With a fresh Democratic majority in the House, some progressives have raised the idea of raising taxes on the very rich as a way to reduce inequality and implement new public policies. Major proponents of the idea, such as Alexandria Ocasio-Cortez (D-NY), have suggested the top marginal rate should be 70 percent, and argue this rate would not be too high a burden given that it was even higher during the extended economic expansion after World War II. Left-leaning economists assert that using this tax revenue to help expand the share of national income for lower wage earners will substantially improve their standard of living. They argue that in order to preserve social progress and advance the country further higher taxes will be needed to fund government investment in education, infrastructure, research and development, and other areas of public policy.

Critics of the 70 percent proposal argue it will be a drain on the incentives people have to become entrepreneurs and develop successful businesses. They warn that this in turn would dampen economic growth, and make the country less wealthy and less innovative over time. Critics further suggest that America's tax system is progressive enough as it is, and insist that new spending programs would actually require more taxes on the middle class.