Posted by Bob Lord
The fourth and last piece in my four part series on wealth that produces income not subject to current tax, America's Ever-Expanding Tax-Exempt Pool, is up at inequality.org. When you count it all up, our giant tax-exempt pool is well into the tens of trillions, and growing. I of course would love it if you read the entire piece, but for those who want to skip the details, here's the conclusion:
And how large a share of this $60 trillion in financial wealth sits in
America’s giant tax-exempt pool? About $34 trillion. Over half the nation’s
financial wealth is generating income not subject to current taxation.
How much is our giant tax-exempt pool costing us? Hundreds of billions. So
the next time you hear from the “Fix the Debt” crowd about how we can’t afford
new roads or rail or cops or teachers — or that we need to cut the benefits of
Social Security recipients — remember our giant tax-exempt pool.
This is of course part of our great experiment: How much wealth and how much income can we cram into the top one percent before the bottom 90% explodes? We're still trying our darnedest find out.