It's Time for a Fairer Tax System
American workers pay more in taxes on their labor than billionaires pay on their fortunes. The system is rigged — and we have the data to prove it. It's time to change the conversation.
The Crisis
For decades, tax policy in the United States has shifted the burden away from accumulated wealth and onto working people. The result is a level of inequality not seen since the Gilded Age — and it's accelerating.
The wealthiest 1% of Americans hold more wealth than the entire middle class. Since 1990, the share of wealth held by the bottom 50% has barely moved, while the top 0.1% has nearly doubled its share. This isn't an accident — it's the predictable result of a tax system that rewards capital over labor.
Top 0.1% own as much as bottom 80%Income from wages is taxed at rates up to 37%, plus payroll taxes. Meanwhile, income from investments — capital gains and dividends — is taxed at just 20% at the top rate. The result? A nurse, teacher, or electrician often faces a higher effective tax rate than a hedge fund manager.
Payroll taxes are the #1 federal tax for 65% of householdsUnder current law, unrealized capital gains — the growth in value of stocks, real estate, and other assets — are never taxed until sold. Billionaires borrow against their assets to fund their lifestyles, avoiding income tax entirely. When they die, those gains are wiped clean through stepped-up basis. This is the "buy, borrow, die" strategy.
"Buy, Borrow, Die" — legal tax avoidance for the ultra-richThe Evidence
The numbers tell a stark story. Wealth concentration has surged while tax rates on the rich have plummeted. Here's the data that should be driving the national conversation.
The top 1% now holds a larger share of national wealth than at any point since the 1920s.
Source: Federal Reserve Distributional Financial Accounts
As top tax rates fell, wealth concentrated at the top — a pattern visible across decades.
Source: IRS, Federal Reserve, Tax Policy Center
When all taxes are accounted for, the system is nearly flat — and the very richest pay the least.
Source: ProPublica, White House OMB, Tax Foundation
In 1965, CEOs made 21× what typical workers earned. Today, that ratio has exploded.
Source: Economic Policy Institute
The Path Forward
This isn't an unsolvable problem. Economists, policy experts, and even some of the world's wealthiest individuals have proposed concrete reforms. Here are the most impactful ones.
A modest 2% annual tax on net worth above $50 million and 3% on net worth above $1 billion. Proposed versions would affect roughly 75,000 households and raise trillions over a decade to fund public investment.
Eliminate the preferential rate for capital gains and dividends. Investment income should be taxed at the same rate as wages. This single reform would dramatically reduce the gap between what workers and investors pay.
Close the loophole that allows billionaires to pass unrealized gains to heirs tax-free. Taxing gains at death or transfer would end the dynastic accumulation of untaxed wealth and generate significant revenue.
An international coordinated effort — similar to the global corporate minimum tax — to prevent the ultra-wealthy from shifting assets offshore. The EU and G20 have already begun exploring frameworks for this approach.
The IRS has been systematically defunded for decades, making it nearly impossible to audit the ultra-wealthy. Restoring funding would recover an estimated $560 billion in unpaid taxes over 10 years — without raising rates at all.
Close loopholes that allow profitable corporations to pay zero federal income tax. Implement a minimum corporate tax rate, limit stock buyback deductions, and end incentives for offshoring profits to tax havens.
Latest
Deep dives into the policies, data, and stories behind America's wealth inequality crisis.
Tax Policy
The ultra-wealthy don't earn income the way most Americans do. They use a perfectly legal three-step strategy to build, access, and pass on wealth — all while paying almost nothing in federal income tax.
February 2026
Data Deep Dive
Since 1989, the top 1% has captured more than two-thirds of all new wealth generated in America. We break down the Federal Reserve's data to show exactly how the pie was divided — and who got crumbs.
February 2026
Global Perspective
Several European countries have tried — and some abandoned — wealth taxes. But the lessons aren't what you'd expect. A closer look reveals why design matters more than ideology.
February 2026