As the dust settles on another Tax Day in the United States, a stark contrast emerges between the fiscal responsibilities of everyday Americans and the windfalls enjoyed by the nation’s wealthiest individuals. The collective wealth of America’s 806 billionaires has reached a record $5.8 trillion, a figure that has nearly doubled since the 2017 Tax Cuts and Jobs Act implemented by Republicans and led by former President Donald Trump.
The Americans for Tax Fairness report, released earlier this month, underscores a wealth surge for billionaires from $2.9 trillion in 2017 to the current staggering total. The top ten U.S. billionaires, deriving their fortunes from finance and tech sectors, are now all centi-billionaires—holding over $100 billion each. This staggering concentration of wealth is evident, as these few individuals collectively control more wealth than the bottom half of American households, totaling 65 million households that share $3.7 trillion.
The report spotlights Jeff Bezos as the richest person in America with $198 billion, while Michael Bloomberg controls $106 billion. The billionaires’ wealth explosion is in part attributed to the tax overhaul, which included lowering the top income tax rate from 39.6 percent to 37 percent, doubling the estate tax exemption that favors dynastic wealth, and weakening the Alternative Minimum Tax designed to prevent the exploitation of loopholes.
The Tax Cuts and Jobs Act, which has faced widespread criticism for favoring the wealthiest, is set to have key provisions expire at the end of 2025. Republicans now seek to make these tax cuts permanent, a move that could further exacerbate the wealth gap in the U.S. An analysis by the Institute on Taxation and Economic Policy revealed that if made permanent, the richest 1 percent of Americans would see an average tax cut of $25,650 in one year, while the poorest 20 percent would see a mere $100.
Amid this debate, the report by Americans for Tax Fairness proposes that a modest capital gains tax on just the $3 trillion gain added by billionaires over the past six years could fund significant social programs. These include the forgiveness of all student debt, expansions of Medicare and the Affordable Care Act, and the provision of free preschool over the next decade.
Furthermore, the report calls attention to the sophisticated tax avoidance strategies employed by many billionaires, with some paying effective rates as low as 0.1 percent despite their staggering wealth gains. These strategies are complemented by the built-in advantages offered by the U.S.’s statutory tax rates to the rich. ATF Executive Director David Kass remarks, “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.”
In the face of these findings, the potential for policy changes looms, with President Biden and Senator Ron Wyden proposing plans to annually tax the wealth growth of the nation’s richest households. These proposals aim to raise substantial funds to improve public services for the American people and to reduce public debt.
Relevant articles:
– US billionaires have doubled their wealth since 2017 Trump tax overhaul
– As Tax Day Approaches, New Study Finds U.S. Billionaires Now Worth A Record $5.8 Trillion Americans For Tax Fairness, Mon, 08 Apr 2024 17:05:32 GMT
– US Billionaires Have Doubled Their Wealth Since 2017 Trump Tax Overhaul Truthout, Tue, 09 Apr 2024 21:16:14 GMT
– America’s 806 Billionaires Are Now Richer Than Half the Population Combined—a Lot Richer Mother Jones, Thu, 11 Apr 2024 11:34:25 GMT