Economic policy has a big impact on our lives. I believe the following changes to U.S. economic policy would have significant benefits. To start with, I give three changes to the tax structure that can be made in a revenue-neutral way, then three tax changes that would increase revenue, and finally three new programs that could be funded with the increased revenue.

• A return to the more progressive income tax rates of the 1960s with higher rates on higher incomes would reduce inequality and increase social stability.
• A more progressive capital gains tax with more brackets such that we have low tax rates on assets held for longer term (say 10-20 years) and higher taxes on assets held for shorter terms, say a week. This would encourage companies and individuals to invest for long-term gain.
• Convert the health care tax break from an employer tax break to an individual tax credit. I.e. move health care to be something that an individual manages, not an employer.
• A tax on wealth above $50M.
• Only allow a mortgage tax deduction on the first $150k of a mortgage.
• A carbon tax. Say 50% on coal and oil.
• Just like universal education, we should provide universal healthcare to our citizens. Let’s start with low-cost preventive care by nurse practitioners.
• A new federal program to pay sales tax for in zip codes with residents in the lowest income quintile.
• A universal stabilizing income that is nominally at some low level, (say $50/month/person) where the Fed or some similar quasi-independent body has authority to increase this during an economic downturn.

All of these are good ideas on their own; doing them together provides several synergies. A more progressive income tax, a wealth tax, reduced mortgage tax deduction, universal health care, and the sales tax program would all reduce economic inequality and will increase social stability.

Of course I didn’t give enough details and do not pretend to be a tax guru. This list is not a complete economic policy; merely something to talk about with me when you see me next.

_{Edited 7 Sept 2020 for grammar and readability.}