A Progressive Approach to Marginal Tax Rates

In recent years, economists have been engaged in robust academic debate over the top marginal tax rate, with leading researchers estimating the optimal rate to be 73 percent or even higher. Yet despite widespread public support for raising the rate from its current level of 37 percent, many policymakers and media figures have demonstrated misunderstandings over what marginal tax rates are and how they work.

On February 6th, Representatives Alexandria Ocasio-Cortez, Jan Schakowsky, and the Co-Chairs of the Congressional Progressive Caucus hosted a briefing to discuss the merits of increasing the top marginal rate, other means of increasing revenue and closing loopholes, and the history of strong economic and wage growth under high marginal rates in the 20th century. They were joined by:

• Thea Lee, President, Economic Policy Institute
• Jeffrey Sachs, University Professor, Director of the Center of Sustainable Development, Columbia University
• Eileen Appelbaum, Co-Director, Center for Economic and Policy Research
• Steve Wamhoff, Director of Federal Tax Policy, Institute on Taxation and Economic Policy

Watch the briefing here