Issues
The robustness of the American middle class in the twentieth century created a gateway for working class families to realize stability, stronger communities, and overall economic development. Over the past several decades, however, the middle class has shrunk as home ownership and upward class mobility are becoming less attainable due to rising costs, stagnant wages, and wealth consolidation. As these opportunities become increasingly prohibitive, democracies suffer. Protecting the vitality and breadth of the middle class is a key antidote to crime, despair, and extremism.
Create an “Employee Fairness” Doctrine:
This would reward companies that cap CEO compensation at 25× their median worker's salary by paying a reduced 25% corporate tax rate, while those exceeding this threshold would pay 31%. This policy would generate billions in additional tax revenue from corporations that disproportionately reward executives at the expense of the workforce responsible for generating company profits. Examples like the Tax Excessive CEO Pay Act provide a valuable framework for this reform.
Beyond the fiscal benefits, narrower pay gaps would strengthen employee motivation and productivity. When workers receive fairer compensation for their contributions, they develop greater organizational commitment and work more efficiently—creating a virtuous cycle that benefits both employees and the company's bottom line.
Policy Solution
2. Progressive Surtax on Ultra-High Earners
Impose a 2–3% surtax on income above $10 million, 5% on income above $50 million, and levy a 1% annual wealth tax on billionaires, whose effective tax rates are often lower than those of ordinary Americans. A progressive surtax on ultra-high earners addresses growing wealth concentration while generating substantial revenue from those with the greatest ability to pay. Individuals earning over $10 million annually represent a tiny fraction of taxpayers but control a disproportionate share of national wealth—wealth often derived from capital gains, stock options, and other income sources taxed at lower rates than ordinary wages. A modest 2–3% surtax on income above $10 million and 5% above $50 million would raise billions in revenue without meaningfully impacting these individuals' quality of life or spending capacity, while helping fund critical public investments in infrastructure, education, and healthcare. This approach reduces fiscal deficits, counteracts rising income inequality, and ensures the tax system better reflects the principle of progressive taxation, where those who benefit most from economic structures contribute proportionally more to sustaining them.
A 1% annual wealth tax on billionaires corrects a fundamental inequity in the current system, where ultra-wealthy individuals often pay lower effective tax rates than middle-class workers by holding assets that appreciate untaxed until sold and utilizing sophisticated tax avoidance strategies. This modest levy would generate tens of billions annually from approximately 700-800 billionaires while barely impacting their net worth growth, as most billionaire wealth increases by far more than 1% per year through investment returns. Beyond revenue generation, this policy ensures those with the greatest capacity to contribute do so proportionally, strengthening the legitimacy and fairness of the tax system overall.