How Wealth Inequality Spiraled Out of Control - Robert Reich

[Celerity]

00:00 The Second Gilded Age
01:17 The Basics
03:00 Why the Wealth Gap is Exploding
05:21 Why Wealth Concentration is a Problem
07:10 The First Gilded Age
10:20 How to Reduce the Wealth Gap


What Democrats must now do

https://robertreich.substack.com/p/biggest-lesson

Today, the House is expected to move forward with a vote on both the Build Back Better social and economic package and the bipartisan infrastructure bill. The big remaining question is how to pay for it. The answer should be by taxing the wealthiest Americans and big corporations. House Democrats must hold the line on this. The biggest lesson from Tuesday’s election results is that too many people in America’s vast working middle class don’t believe Democrats are on their side. The best way of persuading them otherwise is to enact the social and economic package and infrastructure bill — and pay for it by taxing ultra-wealthy Americans who have never been wealthier yet don’t pay their fair share.

How, specifically? Five ways:

1. The so-called “billionaire’s tax” would require Americans with $1-billion-plus fortunes to pay capital gains tax on assets as their value rose, not just when those assets were sold. It would affect only about 700 families.

2. The proposal to tax capital gains over $1 million at the time of a person’s death would require eliminating the notorious “stepped-up basis” loophole that allows the wealthy to accumulate assets over the years without paying tax on their increased worth, and then pass them along to heirs who never have to pay taxes on it, either.

3. The "carried interest” loophole allows private equity executives and others who manage investments to treat their earnings as low-tax capital gains rather than as higher-taxed income. It’s a pure scam lacking any economic justification. The hedge-fund, private-equity, and other fund managers who get this $18 billion benefit don’t risk their own money. They invest other peoples’ money. These fund managers are some of the richest people in America. (Forbes lists 68 billionaires who have gotten most of their wealth from managing hedge and private-equity funds.)

snip

[Sherman A1]

1. Two words would explain much of the reason

Ronald Reagan.

[multigraincracker]

2. We do have the best form of Government

that money can buy.

[Layzeebeaver]

3. I would say...

...the worst form of government that money can buy.