Since the Tax Cuts and Jobs Act of 2017, an economic divide has been widening at an alarming rate in the United States. The past several years have painted a stark contrast between the financial trajectories of average Americans and those at the very top of the wealth pyramid. A report released by Americans for Tax Fairness reveals a significant surge in the wealth of US billionaires, who have seen their collective worth climb to a staggering $5.8 trillion, effectively doubling since the enactment of the Tax Cuts and Jobs Act, orchestrated by then-President Donald Trump and a Republican-led Congress.
This unprecedented accumulation of wealth means that US billionaires now control one in every 25 dollars of American wealth. The top echelon of this exclusive club, all centi-billionaires from the realms of finance or tech, have enjoyed prolific increases in their fortunes. Elon Musk’s wealth, for instance, has ballooned by 850 percent. To put this in perspective, the cumulative wealth of these 806 individuals is now 1.5 times greater than the entire bottom 50 percent of American households, which equates to 65 million households sharing $3.7 trillion.
David Kass, executive director of Americans for Tax Fairness, articulates the gravity of this situation by stating, “Billionaire wealth doubling in just over six years is a clear signal that too much of America’s resources are flowing to the super wealthy.” The report highlights how while everyday Americans dutifully pay taxes and contribute to crucial programs, many billionaires have been using sophisticated methods to sidestep their tax obligations, with some paying effective rates as minuscule as 0.1 percent in the face of their colossal wealth gains.
The 2017 tax overhaul did more than just slash the top income tax rate and double the estate tax exemption; it weakened the Alternative Minimum Tax, designed to curb the abuse of loopholes by the wealthy. The result? A supercharged wealth gap that has implications far beyond mere numbers. Kass warns, “The last thing we need to do now is permanently extend the Trump tax cuts.” This sentiment is echoed by analyses indicating that making these cuts permanent would disproportionately benefit the rich while offering a paltry average tax cut to the poorest 20 percent of Americans.
On the flip side of this coin, the prospect of a modest capital gains tax on the $3 trillion gain by billionaires over the past six years could underwrite sweeping societal benefits like forgiveness of all student debt, expansions of Medicare and the Affordable Care Act, free preschool, and more, the report suggests.
In the meantime, the specter of the first trillionaire looms large on the horizon, a symbolic milestone that would signify the ultimate embodiment of economic disparity.
Relevant articles:
– US Billionaires Have Doubled Their Wealth Since 2017 Trump Tax Overhaul
– Who Wants to Be a Trillionaire?, Mother Jones, Tue, 09 Apr 2024 10:03:31 GMT