The American Experiment Has Been Infected by Oligarchs
5 hours ago
- #wealth inequality
- #oligarchy
- #tax policy
- The article warns of an 'oligarchy virus' in the U.S. tax system, where extreme wealth concentration distorts democracy and culture.
- Wealth inequality has surged, with the top 0.00001% (19 billionaires) holding over $3 trillion, more than 12% of national income, and billionaire political spending skyrocketing.
- The tax system's flaw lies in not taxing unrealized gains (Haig-Simons income) and taxing investment gains at lower rates than wages, favoring the wealthy.
- Historical progressive taxation and strong labor policies once prevented oligarchy, but since the 1980s, wage stagnation, deregulation, and tax cuts have enabled wealth reconcentration.
- Proposed solutions include raising the minimum wage, enforcing antitrust laws, taxing investment gains as ordinary income, and implementing a wealth tax via the Oligarch Act of 2025.
- The oligarchy cycle (wealth begetting power) makes reform challenging, but confronting it is urgent to restore democratic balance.