August, 24 2021, 08:20am EDT
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American Billionaires Got 62% Richer During Pandemic -- Almost All That Wealth Growth Will Go Income-Tax Free, Showing Need For Biden's Tax Reforms & Investment Plans
New Report Finds More Than One Billion Dollars In DAF Grants Went to Other Commercial DAFs in 2019
WASHINGTON
America's billionaires have grown $1.8 trillion richer during the pandemic, their collective fortune skyrocketing by nearly two-thirds (62%) from just short of $3 trillion at the start of the COVID crisis on March 18, 2020, to $4.8 trillion on Aug. 17 of this year, according to a report from Americans for Tax Fairness (ATF) and the Institute for Policy Studies Program on Inequality (IPS). [A table of the top 15 billionaires is below and the full data set is here.]
America's billionaire bonanza demonstrates the flaws in our current economic and tax systems President Biden and Democrats in Congress are trying to remedy by advancing a $3.5 trillion budget package, which has already passed the U.S. Senate and is being considered in the U.S. House today. If it becomes law through the budget reconciliation process this fall, it will aid communities and working families by making healthcare, eldercare, childcare, housing and education more affordable, investing in clean energy, expanding the Child Tax Credit and providing 12 weeks of paid family and medical leave. It will be paid for by making the wealthy and corporations pay their fair share of taxes, and it will not raise taxes on anyone making under $400,000 a year.
Not only did the wealth of billionaires grow, but so did their numbers: in March of last year, there were 614 Americans with 10-figure bank accounts; this August, there are 708. Their $1.8 trillion of increased wealth alone over 17 months, which will not be taxed unless they sell their assets, would pay for more than half of Biden's 10-year $3.5 trillion investment package.
"The unconscionable growth in billionaire wealth through the misery of the pandemic is the clearest case I can imagine for the progressive tax reform working its way through Congress," said Frank Clemente, ATF's executive director. "We have a historic opportunity this year to begin unrigging the tax code and rebalancing the economy through fairer taxes on the wealthy and corporations, including taxing wealth more like work, raising the corporate tax rate, and curbing corporate offshore tax dodging. We can't let the high-powered lobbyists for wealthy special interests stall this long-overdue reform."
"Billionaires have reaped an unseemly windfall at a time when hundreds of thousands of people have lost their lives and livelihoods." said Chuck Collins, of the Institute for Policy Studies, author of The Wealth Hoarders. "We should use this moment of extreme wealth inequality to fix a tax system tilted in favor of the wealthy and large corporations."
Sources: March 18, 2020 data: Forbes, "Forbes Publishes 34th Annual List Of Global Billionaires" March 18, 2020
August 17, 2021 data: Forbes, "The World's Real-Time Billionaires, Today's Winners and Losers," accessed August 17, 2021
The great good fortune of these billionaires over the past 17 months is all the more appalling when contrasted with the devastating impact of coronavirus on working people. Over 86 million Americans have lost jobs, almost 38 million have been sickened by the virus, and over 625,000 have died from it.
President Biden's investment proposals contained in the Senate-passed budget resolution would significantly improve Americans health by making private insurance in the Affordable Care Act (ACA) exchanges more affordable; closing the Medicaid coverage gap in 12 states that refuse to expand coverage under the ACA; expanding Medicare to cover dental, vision and hearing benefits; increasing long-term care benefits to help people afford home and community-based services; and lowering the cost of prescription drugs by giving Medicare the authority to negotiate lower drug prices with drug corporations.
Biden's proposed investments would reduce health insurance premiums for 9 million people, according to the White House, saving an average 60-year-old making $55,000 a year hundreds of dollars a month on their ACA insurance policy premium, according to the Kaiser Family Foundation. The cost of extending these subsidies is $163 billion over 10 years, per the Treasury Department. That means the $1.8 trillion increase in American billionaire wealth over the last 17 months could pay the entire 10-year cost of making healthcare more affordable for 9 million people more than 10 times over.
While these investments in healthcare would benefit millions of Americans and save money in the long run, the ballooning wealth of billionaires benefits no one but the super-rich. That's because the current tax code is riddled with loopholes and special breaks that allow the super wealthy to avoid paying their fair share of taxes.
Due to one of the code's biggest loopholes, increased wealth enjoyed by billionaires and other members of the richest 1%--for whom such wealth growth is the primary source of income--can go untaxed forever. The virtual tax-free status of billionaire wealth growth was highlighted recently by a report from ProPublica. It estimated that 25 top billionaires paid on average just 3.4% of their wealth-growth in federal income taxes and that several, including Jeff Bezos (worth $188 billion on Aug. 17) and Elon Musk (worth $175 billion), went multiple recent years paying zero federal income tax.
Even when taxed, the top tax rate on wealth-growth income is only about half that of wage income--20% vs. 37%. President Biden would end those special breaks on the wealth-growth income of millionaires and billionaires as part of his tax-reform package. Following are Biden's tax reforms that are expected to be a part of budget reconciliation legislation to be voted on in the fall, many of which will ensure billionaires start paying closer to their fair share of taxes:
- Tax wealth like work. People with more than $1 million a year in income will have to pay a top tax rate on the sale of stock and other assets that is the same as the top rate workers pay on wages. Biden also will close a loophole that often allows the wealthy to avoid paying taxes on investment gains for their entire lives. These reforms will raise $325 billion.
- Restore the top individual tax rate to 39.6% and stop avoidance of taxes by wealthy business owners that are used to fund healthcare. These two reforms will together raise $370 billion.
- Crack down on tax evasion by the wealthy, which will raise $700 billion.
- Raise the corporate tax rate from 21% to 28%, leaving it still far below the 35% rate in 2017. Corporate taxes are largely paid by the owners of corporations, which means the stockholders. Billionaires are among the wealthiest 1% that own over half of all corporate stock. This reform will raise nearly $900 billion.
- Curb offshore corporate tax dodging by eliminating incentives to outsource jobs and shift profits to tax havens. This reform will raise more than $1 trillion.
A more direct way to tax billionaire wealth is to tax the wealth itself instead of just its growth. If the wealth tax proposed by Sen. Elizabeth Warren had been in effect in 2020, the nation's billionaires alone would have paid $114 billion for that year--and would pay an estimated combined total of $1.4 trillion over 10 years.
Poll after poll shows that Americans of all political persuasions and by large majorities believe that the wealthy and big corporations need to start paying their fair share of taxes. A June poll by ALG Research and Hart Research shows 62% of voters support Biden's proposed $4 trillion (at the time) investments in healthcare, childcare, education, clean energy and more--paid for by higher taxes on the rich and corporations.
March 18, 2020 is used as the unofficial beginning of the coronavirus crisis because by then mostfederalandstate economic restrictions responding to the virus were in place. March 18 was also the date that Forbes picked to measure billionaire wealth for the 2020 edition of its annual billionaires' report, which provided a baseline that ATF and HCAN compare periodically with real-time data from the Forbes website. PolitiFact has favorably reviewed this methodology.
Institute for Policy Studies turns Ideas into Action for Peace, Justice and the Environment. We strengthen social movements with independent research, visionary thinking, and links to the grassroots, scholars and elected officials. I.F. Stone once called IPS "the think tank for the rest of us." Since 1963, we have empowered people to build healthy and democratic societies in communities, the US, and the world. Click here to learn more, or read the latest below.
LATEST NEWS
Groups Demand Probe of Israeli Influence Operations Targeting Americans
"The administration must work to defend our democracy fully, and ensure that no foreign state has a green light to inappropriately target American citizens or manipulate our democratic process."
Jul 24, 2024
Over two dozen organizations on Wednesday demanded that the Biden administration launch a multi-agency investigation into recent reporting that "the Israeli government is engaging in illicit social media influence operations targeting U.S. elected officials and U.S. civil society."
Pointing to June reports by The New York Times, Haaretz, and The Guardian, the groups—including the Center for International Policy, CodePink, Democracy for the Arab World Now (DAWN), National Iranian American Council (NIAC), U.S. Campaign for Palestinian Rights (USCPR) Action, and Win Without War—wrote to President Joe Biden and the departments of Homeland Security, Justice, and State.
As Israel began waging war on the Gaza Strip in retaliation for the Hamas-led October 7 attack, the country's Ministry of Diaspora Affairs "allocated about $2 million to the operation and hired Stoic, a political marketing firm in Tel Aviv, to carry it out," the Times reported June 5, citing related documents and unnamed Israeli officials.
"Unfortunately, what has been reported thus far could just be the tip of the iceberg."
Although the Israeli ministry denied involvement in the campaign and Stoic didn't respond to requests for comment, the newspaper noted that "at its peak, it used hundreds of fake accounts that posed as real Americans on X, Facebook, and Instagram to post pro-Israel comments. The accounts focused on U.S. lawmakers, particularly ones who are Black and Democrats."
As The Guardian reported on June 24, "That effort is only one of many such campaigns coordinated by the ministry."
The newspaper detailed "a sprawling relaunch of a controversial Israeli government program initially known as Kela Shlomo, designed to carry out what Israel called 'mass consciousness activities' targeted largely at the U.S. and Europe."
"Concert, now known as Voices of Israel, previouslyworked with groups spearheading a campaign to pass so-called 'anti-BDS' state laws that penalize Americans for engaging in boycotts or other nonviolent protests of Israel," The Guardian explained, referring to the Palestinian-led Boycott, Divestment, and Sanctions movement.
"Its latest incarnation is part of a hardline and sometimes covert operation by the Israeli government to strike back at student protests, human rights organizations, and other voices of dissent," according to the newspaper. "Voices' latestactivities were conducted through nonprofits and other entities that often do not disclose donor information."
The coalition calling on Biden to launch an investigation wrote that "it is incumbent on our government to protect its citizens from efforts by foreign governments to inappropriately interfere in our democratic process by spreading disinformation, targeting U.S. elected officials, and seeking to intimidate members of U.S. civil society."
Highlighting previous action "to punish and deter such nefarious behavior" by Russian firms, the groups argued that "as an administration that has defined itself as defenders of American democracy against threats from both domestic and foreign state actors, the news of the Israeli government's attacks on our democracy must be addressed."
NIAC president Jamal Abdi said, "What this letter asks for is very simple: that President Biden and his administration treat reports of inappropriate Israeli influence operations with the same seriousness that it has allegations of Russian and Iranian influence campaigns."
"Unfortunately, what has been reported thus far could just be the tip of the iceberg," he continued. "The administration must work to defend our democracy fully, and ensure that no foreign state has a green light to inappropriately target American citizens or manipulate our democratic process."
The U.S. government has provided weapons and diplomatic support for Israel's war on Gaza, which has killed at least 39,145 Palestinians and injured another 90,257, according to local officials, and is the subject of an International Court of Justice genocide case.
"The United States has failed to protect Palestinian communities, putting them at risk of harm to continue emboldening Israel," USCPR Action policy manager Mohammed Khader said Wednesday. "As the Israeli government and its foreign agents attempt to undermine our collective efforts on Palestinian rights, we strongly urge for the federal government to impose sanctions to hold Israeli officials and institutions accountable for violating the law."
In addition to the reported covert operations, there have been overt actions by Israel's leaders. As Israeli National Security Minister Itamar Ben-Gvir on Wednesday endorsed former U.S. President Donald Trump for the November election, saying that he believes the Republican "will receive the backing to act against Iran," Israeli Prime Minister Benjamin Netanyahu was invited to address a joint session of Congress, despite protests from American lawmakers.
Trump, Biden, and Vice President Kamala Harris—now the presumed Democratic nominee for the November election—are all set to separately meet with Netanyahu while he is visiting the United States.
"It's time for the Biden administration to end its policy of exceptionalism towards Israel and hold all nations to the same standards," declared DAWN advocacy director Raed Jarrar. "The administration must take decisive action to protect our democracy from all forms of foreign interference."
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730 Million People—Including 20% of Africans—Faced Hunger Last Year
Jul 24, 2024
More than 730 million people around the world faced hunger last year, including 1 in 5 Africans, with over half a billion people set to be chronically malnourished by the decade's end if current trends continue, according to a report published Wednesday by a United Nations agency.
One in 11 people globally went hungry in 2023, the latest U.N. Food and Agriculture Organization (FAO) State of Food Security and Nutrition in the World (SOFI) report revealed.
"The report shows that the world has been set back 15 years, with levels of undernourishment comparable to those in 2008-2009," according to the FAO. "An alarming number of people continue to face food insecurity and malnutrition as global hunger levels have plateaued for three consecutive years."
"Hunger is not something natural. Hunger is something that requires a political decision."
The agency noted significant variation in regional trends as "the percentage of the population facing hunger continues to rise in Africa (20.4%), remains stable in Asia (8.1%)—though still representing a significant challenge as the region is home to more than half of those facing hunger worldwide—and shows progress in Latin America (6.2%)."
"If current trends continue, about 582 million people will be chronically undernourished in 2030, half of them in Africa," FAO said, warning that "the world is falling significantly short of achieving Sustainable Development Goal (SDG) 2, Zero Hunger, by 2030."
FAO Director-General Qu Dongyu said in a statement that "transforming agrifood systems is more critical than ever as we face the urgency of achieving the SDGs within six short years. FAO remains committed to supporting countries in their efforts to eradicate hunger and ensure food security for all."
"We will work together with all partners and with all approaches, including the G20 Global Alliance against Hunger and Poverty, to accelerate the needed change," Qu added. "Together, we must innovate and collaborate to build more efficient, inclusive, resilient, and sustainable agrifood systems that can better withstand future challenges for a better world."
FAO argued that "achieving SDG 2 Zero Hunger requires a multifaceted approach, including transforming and strengthening agrifood systems, addressing inequalities, and ensuring affordable and accessible healthy diets for all."
"It calls for increased and more cost-effective financing, with a clear and standardized definition of financing for food security and nutrition," the agency added.
The new report comes ahead of this November's scheduled G20 Global Alliance against Hunger and Poverty Task Force Ministerial Meeting in Rio de Janeiro, Brazil. On Wednesday, Qu praised Brazilian President Luiz Inácio Lula da Silva—who currently chairs the G20—for centering food security in the bloc's agenda.
In the 2000s, Lula's leftist government implemented plans including Fome Zero (Zero Hunger) and Bolsa Familia (Family Allowance) that significantly reduced malnutrition and poverty in Brazil.
"We need to build on the progress achieved in this region, and share this experience with other regions, especially Africa," Qu said.
Speaking in Rio de Janeiro on Wednesday, Lula said that "hunger is not something natural. Hunger is something that requires a political decision."
Cindy McCain, executive director of the U.N.'s World Food Program (WFP), said Wednesday that "a future free from hunger is possible if we can rally the resources and the political will needed to invest in proven long-term solutions."
"I call on G20 leaders to follow Brazil's example and prioritize ambitious global action on hunger and poverty," she continued. "We have the technologies and know-how to end food insecurity—but we urgently need the funds to invest in them at scale."
"WFP is ready to step up our collaboration with governments and partners to tackle the root causes of hunger, strengthen social safety nets, and support sustainable development so every family can live in dignity," McCain added.
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Harris Campaign Says 'Oil Barons Are Salivating' Over Second Trump Term
"Trump's promises to Big Oil would sacrifice good-paying jobs that are driving an American energy and manufacturing boom," said the campaign.
Jul 24, 2024
U.S. Vice President Kamala Harris on Wednesday seized on Republican presidential nominee Donald Trump's close ties to oil executives, taking aim at the promises Trump has directly made to billionaires who have contributed nearly $26 million to his campaign.
Responding to a report from The Wall Street Journal about the record-breaking donations Trump has received from oil magnates for his 2024 campaign as he's pledged to help them "make an absolute fortune" by continuing to drill for planet-heating fossil fuels, Harris' newly launched presidential campaign put it bluntly.
"Oil barons are salivating because climate denier Donald Trump promised to do their bidding while asking them to bankroll his run for the presidency," said Joseph Costello, a spokesperson for the campaign.
The spokesperson noted that Trump has offered oil billionaires the chance to all but control his energy policy should he win a second term, telling them directly at a dinner in May that he would dismantle the oil and gas regulations introduced by Harris and President Joe Biden if the industry raised $1 billion for his campaign.
The Democratic vice president launched her campaign this week after Biden, who had faced pressure to step aside due to his age and health, endorsed her.
"These Big Oil donations solicited by Trump are being investigated as a 'blatant quid pro quo' by Senate investigators," noted Harris in an email to supporters.
In addition, said Costello, "Trump's promises to Big Oil would sacrifice good-paying jobs that are driving an American energy and manufacturing boom, and instead give billion-dollar handouts to corporations at the expense of working families and a healthy future for our children."
"These Big Oil donations solicited by Trump are being investigated as a 'blatant quid pro quo' by Senate investigators."
As the U.S. Energy and Employment Report found in 2022, under the Biden administration, renewable energy jobs have grown faster than the overall U.S. economy, paying higher than average wages, and have made up for rising unemployment in the fossil fuel industry.
"Under the Biden-Harris administration, America is more energy independent than ever," said Costello. "Vice President Harris cast the tie-breaking vote on the Inflation Reduction Act, creating hundreds of thousands of good paying energy jobs and making the biggest climate investment in world history. But Trump promises to dismantle all this progress and sell out America's future for his own personal gain."
The vice president condemned the "ready-made executive order" oil lobbyists have already begun drafting for Trump in order to secure "tax handouts, increase costs on Americans, and pollute our environment," a day after four national climate groups announced their endorsement of Harris.
The League of Conservation Voters Action Fund, the Natural Resources Defense Council (NRDC) Action Fund, the Sierra Club, and Clean Energy for America Action expressed confidence that if she wins the presidency in November, Harris will "raise climate ambition to make sure we confront the climate crisis in a way that makes the country more inclusive, more economically competitive, and more energy secure."
The Wall Street Journal's reporting confirms that "the oil barons have their candidate" in Trump, said Matt Compton, chief of staff for Climate Power. "Thank God those of us who care about a clean energy future have Kamala Harris."
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