“America Will Be Number One—in Taxes” (Review & Outlook, Nov. 16) makes valid points about the statutory top income-tax rate on multimillionaires, but it gives the wrong impression about U.S. taxes in two regards.

First, Congress raised the top marginal income-tax rate to above 90% in an effort to finance the military efforts in World War II in an existential battle for our future, not in a “bout of envy politics.” Of course, the average effective rate that people paid at that time was significantly lower.

Second,...

Individual Income Tax forms.

Photo: Daniel Acker/Bloomberg News

“America Will Be Number One—in Taxes” (Review & Outlook, Nov. 16) makes valid points about the statutory top income-tax rate on multimillionaires, but it gives the wrong impression about U.S. taxes in two regards.

First, Congress raised the top marginal income-tax rate to above 90% in an effort to finance the military efforts in World War II in an existential battle for our future, not in a “bout of envy politics.” Of course, the average effective rate that people paid at that time was significantly lower.

Second, the U.S. is a low-tax country. From 2010 to 2019, America’s federal, state and local governments raised about 25% of gross domestic product in taxes, well below the OECD average of 33% and the lowest in the G-7 by far. Passing the Build Back Better Act would raise revenues by less than 1% of GDP by the end of the decade and would not materially change these facts.

The U.S. will need more revenues to finance future investments in infrastructure and human capital, make Social Security and Medicare whole and control the federal debt. We have many options, from closing capital-gains loopholes to implementing a value-added tax or carbon tax, that would raise revenues while making taxes fairer and more efficient. Higher taxes need not hurt the economy; per capita growth rates were about the same from 1970 to 2015 in the U.S. and the OECD, even though OECD taxes were about one-third higher.

William Gale

Urban-Brookings Tax Policy Center

Fairfax, Va.

Evan Spiegel

Co-founder and CEO, Snap

Los Angeles

According to “The Real Biden Bill: At Least $4.6 Trillion” (Review & Outlook, Nov. 19), “The House bill will cost $2 trillion to $3 trillion more than CBO is estimating because Democrats have camouflaged the costs.” These multitrillion dollar cost manipulations make the Enron and WorldCom cases look like rounding errors.

At the same time, the Biden administration’s Securities and Exchange Commission appears ready to turn up the heat on corporate executives whose companies have accounting misstatements, especially with regard to executive compensation. Is bad accounting OK in government, but verboten in corporate settings? I’d like to see good accounting everywhere.

Dana R. Hermanson

Marietta, Ga.