t long last, some Democrats are proposing ways to fund the wide array of social programs they’d like implemented in America as part of their “cradle to grave” vision for government. The democratic-socialist darling Alexandria Ocasio Cortez has been smart enough to phrase her proposals in Robin Hood terms, calling for a 70% tax rate for all incomes above $10 million. There are plenty of millionaires who fit that criteria – over 16,000 in the U.S. – with $245 billion in taxable income above the $10 million thresholds, or 1% of GDP.
While it would require the equivalent of 20% of GDP to fund all the social programs Cortez desires, taxing all income above “only” $1 million at 100% (assuming everyone continues working the same amount) would raise “only” 3.8% of GDP. There simply aren’t enough wealthy people to fund what Ocasio desires, as her 70% tax would only raise between $16.4 billion and $38 billion a year.