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:

  1. "Left unchecked, extraordinary money can lead to preferential economic treatment, advantageous political access, and unfair policy benefits."
  2. "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.

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Original Read Time
9 min
Organization
The Brookings Institution
Category
Israel-Gaza War
Political Ideology
Center Left

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