Billionaires are hoarding trillions in untaxed wealth. They want the Supreme Court to keep it that way
Billionaires are hoarding trillions in untaxed wealth. They want the Supreme Court to keep it that way
America’s wealthiest held $8.5 trillion in untaxed capital gains during 2022, and efforts to tax them will soon face Supreme Court scrutiny.
A new report from Americans for Tax Fairness found that America’s richest families accumulated $8.5 trillion in untaxed capital gains in 2022
America’s wealthiest families held an astounding $8.5 trillion in untaxed profits in 2022. According to a report from the nonprofit Americans for Tax Fairness, which analyzed Federal Reserve data, “one in every six dollars (18 percent of the nation’s unrealized gains is held by these roughly 64,000 ultra-wealthy households, who make up less than 0.05 percent of the population.” The report comes as the Supreme Court gears up to decide a case that could preemptively block any efforts to tax the wealth of billionaires.
The data looks at “quiet” income generated by “centi-millionaires,” Americans holding at least $100 million in wealth, and billionaires through unrealized capital gains. Those gains accumulate, untaxed, as assets and investments like stocks, real estate, bonds, and other investments increase in value. If those assets are not sold — or “realized” — they are not taxed, yet America’s wealthiest families can leverage that on-paper value increase to secure favorable loans with low-interest rates in lieu of using taxable income to finance their lifestyle.
“Of the $139 trillion in America’s national wealth, almost three-quarters (73 percent) is held by the richest 10 percent of households, over one-third (35 percent) by the richest 1 percent, and an astounding 11 percent — $15.2 trillion — is held by the handful of fortunate households that make up the billionaire and centi-millionaire class,” the report says. “The wealthiest 1 percent of households hold 44 percent of national unrealized gains ($21.2 trillion), with billionaires and centi-millionaires alone controlling 18 percent ($8.5 trillion).”
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"But what if I become rich... I should vote against my best interests just in case."
In terms of unrealised gains, that's kind of a tricky one. They certainly do benefit massively from unrealised gains though, like anyone would on paper.
The best quote for this I've ever heard is "Europeans vote like they'll one day be poor. Americans vote like they'll one day be billionaires."
Do these nimcompoops realize that the existing wealthy elite, few in their number, got that way by exploiting social safetynets and taxpayer funded infrastructure for their gains?
So cleary, if we want to be able to generate more wealth and more millionaires/billionaires, better social programs and infrastructure will get them there. Imagine how much easier it’ll be to become wealthy if you don’t have to give employees insurance, or tuition reimbursement? Or if there’s an amazing system of roads, rails, and ports to move your goods to consumers? God, you could become a successful businessman and still have a conscious. Best of both worlds.
Most times these people have chances to get big loans from financial institutions. They have good credit records and also they are trusted by many companies
Yeah and the worse thing is that if they try and tax that, the retail investors like you and me are the ones getting fucked while these people get richer because of more profitable arbitrage oppurtunities.
I'd go back in time and stop the founding of private equity.