Should America have trillionaires?

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.