For decades, the wealthiest Americans have seen their fortunes soar while working families struggle to keep up. According to the Federal Reserve’s 2023 data, the top 1% of Americans now hold more than 30% of all household wealth. More than the bottom 90% combined. In 2022, the 400 richest Americans paid an average effective federal income tax rate of just 8.2%, far less than many middle-class families (White House Council of Economic Advisers, 2023).

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This growing inequality isn’t just unfair, it’s unsustainable. Here’s how we can bridge the gap and build an economy that works for everyone:

1. Implement a True Millionaire Minimum Tax

• Billionaire Minimum Income Tax: Enact a minimum 20% tax rate on all income—including capital gains and unrealized gains—for households worth over $100 million. This would ensure that the wealthiest pay at least the same rate as working families.

• Projected Impact: The White House estimates this could raise over $360 billion in new revenue over 10 years, funding priorities like education, healthcare, and infrastructure.

2. Close Loopholes and End Special Breaks

• End the “Carried Interest” Loophole: Tax hedge fund and private equity income as ordinary income, not at preferential capital gains rates.

• Crack Down on Offshore Tax Havens: Increase IRS funding to audit high-net-worth individuals and corporations using offshore accounts to avoid taxes—currently costing the U.S. over $40 billion a year.

• Limit “Step-Up in Basis”: Tax inherited assets on their increased value, preventing the ultra-wealthy from passing on billions tax-free.

3. Restore Fair Corporate Taxes

• Raise the Corporate Tax Rate: Move the federal corporate tax rate from 21% to at least 28%, closer to historic norms, while protecting small businesses.

• Minimum Global Corporate Tax: Support and enforce the 15% global minimum tax deal to prevent multinational corporations from shifting profits overseas.

4. Bridge the Gaps: Invest Where It Matters Most

• Universal Pre-K and Childcare: Use new revenue to fund universal pre-K and affordable childcare, leveling the playing field for all families.

• Affordable Housing: Invest in building and preserving affordable homes, especially in high-cost urban areas.

• Student Debt Relief: Expand Pell Grants and provide targeted student debt relief for low- and middle-income borrowers.

• Healthcare Access: Fund Medicaid expansion and lower prescription drug costs, closing coverage gaps for millions.

5. Promote Bipartisan Tax Fairness and Transparency

• Bipartisan Wealth Tax Commission: Establish a bipartisan commission to study and recommend reforms for taxing extreme wealth, ensuring fair input from both sides of the aisle.

• Transparency in Tax Policy: Require annual public reporting on the effective tax rates paid by the top 1%, increasing accountability and public trust.

6. Empower the IRS to Enforce the Law

• Modernize IRS Technology: Invest in IRS modernization to improve enforcement and customer service, targeting high-income tax evasion—not working families.

• Audit the Top 1%: Prioritize audits for the wealthiest filers, who account for the majority of unpaid taxes.

Why This Matters

• The top 1% captured nearly 20% of all income in 2022, up from 10% in 1980 (Economic Policy Institute).

• If billionaires paid the same effective tax rate as middle-class families, the U.S. could raise hundreds of billions for priorities like schools, roads, and healthcare.

• 61% of Americans—including a majority of both Republicans and Democrats—support higher taxes on the ultra-rich (Pew Research, 2023).

Together, We Can Build an Economy That Works for All

Taxing the ultra-rich isn’t about punishing success—it’s about making sure everyone pays their fair share so we can invest in the future we deserve. By closing loopholes, setting fair rates, and investing in opportunity, we can bridge the wealth gap and strengthen America for generations to come.