Americans may be living under increasingly distortionary tax policies

The article says US fiscal pressures make higher taxes likely, and it argues that current proposals—tariffs, wealth levies and abrupt surtaxes—are creating economic distortions rather than raising revenue efficiently.

The United States faces rising fiscal pressure from large debt, an aging population and expanding benefit programs. The article argues that those pressures mean taxes will likely need to increase sooner rather than later. It reviews several policy ideas now in play and finds many create distortions rather than efficiently raising revenue. The author frames consumption taxes, income taxes and wealth taxes by their likely effects on incentives and economic behavior. Key points: - Tariffs have been expanded recently; the article reports their costs are often borne by consumers and that they tax only foreign-made goods, which can distort production choices and raise input costs. - Wealth taxes and one-off levies (the article cites a proposed one-time 5% billionaire tax in California) are described as difficult to implement because of taxpayer mobility and valuation challenges. - Some proposed surtaxes, such as an extra 2% on incomes above $1 million, are characterized as creating sharp cliffs that can introduce further behavioral distortions. Summary: The article contends that current tax measures prioritize political aims over efficient revenue-raising, which could reduce economic dynamism and long-term receipts. Undetermined at this time.