this post was submitted on 06 Jan 2024
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A new report from Americans for Tax Fairness found that America’s richest families accumulated $8.5 trillion in untaxed capital gains in 2022

America’s wealthiest families held an astounding $8.5 trillion in untaxed profits in 2022. According to a report from the nonprofit Americans for Tax Fairness, which analyzed Federal Reserve data, “one in every six dollars (18 percent of the nation’s unrealized gains is held by these roughly 64,000 ultra-wealthy households, who make up less than 0.05 percent of the population.” The report comes as the Supreme Court gears up to decide a case that could preemptively block any efforts to tax the wealth of billionaires.

The data looks at “quiet” income generated by “centi-millionaires,” Americans holding at least $100 million in wealth, and billionaires through unrealized capital gains. Those gains accumulate, untaxed, as assets and investments like stocks, real estate, bonds, and other investments increase in value. If those assets are not sold — or “realized” — they are not taxed, yet America’s wealthiest families can leverage that on-paper value increase to secure favorable loans with low-interest rates in lieu of using taxable income to finance their lifestyle.

“Of the $139 trillion in America’s national wealth, almost three-quarters (73 percent) is held by the richest 10 percent of households, over one-third (35 percent) by the richest 1 percent, and an astounding 11 percent — $15.2 trillion — is held by the handful of fortunate households that make up the billionaire and centi-millionaire class,” the report says. “The wealthiest 1 percent of households hold 44 percent of national unrealized gains ($21.2 trillion), with billionaires and centi-millionaires alone controlling 18 percent ($8.5 trillion).”

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[–] Norgur@kbin.social 13 points 10 months ago (2 children)

The feeling I get is more that the famous checks and balances ceased to work and the supreme court is the branch getting the most power from this breakdown.

[–] Cornelius_Wangenheim@lemmy.world 5 points 10 months ago* (last edited 10 months ago)

They wouldn't have so much power if the legislature was functional. The majority of their ruling could be undone by Congress passing a law saying "No, that is not what we meant. Ignore this stupid ruling that willfully misinterpreted our law."

Most of our government dysfunction comes back to Republicans refusing to compromise and weaponizing the filibuster to obstruct and prevent Congress from doing anything.