Actually, about 35 to 45% of wealth is inherited in the U.S. (AOC is thinking of the worldwide figure, which is higher).
35-45% is still too much!
brookings.edu/blog/social-mo…
35-45% is still too much!
brookings.edu/blog/social-mo…
Ironically the reason America's number is so much lower is capitalism. We have a ton of people who start companies and get insanely rich from that.
But since dynamism is falling and competition decreasing, our inherited wealth % might rise dramatically in the next generation.
But since dynamism is falling and competition decreasing, our inherited wealth % might rise dramatically in the next generation.
In fact, one of the main reasons for a wealth tax is to increase dynamism: heirs lose their inherited wealth, and the only rich people who are able to increase their fortunes are those who keep investing their wealth productively.
My favorite wealth tax is an inheritance income tax: basically an estate tax with the stepped up basis removed, but taxing all kinds of parent-to-child transfers instead of just one kind.
bloomberg.com/opinion/articl…
bloomberg.com/opinion/articl…
