A new study on the tax burden of the ultrarich begins with a startling finding: In 2018, for the first time in history, America’s richest billionaires paid a lower effective tax rate than the working class.
The analysis, which was the subject of a column Monday in the New York Times, is also notable for the detailed breakdown of the tax burden of not just the top 1 percent but also the top 0.1 percent, the top 0.01 percent, and the 400 richest households, Christopher Ingraham writes via the Washington Post and provides a chart below to illustrate that the average effective tax rates of the 400 richest families and the bottom 50 percent of the U.S. households
In 2018, the super-rich paid a lower tax rate than the bottom 50 percent.
What does this mean for our beloved people of America and what can we do about it?
Make your vote count this next election. According to Zachary Warmbrodt and Rebecca Rainey over at POLITICO, a robust political commentary website says, the U.S. economy is humming along, but a growing share of the benefits is going to those already at the top. The disconnect is a significant concern for voters, who appear to be widely supportive of raising taxes on the wealthy, for example.
Democratic presidential candidates are offering a growing list of proposals to tackle the issue, including dramatic steps to redistribute the nation’s wealth.
Some are offering tax hikes on the wealthy while others propose tax cuts for the middle class. Many support raising the minimum wage, but some are going further by proposing universal basic income and a federal jobs guarantee.
Invest in workers and rural America
Sen. Michael Bennet has promised to invest $500 billion on initiatives to create apprenticeships and assistance programs for workers who choose skills training over college.
South Bend Mayor Pete Buttigieg has called for boosting the rural economy through development programs and partnerships and supports the expansion of rural high-speed broadband.
Idea Gaining Traction: Pay Americans a universal basic income because automation took your jobs, not the immigrants
Among 2020 presidential candidates, universal basic income is the most sweeping proposed solution for addressing income inequality.
It would require the government to make regular payments to all U.S. citizens, regardless of whether or not they’re working, no strings attached.
“UBI” is the central policy proposal of Andrew Yang, who argues that it will help Americans at risk of losing their jobs because of technological advances.
Andrew Yang is an American entrepreneur, philanthropist, lawyer, and 2020 Democratic presidential candidate. He is the founder of Venture for America, a nonprofit organization that focuses on creating jobs in struggling American cities.
This is not an endorsement for Andrew Yang, but he does get credit for making such radical propositions gaining popularity and making it mainstream and now being proposed by other candidates.
For a more in-depth view of what each democratic candidate is proposing to check this article by Politico.