According to an article in the Washington Post, during her campaign for the 2020 Democratic presidential nomination, Massachusetts Senator Elizabeth Warren considered proposing an increase in federal income tax rates on high-income households before deciding to propose a 2 percent tax on household wealth above $50 million and a 3 percent tax on wealth above $1 billion.
a. Briefly explain the difference between income and wealth.
b. Compare and contrast a progressive income tax and a wealth tax in terms of the goals and principles of taxation discussed in this chapter.