Yale Law professor Zachary Liscow argues that Congress should forgo complex proposals and lift existing tax rates to curb rising inequality and debt. He notes that a 2% wealth levy championed by Senator Elizabeth Warren faces steep constitutional odds, while state-level attempts lack national reach.

Research with University of Michigan economist Edward Fox shows the ultra‑rich borrow only about 2% of their income annually, making a borrowing tax generate roughly $50 billion over a decade—tiny compared with the federal budget. By contrast, raising the top ordinary income tax back to the pre‑2017 39.6% rate and modestly increasing capital‑gains rates could produce hundreds of billions in revenue.

Liscow warns that experimental taxes risk legal battles and limited returns, whereas higher marginal rates target income already captured by the tax system. Restoring historic rates and revisiting the corporate tax would deliver immediate fiscal relief without new legal uncertainty, delivering the most tangible benefit for policymakers.