Brookings
·
Published
January 18, 2024
Should America have trillionaires?
Leans Left
Commentary
·
Culture & Society
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Summary
- Brookings expert Darrell M. West highlights the growing income inequality in the U.S., where the top 10% of income earners now receive 48% of the country's total income.
- "Left unchecked, extraordinary money can lead to preferential economic treatment, advantageous political access, and unfair policy benefits."
Overview:
This article was written by Darrell M. West, focusing on the concept of trillionaires in America and the implications of such immense wealth.
- West highlights the growing income inequality in the U.S., where the top 10% of income earners now receive 48% of the country's total income.
- The article discusses the potential for individuals like Elon Musk to reach trillionaire status and the societal and political consequences of such wealth.
Key Quotes:
- "Left unchecked, extraordinary money can lead to preferential economic treatment, advantageous political access, and unfair policy benefits."
- "A 2022 national poll found that 82% of Americans favored 'closing tax loopholes and requiring all corporations with more than $1 billion in profit to pay a 15% tax.'"
What They Discuss:
- In 1976, the top 10% of earners in the U.S. earned 34% of total income, but this rose to 48% by 2023, indicating significant income inequality.
- Wealth accumulation like Musk's, growing at about 6% annually, could realistically lead to trillionaire status.
- Extreme wealth can undermine market competition and lead to preferential treatment in economic and political spheres.
- Wealthy individuals' policy views often differ from the general public, favoring low taxes and lighter regulation.
- Policy remedies suggested include higher taxes for ultra-high incomes and rigorous enforcement of current tax laws.
What They Recommend:
- Implement higher marginal tax rates for ultra-high incomes.
- Enforce current tax laws more rigorously.
- Eliminate deductions for qualified business incomes and reform capital gains taxes.
- Revise estate taxes and limit large-scale personal capital flows outside the U.S.
- Consider a wealth tax for mega-fortunes to address extreme wealth accumulation.
Key Takeaways:
- The article raises concerns about the societal and political impact of potential trillionaires in the U.S.
- It emphasizes the need for policy changes to address growing income inequality and the concentration of wealth.
- The author suggests several policy interventions to prevent extreme wealth accumulation and promote economic equity.
This is a brief overview of Darrell M. West's work from Brookings Institution. For complete insights, we recommend reading the full article.
Original Read Time
9 min
Organization
The Brookings Institution
Category
Israel-Gaza War
Political Ideology
Center Left