Tax the Rich and Save the World

This article is part of the series, “Left Hook Economics: The Dollars & Sense Policy Forum.”

PERI’s Nancy Folbre points out that the growing visibility of wealth concentration is rousing a coalition of economists, lawmakers, labor unions, and the worried rich who are pushing back against four decades of trickle-down orthodoxy. Their message is gaining traction: the ultra-wealthy are not paying their fair share, and working-class voters are getting shafted.

” The very rich let their assets grow, untouched and tax free (capital gains aren’t taxed unless and until assets are sold for a profit). When the very rich need cash, they borrow against those assets at interest rates far below the income tax rate on wages—allowing wealth to compound while generating no taxable income at all.”