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No, Friends on the Left, We Shouldn’t Tax Hardworking Americans Into Poverty
Many of those who would adamantly oppose the creation of a society where the income tax impoverishes struggling workers to enable those with seven-figure incomes to pay low rates are working overtime to maintain that very same situation.
Jul 22, 2026
Imagine this 2029 scenario: Americans making $1,000,001 or more per year have a slightly higher federal income tax rate than they currently do, while Americans who can’t afford to put food on the table—the ones who make less than what it takes to cover basic living expenses—don’t pay federal income taxes at all. Now imagine that President JD Vance proposes to cut the income tax rates of those with incomes over $1 million and to recover the lost revenue by taxing the working poor even further into poverty.
How many Democratic politicians would vote for that? How many left-leaning think tanks would write white papers supporting it? And how many left-leaning activist groups would lobby in support of it? NONE.
Unfortunately, the very tax structure that hypothetical proposal envisions already exists. Yet, amazingly, many of those who would adamantly oppose the creation of a society where the income tax impoverishes struggling workers to enable those with seven-figure incomes to pay low rates are working overtime to maintain that very same situation.
Recognizing that taxing hardworking people into poverty is both morally wrong and economically asinine, earlier this year, Sen. Chris Van Hollen (D-Md.) and Rep. Don Beyer (D-Va.) introduced the Working Americans’ Tax Cut Act (WATCA). Twenty-one senators and 13 representatives have signed on. The AFL-CIO has endorsed WATCA, as have the American Federation of Teachers, Oxfam, Americans for Tax Fairness, Take on Wall Street, and nearly a dozen other tax and justice organizations.
WATCA is based on the simple concept that workers with incomes equal to or less than the basic cost of living should not be required to divert income needed for basic necessities to pay federal income tax. WATCA provides an exemption from federal income tax for income up to the basic cost of living, $46,000 per year for a single American with no children, and recovers the lost tax revenue with a surtax on incomes over $1 million.
Criticism of WATCA has been fast and furious, coming mostly from folks who purport to advocate for average Americans. Their commentary, which can be found in American Prospect, Democracy, The New York Times, and even Rolling Stone, is chock-full of concocted reasons why continuing to oppressively tax struggling Americans is a fine idea. Mostly, their arguments are a repackaged version of billionaire Republican Sen. Rick Scott’s (R-Fla.) idea that he pushed in 2022 that the income tax requires all Americans to have “skin in the game.” Scott’s idea bombed badly—so badly, in fact, that he shelved it after just a few months.
The Working Americans’ Tax Cut Act fixes a fundamental structural flaw in the federal income tax: We’re taxing those with no ability to pay into poverty, while maintaining top rates that are absurdly low.
The words used by WATCA critics differ, although often not by very much, but the concept is the same. A Roosevelt Institute blog post explains how tax policy should “bind us all to one another.” In an impressive mental gymnastics routine, former Larry Summers acolyte Natasha Sarin acknowledges that ordinary Americans are “right to resent a tax system that’s skewed against them,” but that making those at the top pay their fair share would not be enough, so it’s the civic duty of everyone, no matter their level of income, to pay federal income tax. In Democracy, writers from the Tax Law Center at NYU Law, including two Obama and Biden administration alums, somehow manage to start by recognizing that the income tax "embodies the principle that the government should be financed based on ability to pay” yet end by attacking a proposal based on its recognition of the inability of those with income below the basic cost of living—or income below any threshold for that matter—to pay income tax.
You can’t top the tone-deafness of a billionaire Republican senator insisting that all Americans pay income tax to have “skin in the game.” But you know what comes close? A group of ivory-tower policy wonks ensconced in air-conditioned offices and drawing comfortable six-figure salaries insisting that exempting janitors making $40,000 a year from federal income tax would be a tragic policy mistake. No, they don’t use the phrase “skin in the game,” but they may as well.
And let’s be clear, all Americans have a lot of skin in the tax game whether or not they pay federal income tax. In fact, if Social Security and Medicare taxes were labeled to reflect what they actually are—income taxes—all but the lowest income Americans would be considered to be paying federal income tax.
Other attacks on the Working Americans’ Tax Cut Act are equally off base. The second favored theme is to mischaracterize WATCA as a middle-class tax cut. That attack line seizes on the reality that it’s never possible to craft a tax bill that precisely addresses its underlying policy objective. Exempting income up to the basic cost of living from income tax unavoidably confers an incidental benefit on those with incomes at a slightly higher level, a benefit that is rapidly phased out under WATCA.
So, yes, Americans with incomes considered middle class stand to benefit from WATCA. The benefit, however, becomes vanishingly smaller as income increases into middle-class range. But that didn’t stop former Biden National Economic Council member Bharat Ramamurti from referring to WATCA as a “very sweeping middle-class tax cut” which he suggested reflected poor prioritization. Consider how flat Ramamurti’s criticism would fall had he said that a tax cut for underpaid workers struggling to make rent reflected poor prioritization.
The Working Americans’ Tax Cut Act fixes a fundamental structural flaw in the federal income tax: We’re taxing those with no ability to pay into poverty, while maintaining top rates that are absurdly low. We can quibble about the details of fixing that flaw. Maybe the basic cost of living in America is not exactly $46,000. Maybe the cost-of-living exemption should be phased out over a narrower income range.
When our organization, Patriotic Millionaires, worked with congressional offices to develop WATCA, we fully expected commentary along those lines. But ironically enough, there has been remarkably little of it. Instead, we’re hearing that the fundamental structural flaw—and the misery it inflicts on struggling workers—should be left unaddressed. And as a result of their moral ambivalence, we’re left with a Democratic Party that can’t understand why working-class Americans have left them. We can.
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On Tax Day, Socially Conscious Millionaires Say Make Us Pay More!
"We cannot hand over the keys to our democracy to people who are unwilling to address the economic injustices that exist today," said Scott Ellis of the Patriotic Millionaires.
Apr 15, 2026
"Millionaires like me who want a rich, stable, free country demand an economy that ensures it. That begins with commonsense revenue raisers and tax reforms that stop the accumulation of oligarchic concentrations of wealth."
That's what Scott Ellis of the Patriotic Millionaire said Wednesday—Tax Day in the United States—as he gathered with members of various organizations, plus Sens. Chris Van Hollen (D-Md.) and Ed Markey (D-Mass.), as well as Reps. Don Beyer (D-Va,), Chris Deluzio (D-Pa.), and Pramila Jayapal (D-Wash.), for a "tax the rich" rally on Capitol Hill.
"While I've seen examples of the good that wealth can do, I have also seen all the ways it can lead to irreparable harm to our personal, political, moral, and societal well-being," said Ellis. "There is a level of wealth beyond which it threatens the health and even the existence of our democracy and our economy. We cannot hand over the keys to our democracy to people who are unwilling to address the economic injustices that exist today."
We’re taking our message across Washington, DC.Our mobile billboard will be circling Capitol Hill, the National Mall, and beyond—calling out billionaire tax avoidance and demanding higher taxes on the richest Americans.Because working people pay what they owe. It’s time the ultra-rich do too.
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— Patriotic Millionaires (@patrioticmillionaires.org) April 15, 2026 at 11:49 AM
Ellis said that he joined the lawmakers and others gathered "to urge our government leaders to deal with the money problem in our country head-on with solutions like those found in the Patriotic Millionaires' MONEY Agenda platform. Every time inequality reaches extraordinary levels, we create a vulnerability to authoritarianism where money becomes power. If we want to unrig our economy, we need a bold, surprisingly simple economic vision."
So far, two bills tied to the MONEY Agenda have been introduced in Congress: the Equal Tax Act, sponsored by Markey and Rep. Delia Ramirez (D-Ill.), and the Working Americans' Tax Cut Act, spearheaded by Van Hollen and Beyer.
"Teachers, nurses, and millions [of] working people are paying more while getting less because our tax code is rigged to reward wealth over work," Markey said in a statement. "The Equal Tax Act brings fairness to our tax code by requiring millionaires and billionaires to pay taxes on investment income the same way working people pay taxes. On Tax Day, I'm proud to work with Congresswoman Ramirez to fight for legislation that has the wealthy pay their fair share, and rewards work every bit as much as wealth."
Van Hollen, meanwhile, said Wednesday that "my Working Americans' Tax Cut Act creates a fairer system that ensures those who are stretching to make ends meet can keep more of what they earn, while asking the well-off to pitch in more. It's long past time that we rebalanced our tax code to put working people first—and promote greater opportunity and shared prosperity for all."
This country’s tax system is built to favor those at the top and squeeze every last dime out of those at the bottom. It’s time for a change to this rigged system.
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— Congresswoman Pramila Jayapal (@jayapal.house.gov) April 15, 2026 at 6:58 PM
Deluzio used the "Tax the Rich, Make Life Affordable" rally to call out the agenda of elected Republicans—who control the White House and both chambers of Congress—and promote another bill led by Jayapal, Rep. Brendan Boyle (D-Pa.), and Sen. Elizabeth Warren (D-Mass.).
"Our government has a fiscal recklessness problem, and it looks like this: the richest people in the history of Earth facing lower tax rates than Americans who earn a paycheck," said Deluzio. "Yet that is the Republican plan—jack up the national debt and slash healthcare and more for the American people to pay for these huge tax giveaways to corporations and the ultrarich. We need a vastly different approach, like passing the Ultra-Millionaires Tax to get some sanity back into our tax system."
To illustrate just how broken the current system is, EJ Juárez, executive director of State Innovation Exchange, noted that "in 2025 alone, billionaire wealth grew 22%—from $6.7 trillion to $8.2 trillion—while working families see the cost of living go up, and wages too low. That is why SiX is working alongside state legislators across the country to lead the way."
"Across all 50 states, lawmakers are advancing bold solutions to make the ultrawealthy pay what they owe, close corporate loopholes, and build tax systems that actually lower costs and empower working families," Juárez said, nodding to initiatives in places such as California and Washington state. "Together, states are proving a better future is possible."
Beyond Washington, DC, New York City Mayor Zohran Mamdani partnered with Nobel laureate in economics Joseph Stiglitz and Paris School of Economics professor Gabriel Zucman for a Tax Day op-ed calling out the "rigged" US tax code.
"The idea that billionaires should pay higher tax rates than working people is not radical," the trio wrote for The Guardian. "What is radical is allowing a system where extreme wealth exists alongside widespread hardship—and where those billionaires can in effect opt out of contributing to the society that made their success possible."
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Markey Applauded for Proposal to Make Wealthiest Americans Pay Investment Tax
One advocate called the bill an "important step forward in reducing historic, extreme, and democracy-destabilizing levels of economic inequality in America."
Mar 17, 2026
In a move cheered by economic justice advocates, US Sen. Ed Markey on Tuesday introduced the Senate version of the bicameral Equal Tax Act, a bill that would "create equal tax rates for all forms of income for individuals with incomes over $1 million."
"The wealthiest individuals in our society use loopholes and tax dodging schemes to avoid paying their fair share," Markey (D-Mass.) said in an introduction to the bill. "They get away with it because our tax code rewards wealth over work—giving breaks to those that trade stocks over those that punch clocks."
The legislation—which was first introduced in the House of Representatives last year by Rep. Delia Ramirez (D-Ill.)—seeks to make the tax code more fair by making billionaires and multimillionaires pay income tax on passive investments, as if they earned their money through labor, by raising the top marginal rate from the current 20% to 37%.
Right now, billionaires can pay less in taxes on their stock trades than teachers or nurses that educate our children and care for us in emergencies. My Equal Tax Act would stop rewarding wealth more than work by making the ultra-wealthy pay taxes like millions of working people.
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— Senator Ed Markey (@markey.senate.gov) March 17, 2026 at 2:54 PM
Specifically, the Equal Tax Act would:
- Limit the lower preferential tax rate for long-term capital gains and dividends to incomes under $1 million;
- End the stepped-up basis loophole and disrupt the “buy, borrow, die” strategy used by the wealthy to avoid taxation by treating capital gains as realized at the time of gift or death, with exclusion allowances of up to $1 million in gains;
- Enact a lifetime limit of $1 million on the use of like-kind exchanges on real estate gains; and
- Limit the pass-through deduction to incomes under $1 million.
Markey's office said Tuesday that, if passed, the Equal Tax Act would raise an estimated $300 billion in revenue over 10 years.
"Teachers, nurses, and millions of working people are the ones who keep our country running, but our tax code rewards wealth over work,” said Markey. “The Equal Tax Act brings fairness to our tax code by requiring millionaires and billionaires to pay taxes on investment income the same way working people pay taxes on income from their labor."
Ramirez noted how plutocrats like President Donald Trump and tech titans Elon Musk, Jeff Bezos, and Mark Zuckerberg "have extorted tax benefits from the American people."
"For far too long, they have exploited an unfair tax system that makes the rich richer at the expense of working families," the congresswoman added. "It is time we ensure that the ultrawealthy pay their fair share. I am excited to work with Sen. Markey in the bicameral introduction of the Equal Tax Act to build a fairer tax system that ensures working families have everything they need to thrive."
Morris Pearl, chair of the fair taxation advocacy group Patriotic Millionaires, said in a statement, “For decades, we have been playing a game of economic Jenga where we pull from the bottom and the middle, load it all on top, and then wonder why the whole thing is about to fall down."
"We end up with an unfair system that allows for oligarchic wealth to concentrate in the hands of a few individuals," Pearl continued. "That’s because right now in America, our tax code makes people who have jobs and work for a living pay far higher tax rates than people who make money from investments or inheritances."
"The money that investors like me make passively from our wealth should not be taxed any less than the money millions of Americans make through their sweat," he asserted. "By closing major loopholes, the Equal Tax Act would ensure that the ultrarich pay income taxes just like all Americans who work for a living and have taxes deducted from their paychecks every week."
"The Patriotic Millionaires are thrilled to see Sen. Markey take this important step forward in reducing historic, extreme, and democracy-destabilizing levels of economic inequality in America," Pearl added.
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77% of Global Millionaires Agree: Extreme Wealth Allows Uber-Rich to Buy Political Influence
Actor and activist Mark Ruffalo said that “extreme wealth inequality enabled” President Donald Trump, “and is the root cause of the trend towards authoritarianism we’re witnessing in the US and around the world.”
Jan 20, 2026
For years, progressives such as Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez have made the case that the world's richest people wield a dangerous level of influence over US politics—and it turns out that many millionaires agree.
New polling conducted on behalf of Patriotic Millionaires surveyed 3,900 millionaires across the world and found that 77% of them believe that extremely wealthy people are able to buy political influence, with 62% believing that extreme wealth is a threat to democracy itself.
Furthermore, 82% of millionaires surveyed endorsed limits from how much politicians and political parties can receive from individual contributors, while 65% supported higher taxes on the highest earners to invest in public services.
President Donald Trump's second term also received low marks from the millionaires surveyed, with 59% saying he has had a negative impact on global economic stability, and 58% saying that he's hurt US consumers' ability to afford basic necessities.
The poll's release coincided with the sending of an open letter signed by hundreds of millionaires across 24 countries asking world leaders gathered in Davos, Switzerland for the World Economic Forum to increase taxes on the ultrawealthy in the name of rescuing global democracy. Trump is set to speak at the event on Wednesday.
"A handful of global oligarchs with extreme wealth have bought up our democracies; taken over our governments; gagged the freedom of our media; placed a stranglehold on technology and innovation; deepened poverty and social exclusion; and accelerated the breakdown of our planet," states the letter. "What we treasure, rich and poor alike, is being eaten away by those intent on growing the gulf between their vast power and everyone else."
Actor Mark Ruffalo, a signatory of the letter, argued that the extreme dangers posted by Trump and his political movement were the direct result of global wealth inequality that has gone unaddressed for decades.
"Donald Trump and the unique threat that he poses to American democracy did not come about overnight," Ruffalo explained. "Extreme wealth inequality enabled his every step, and is the root cause of the trend towards authoritarianism we’re witnessing in the US and around the world."
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'Inequality by Design': EU Billionaire Wealth Soared by Over €400 Billion in 6 Months
“Europe is minting billionaires at a record rate while millions of Europeans are struggling to make ends meet," said one tax expert.
Oct 09, 2025
A worsening inequality crisis in the European Union—where the richest people pay proportionately less tax than ordinary citizens even as billionaire wealth is skyrocketing—is driving increasingly popular demand for a wealth tax, according to a report published Thursday.
The Oxfam briefing paper, A European Agenda to Tax the Superrichch, notes that "the richest 1% in the EU own nearly a quarter of all wealth while half the population shares just 3%."
The report underscores that the combined wealth of EU billionaires soared by over €400 billion ($462.2 billion) in just six months this year—the equivalent of over €2 billion ($2.3 billion) a day.
"In 2025, the EU counted nearly 500 billionaires, 39 more than in 2024," Oxfam said. "In the last year alone, a new billionaire was created, on average, every nine days in the EU. Altogether, the richest 3,600 Europeans now hold as much wealth as the poorest 181 million—equivalent to the populations of Germany, Italy, and Spain combined."
“Europe is minting billionaires at a record rate while millions of Europeans are struggling to make ends meet,” Oxfam EU tax expert Chiara Putaturo said in a statement Thursday. “This inequality is not by accident, it is by design.”
📢 EU Billionaires’ wealth surges by over €400bn in first half of 2025.That’s over €2bn a day.🔗https://www.oxfam.org/en/press-releases/eu-billionaires-wealth-surges-over-eu400-billion-first-half-2025#TaxTheRich
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— Oxfam EU (@oxfameu.bsky.social) October 8, 2025 at 10:27 PM
As the report notes:
Over recent decades, EU countries have slashed taxes for the richest people and corporations, while leaving ordinary people to pay the price. Today, over 80% of tax revenue in the EU comes from taxes that fall primarily on ordinary citizens, while the wealthiest can exploit loopholes, tax havens, and special regimes to pay lower effective tax rates than nurses and teachers. In Belgium, for example, members of the richest 1% contribute just 23% tax of their incomes, which is half of what the average person contributes.
"Decades of tax cuts for the wealthy and corporations resulted in the superrich paying proportionally less taxes than ordinary citizens, eroding fairness, democracy, and social cohesion," the report states. "The EU lacks harmonized policies to curb extreme wealth concentration and tax avoidance of the wealthiest."
"Oxfam calls for bold reforms, such as an EU-wide or national tax on the superrich and transparency mechanisms like an EU assets registry, to fund social needs, climate action, and development," the publication adds. "Taxing the superrich is widely supported, is feasible, and is urgent."
The report contends that an EU-wide wealth tax of up to 5% on millionaires and billionaires could potentially bring in €286.5 billion ($331.3 billion) in yearly revenue, "enough to cover the annual needs of the new EU long-term budget proposal," while ending "harmful and wasteful" tax policies favoring the superrich would recover nearly €4 billion ($4.6 billion) annually.
While wealth taxes have been proposed in a number of European countries, including France—which according to The Economist has more billionaires than any other country in the EU—only Norway, Spain, and Switzerland have enacted a net wealth tax, according to Tax Foundation Europe.
After France's political crisis deepened this week with the resignation of another prime minister, French economist Gabriel Zucman—known globally for advocating for a wealth tax of at least 2%—called out his country's last three PMs for not taking the proposal seriously. He noted that “there is a very strong demand among the population for greater tax fairness and better taxation of the ultrarich.”
France has more billionaires than any country in the EU. A new tax on their income is a popular idea. But doing so might not bring in all that much cash econ.st/4nkboVU
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— The Economist (@economist.com) September 30, 2025 at 8:00 AM
The Equals podcast and Belgian-Dutch philosopher Ingrid Robeyns on Thursday explored the benefits of a wealth cap.
"The idea of a poverty line is pretty well understood. No one should have so little that they can’t afford a roof over their head or go to bed hungry at night," Equals Bulletin said. "But billions of people around the world can’t afford these basics, despite the wealth increase of billionaires over the last decade being enough to end poverty 22 times over."
Embracing the concept of a wealth cap, the publication explained: "It’s about ensuring the needs of people and planet are met so everyone can flourish. You don’t have to be a communist to agree with a wealth cap, nor does it necessarily mean rejecting a market-based economy."
New EQUALS episode is out.We ask, How Much Wealth is Too Much?Philosopher @ingridrobeyns.bsky.social explains why we need a wealth limit & how billionaires are quietly breaking democracy.🎧 Listen here 👉 www.equals.ink/p/how-much-w...
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— EQUALS (@equalshope.bsky.social) October 7, 2025 at 7:42 AM
How much wealth is too much? Equals cited a New Economics Foundation (NEF)/Patriotic Millionaires survey published earlier this year in which one-third of millionaires said that the "extreme wealth line"—the point beyond which their fortune is considered harmful to society and the environment—should be set at $10 million.
"Society needs novel approaches to bring this complex topic to life," NEF's Fernanda Balata and Hollie Wright said at the time, "including narratives and practical tools more apt to address the vast cultural, moral, economic, and social barriers to tackling extreme wealth."
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Musk's SpaceX Likely Paid 'Little to No Taxes' Despite Lucrative Government Contracts
Patriotic Millionaires, an organization that lobbies for higher taxes on the wealthy, said the report was a "reminder of how unfair our tax code is."
Aug 15, 2025
Although Elon Musk's space exploration company SpaceX has benefited over the years from several lucrative government contracts, it has largely avoided paying any taxes to the federal government.
The New York Times reports that SpaceX has "most likely paid little to no federal income taxes since its founding in 2002 and has privately told investors that it may never have to pay any."
The reason that the company has gotten away with paying practically no taxes, writes the Times, is that it takes advantage of a tax benefit commonly referred to as a net operating loss carryforward "that allows it to use the more than $5 billion in losses it racked up by late 2021 to offset paying future taxable income." This tax benefit was initially limited in its scope, but congressional Republicans and US President Donald Trump in 2017 scrapped its expiration date for all companies, thus letting SpaceX and other firms take advantage of it indefinitely.
Danielle Brian, the executive director of the Project on Government Oversight, told the Times that this tax benefit was intended to help struggling firms weather tough times to stay in business, but that it was "clearly not intended for a company doing so well" as SpaceX.
In its review of SpaceX's internal documents, the Times found that SpaceX had paid a small amount of taxes over the years, although none of them were to the federal government.
"In one document, the company said it expected to pay $483,000 in income tax to foreign governments and $78,000 in state income tax in 2021," writes the paper. "Separately, it reported paying $6,000 for income taxes in 2020 and 2021, but did not disclose if the payments were for federal, state or local governments."
What makes SpaceX's tax avoidance particularly noteworthy is its own dependence on the federal government for business. In 2020, the Times found, federal contracts accounted for nearly 84% of the firm's total revenues.
Patriotic Millionaires, a group of wealthy Americans who advocate for higher taxes on the rich, wrote on X that SpaceX's almost total lack of tax payments to the federal government was yet another piece of evidence about the tax system being rigged for the big corporations.
"SpaceX has secured billions in government contracts over the years," they wrote. "In return, it has likely paid... $0 in federal income taxes—and may never have to. Just in case you needed a pre-weekend reminder of how unfair our tax code is!"
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'We Have Been Working Against That': Trump and Johnson Dump Cold Water on Millionaire Tax Hike
"We fully expect Republicans to once again sacrifice everything and everyone at the altar of tax cuts for their ultra-wealthy benefactors at the expense of working people," said one progressive campaigner.
Apr 25, 2025
U.S. President Donald Trump indicated in an interview published Friday that he's unlikely to push congressional Republicans to include a tax hike on millionaires in their sprawling reconciliation bill, saying he doesn't "want it to be used against me politically."
Trump's comments to TIME magazine came a day after he told reporters in the Oval Office that raising the statutory income tax rate on people who earn more than $1 million a year would be "very disruptive, because a lot of the millionaires would leave the country." (The notion of millionaire tax flight, often cited by Republicans as a reason not to raise taxes on the rich, has been repeatedly debunked.)
In recent weeks, pro-Trump figures such as former White House chief strategist Steve Bannon and a small number of Republicans in Congress have floated the idea of slightly raising income taxes for millionaires, suggesting the move would help counter progressive attacks on Trump and his billionaire-stocked Cabinet as a manifestation of the United States' descent into oligarchy.
"This guts the AOC-Bernie 'oligarchy tour,'" Bannon told The Washington Post earlier this week. "Politically, it's game, set, match—it's a no-brainer. This would destroy the Democrats."
But Trump told TIME that he's concerned about political backlash stemming from any tax increase on millionaires, even as he acknowledged it "doesn't make that much of a difference" to the rich.
"I would be honored to pay more," said Trump, whose organization was convicted in 2022 of a long-running tax fraud scheme. "But I don't want to be in a position where we lose an election because I was generous."
House Speaker Mike Johnson (R-La.) told Fox News earlier this week that he "would not expect" a millionaire tax hike to wind up in the GOP reconciliation package, which is expected to extend the 2017 Trump-GOP tax breaks and enact an additional $1.5 trillion in tax cuts—paid for in part by slashing Medicaid, federal nutrition assistance, and other programs.
"We have been working against that idea," Johnson added. "I'm not in favor of raising the tax rates because our party is the group that stands against that traditionally."
"The real thing that's going on here is that Republicans are feeling the pressure of our messaging. They're cutting basic service programs like Medicaid and SNAP to give tax cuts to billionaires."
Proposals floated by Republican lawmakers and discussed in Trump's inner circle in recent days include allowing the top marginal tax rate to revert to 39.6%—the level prior to enactment of the 2017 tax cuts—next year and establishing a new top marginal rate of 40%, which would do nothing to tax mega-billionaires like Elon Musk, whose wealth is mostly stock that's only taxed when sold.
The millionaire tax hike proposals have drawn vocal opposition from big business, with the U.S. Chamber of Commerce—the nation's largest corporate lobbying group—joining a recent letter rejecting any proposed tax increase on millionaires.
David Kass, executive director of Americans for Tax Fairness, told Common Dreams in an interview Friday that "even if they did put something like this in" the final reconciliation package, "it's really important to remember that the bill would still be overwhelmingly skewed to the rich."
"The real thing that's going on here is that Republicans are feeling the pressure of our messaging," said Kass. "They're cutting basic service programs like Medicaid and SNAP to give tax cuts to billionaires."
Morris Pearl, chair of the Patriotic Millionaires, told Common Dreams in an emailed statement that "while we are supportive of efforts to raise the income tax rate on millionaires, if past behavior is the best predictor of future behavior, we'll believe Republicans are serious about protecting working people from an unfair tax burden when we see it."
"As they prepare their bill for an early summer passage," said Pearl, "we fully expect Republicans to once again sacrifice everything and everyone at the altar of tax cuts for their ultra-wealthy benefactors at the expense of working people."
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Want Equitable Tax Policy? Listen to the Patriotic Millionaires, Not Donald Trump
The new Patriotic Millionaires tax plan isn’t going to become the law of the land anytime soon, but it could help refocus America’s political debate onto the dynamics that are threatening to destroy our democracy.
Apr 14, 2025
Republican leaders in Congress have been working feverishly over recent days to renew the rich people-friendly 2017 Trump tax cuts set to expire at this year’s end. Both the House and Senate have now passed bills that do that renewing—and also add in some assorted new goodies.
All that remains before this latest giveaway to grand fortune becomes law: a bit of dickering between House and Senate GOP leaders over the tax cut’s particulars and then President Donald Trump’s John Henry on whatever legislation that dickering ends up producing.
Trump can barely wait for the signing ceremony. But he’s also pushing for much more than an extension—and expansion—of those 2017 tax cuts. His ultimate goal: erasing taxes on income from the entire federal tax code.
Some 48% of Americans say they worry “a great deal” about how “income and wealth are distributed,” a remarkably high share of the public given how seldom our media and politics directly address that distribution.
“You know,” Trump told a press conference this past Tuesday, “our country was the strongest, believe it or not, from 1870 to 1913. You know why? It was all tariff based. We had no income tax.”
Over those years, federal revenue most certainly did come mostly from tariffs. And those tariffs did work wonders—for the nation’s rich. Our original Gilded Age wealthy frolicked in an America where the rich and their corporations could essentially operate however they pleased. They could pay their workers precious little and cavalierly short-change consumers at every opportunity.
In that same America, the federal government did precious little to protect average Americans from greed and grasping—and even less to make their lives more economically secure.
Changing that profoundly unequal state of affairs took decades of organizing on the part of workers, farmers, and middle-class reformers. By 1913, that organizing had paid off. The ratification of the 16th Amendment to the U.S. Constitution that year gave Congress the authority to levy income taxes. By the end of World War I, America’s wealthy faced a 79% levy on their top tax-bracket income.
But the nation’s rich would come roaring back in the Roaring Twenties. America’s wealthiest flexed their political muscles enough to get that top tax rate down to 25%. They would go on to party hardy throughout that decade, right up until the 1929 stock market crash. The 1930 Smoot-Hawley Tariff Act that Trump so likes to trumpet helped turn that crash into the Great Depression.
Amid that unprecedented downturn, America’s grassroots would rise up and break the plutocratic lockgrip on public policy. Working people would gain collective bargaining rights. Seniors would gain Social Security. The super rich would gasp as federal tax rates on their top-bracket income jumped to over 90%.
The end result? By the mid-1950s, over half America’s households had money left over after meeting their most basic living expenses. No modern nation had ever before reached that status.
That share-the-wealth momentum, unfortunately, would soon begin ebbing. Since the late 1970s, as the Economic Policy Institute has detailed, only Americans of substantial means have been sharing in Corporate America’s economic bounty.
How can we change this top-heavy state of affairs? Last week, at an unusual conference in Washington, D.C., activists highlighted a detailed agenda for making America start working for all Americans, not just the wealthiest among us. What made this confab so unusual? The people who put it together all just happen to rate as wealthy themselves.
The sponsor of this How To Beat the Broligarchs gathering: Patriotic Millionaires, the national group that’s been organizing Americans of means to “tax the rich, pay the people, and spread the power” since 2010. This past week’s broligarch-bashing conference gave these millionaires—and activists and scholars equally interested in creating a more equal United States—a vibrant forum for sharing information, insights, and, most importantly, an ambitious gameplan for ending rule by the rich.
“Our economy should be judged on how well it takes care of working people,” as Patriotic Millionaires founder Erica Payne notes, “not on how many billionaires it mints in a calendar day.”
To take better care of working people, the new Patriotic Millionaires economic plan, entitled America 250: The Money Agenda, proposes a “Cost of Living Tax Cut Act” that would exempt all annual income up to $41,600—the current cost of living for the typical American adult—from federal income tax.
Another Patriotic Millionaires-proposed piece of legislation, the “Cost of Living Wage Act,” would nearly triple the federal minimum wage, from $7.25 an hour to $20, a rate that would adjust every year to rising prices.
To help trim our richest down to something resembling democratic size—and offset the cost of exempting low incomes from income tax—the Patriotic Millionaires plan would also start subjecting millionaires to a surtax on their taxes due.
Another part of the plan would tax the capital gains millionaires pocket—their profits from buying and selling stocks and other assets—at the same rate as ordinary earned income. Still another plan section would essentially prevent the mostly tax-free intergenerational transfer of assets from the super rich to their super fortunate offspring.
What makes that prevention so important? Under current law, point out Patriotic Millionaires analyst Bob Lord and law professors Brian Galle and David Gamage in a new research paper, between 80 and 90% of the wealth “that rich families have set aside for their heirs will likely never be subject” to the over-a-century-old federal estate tax.
The first phase of the “Anti-Oligarchy Act” the Patriotic Millionaires plan is proposing would have all inheritances over $1 million taxed as ordinary income. This phase would also “impose a progressive tax on large sums of trust-held wealth to limit the accumulation of dynastic wealth.”
The second phase would seek to impose “a tax on the wealth of the richest Americans sufficient to reduce their wealth to a level in harmony with the ideals of democracy, amending the United States Constitution if necessary.”
The pollsters at Gallup have just asked Americans if they worry “a great deal”—or much less—about 16 different current-day concerns. Some 48% of Americans say they worry “a great deal” about how “income and wealth are distributed,” a remarkably high share of the public given how seldom our media and politics directly address that distribution.
The new Patriotic Millionaires tax plan obviously isn’t going to become the law of the land anytime soon. But the plan could help refocus America’s political debate onto the dynamics that are threatening to destroy our democracy. Let’s get that debate going. Soon.
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Patriotic Millionaires Unveil Platform to 'Beat the Broligarchs'
"Our economy should be judged on how well it takes care of working people, not on how many billionaires it mints in a calendar day," said the founder of the economic justice group.
Apr 07, 2025
With economists warning that U.S. President Donald Trump's trade war will raise the cost of living for millions of American families and could soon fuel a recession, the economic justice group Patriotic Millionaires on Monday unveiled a "bold, surprisingly simple economic framework" to stop the oligarchy from amassing more power at the expense of working people and "permanently stabilize the economic lives of working people."
Four pieces of legislation would form the basis of America 250: The Money Agenda, which Patriotic Millionaires proposed at an "expert town hall" titled "How to Beat the Broligarchs."
The agenda would include:
- The Cost of Living Tax Cut Act, providing an exemption on federal taxes equal to the median cost of living for a single adult with no children—$41,600 per year—with the responsibility for those revenues shifted from the working class to the millionaire class with a millionaire surtax;
- The Cost of Living Wage Act, raising the minimum wage to $21 per hour to match the cost of living for a single adult with no kids;
- The Equal Tax Act, equalizing tax rates for capital gains and income over $1 million and closing the "stepped-up basis loophole" which minimizes "the tax obligations of the uberwealthy"; and
- The Anti-Oligarch Act, implementing significant taxes on the intergenerational transfer of wealth, on large sums of trust-held wealth, and on the true economic income of America's ultrarich to prevent further wealth concentration at the top, and taxing the wealth of the ultrarich sufficiently—including through an amendment to the U.S. Constitution.
The latter proposal, said Patriotic Millionaires, "is a long overdue response to Supreme Court Justice Louis Brandeis' warning from a century ago: 'We can have democracy in this country or we can have great wealth concentrated into the hands of a few, but we can't have both.'"
"The extreme concentration of wealth has always, without fail, translated into an extreme concentration of political power. The stakes for the nation couldn't be more clear," said the group. "We must act immediately."
At the How to Beat the Broligarchs event on Monday, the group assembled experts including economist Stephanie Kelton, Helaine Olen of the American Economic Liberties Project, and historian Rutger Bregman to discuss how unchecked wealth in the U.S. has captured the political and judicial systems—with "broligarchs" like tech CEO Elon Musk and others "working to pull the strings of the government towards their interests at the expense of the American people."
"America's slide into oligarchy necessitates bold actions in order to reclaim democratic capitalism and forge a prosperous, equitable, and just future," said Erica Payne, founder and president of Patriotic Millionaires. "America 250: The Money Agenda is the only plan that will get us there. It will change not just our own lives, but the future and direction of our country. Our economy should be judged on how well it takes care of working people, not on how many billionaires it mints in a calendar day. By that measure, America is flunking its economics class. The only way to get better marks—and stop our country's slide into oligarchy—is by fixing our tax code."
Erica Payne: "This economy should be judged on how well it takes care of people, not on how many billionaires it prints in a calendar day. Every great country starts with a great economy." pic.twitter.com/DXofvmwYNO
— Aaron Rupar (@atrupar) April 7, 2025
Morris Pearl, board chair of the group, said that if Congress enacts the legislative agenda proposed on Monday, "we will build a community dedicated to the common purpose of improving the lives of all working people in our country—not just the ultrawealthy."
"America 250 will bring to account the politicians and their enablers who are sustaining our backwards status quo and demand better leaders to put us on a better, more sustainable path," said Pearl. "The time for economic exploitation is over."
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Michigan Governor Accused of 'Wage Theft' for Signing Tipped Minimum Wage Legislation
"Once again, Democrats have thrown working people under the bus, this time in Michigan," said one critic.
Feb 21, 2025
Economic justice advocates excoriated Michigan Gov. Gretchen Whitmer on Friday after the Democrat signed legislation that, while speeding up the state's increase to a $15 hour minimum wage, could leave tipped workers earning less than they would under a system imposed last year by the state Supreme Court, according to critics.
Whitmer signed a pair of bills changing the state's minimum wage, tip credit, and paid sick leave law following an eleventh-hour legislative compromise, explaining in a statement that "Michigan workers deserve fair wages and benefits so they can pay the bills and take care of their family, and small businesses need our support to keep creating good jobs."
Abigail Disney, a member of the group Patriotic Millionaires, said in a statement, "Once again, Democrats have thrown working people under the bus, this time in Michigan under the stewardship of Gov. Gretchen Whitmer."
"In its quest to rebrand itself and win back the working-class vote, Democrats needed to present a unified front in this pivotal moment in Michigan—and anything less than that, which this is, should be taken as an abysmal failure," Disney continued.
"This is the unfortunate but predictable outcome of a party that has proven itself over the years to be for sale to the highest bidder. Voters will definitely notice, and Democrats shouldn't expect them to forgive and forget at the polls in 2026 and beyond," she added.
In 2018, advocates drafted ballot initiatives aimed at expanding paid sick leave and raising the state minimum wage, which was then $9.25 an hour. But Republican state lawmakers moved to block the measures by maliciously adopting and then favorably amending them. Last July, Michigan's Supreme Court ruled this "adopt and amend" tactic unconstitutional and ordered the initial sick leave and minimum wage proposals to take affect at midnight on Friday.
By signing one of the bills, S.B. 8, Whitmer leaves in place a system in which tipped workers' minimum wage will be $4.74 instead of $6 under the court-ordered plan. Customer tips are counted upon to close the gap between the tipped and regular minimum wage of $12.48 per hour. Employers must pay the difference if workers don't reach that amount with tips.
While the Michigan Restaurant and Lodging Association welcomed Whitmer's move, John Driscoll, author of Pay the People! Why Fair Pay Is Good for Business and Great for America, said in a statement that "restaurant lobbyists in Michigan may say that they 'won' this battle in preserving the subminimum wage for tipped workers, but in the end, their efforts will only hurt themselves and their state's economy."
"I know from my own experience as the CEO and chair of businesses that pay people stable and fair wages that doing so is best for workers, businesses, and the broader economy," he continued. "When workers have economic security, they are more loyal and productive, which will help businesses and stimulate growth."
"Contrary to what restaurant associations may claim, everybody lost today when Gov. Whitmer signed S.B. 8 into law," Driscoll added. "Tipped workers lost. Businesses lost. And the Democrats lost too when they sacrificed the most vulnerable workers in Michigan to lobbyists."
The advocacy group One Fair Wage accused the governor of "stripping millions of dollars" from Michigan workers' paychecks.
"Michigan's highest court ruled that these wage increases should take effect," One Fair Wage president Saru Jayaraman said in a statement. "Michigan workers have already earned this raise, and taking it away is not a compromise—it is wage theft. We are mobilizing to ensure voters—not politicians—have the final say on whether these protections remain in place."
One Fair Wage said: "If enough valid signatures are collected, S.B. 8 will be blocked from implementation, and the 2024 Michigan Supreme Court decision requiring that all workers receive a raise to $15 an hour with tips on top will go into effect. The referendum will thus ensure that Michigan voters—not politicians—decide whether these wage increases stand."
One Fair Wage must gather 223,099 valid signatures to suspend S.B. 8 and leave the matter up to Michigan voters.
Meanwhile, the federal tipped minimum wage remains stuck at $2.13 an hour, where it's been since 1991. The federal minimum wage has been $7.25 since 2009.
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