In other words, if your wealth is similar to the median net worth figure, that means 50% of the country has less than you and 50% has more than you.
As of 2024, the median net worth in America is $124,041, according to UBS. That’s an astonishing five times lower than the average net worth of $620,654.
This immense gap between average and median wealth is a reflection of America’s exceptionally high wealth inequality.
Zooming out, UBS found that America’s median wealth level made it the fifteenth wealthiest country in 2025 — lagging behind Australia, Canada, New Zealand and Italy.
The high wealth inequality is also reflected in the unaffordability of housing.
The wealth divide has been an issue for decades. What is the solution? Do you favor fed program to block corporate ownership of residential property?
St Louis Federal Reserve guy spoke to our group last year. They think a major factor is red lining. Minorities could not own homes due to discrimination. They missed out on that growth in assets. Their solution is slave reparations as a way to catch up.
Asking wealthy to pay fair share of taxes is often suggested but seems iffy. Wealth tax suggested but complicated.
Perhaps a partial solution is taxing all capital gains the same as income. Not a 100% solution but it levels the playing field more.
An additional benefit to such a reform would boost tax revenue.
And according to whom you read such a measure either has zero effect on economic growth or boosts economic growth.
Perhaps inheritance tax above a certain threshold might be considered. The wealthy have benefited from lower capital gains taxation for decades that aided the creation of wealth..
One cannot perfectly level the playing field but the above reforms might be enough to restore some balance.
We certainly do not want to destroy wealth creation within the economic system.
And yes there will always be some poor people as some folks conspicuously consume.
No one mentioned that investors would likely make changes to their portfolios and what consequences that would have. Typically changes in tax policy ignore consequences like the Laffer curve.
One side effect might be transferring funds offshore. Another delaying taking profits. Accelerating tax loss sales.
3/4 of all capital gains goes to the top 10%
US long term max capital gains tax rate is 20%. Japan is 20% also.
Quite a few other nations have higher capital gain tax.
So where are the wealthy going to move their investments?
Nah, according to the world’s richest man, we’ll all be living the high life in 20 years. No need to save money now for your future, AGI will be our sugar daddy!
The capital gain tax rate has been higher throughout nearly the entirety of our history. I think investors would do just fine and would not be compelled to leave if they had the same rate today as they did in say, the 80s and 90s, when the top rate was 28% - ya know, back when “Greed was Good.”
That and doing away with the stepped up cost basis at death. There is no reason to allow the holders of multi-generational fortunes to escape taxation completely.
Especially on assets likely equities - that money is almost always windfall money - like winning a lottery (which is taxed). I’d continue to grant some exemptions for some real estate to not force the sale of real property to pay a tax.
Especially family farms. It doesn’t take much acreage to have several million dollars to transfer to the next generation. That includes farm equipment.
A.major aspect of capital gains is stepped up basis when you die. Your heirs inherit with their cost basis set to market value on your date of death. Hence no capital gains tax collected on inherited wealth.
Capping stepped up basis at some reasonable number like $5MM has been suggested. That would cause division (or large mortgages) on businesses, farms, ranches, etc. Some that have been in family for generations.
Bottom line. Someone has to pay. Everyone hopes someone else pays.
