that this legislation will be her signature goal during her campaign - while drawing a contrast between herself and Schiff and Porter, who are also eyeing the seat. I think that if the Dems take the house back, and if the public shows strong support for the legislation, there's actually the political capital to get it done, especially if Schumer keeps the Senate.

The tax is actually quite modest (no more than 8% for the highest earners), but it's unique in how it's structured, as it's based off of not of a set number, but the dynamic of median income per year. This is what really caught my attention - this is actually a very smart, modest tax designed to capture as many centrist votes as possible, while insulating the middle class entirely from any fallout - it only starts on incomes that are 1000 times the median wealth. For reference, in 2019, median wealth in America was $140,399, so if the tax were in play then, it would start at wealth totaling over $140,399,000 - and only at 2% at that tier.

So the math is basically very centrist and non-threatening when considering the small number of people it will tax and the modest rates - remember that the capital gains tax used to be over 70% (back when we had things like clean water, affordable housing, and free college).

So do I think it has a shot of getting anywhere? Yes, but not till after the elections, and only if the Dems take the house. If Barbara Lee gets Feinstein's seat, I think it's much more likely - the California delegation usually follows the Senators' lead, and Lee has proven herself a powerbroker in the House already.

Edits: I grammar and spel gud

Syo , 10 months ago

Real change is hard, and this is the way by introducing bills for debate and review. It's not going to pass. But it opens the conversation for 2024 and 2026 bills to be reviewed during those Congress sessions.