Concerns about inflation are pervasive today, but the child tax credit is not inflationary if paid for with new revenue. There is plenty of room to raise taxes on a progressive basis, without economically harmful effects, and there are many revenue options that would be constructive for our economy when used for investments that broaden opportunity. Income and capital gains tax rates are historically low. House Democrats have proposed raising the top long-term capital gains rate to 25 percent from 20 percent and imposing a new 3 percent income surtax on individuals earning over $5 million a year.

Source: Washington Post September 16, 2021 21:21 UTC