The pitchforks are out. A recent Politico/Morning Consult poll finds 61% of Americans think there should be a tax on rich people’s wealth. Other polls show many Americans support very high taxes, north of 70%, on the highest incomes. While the poll questions may only apply to a tiny population— 0.002% of Americans, the very wealthy—higher taxes on income and a tax on wealth may be in the future of many Americans.
Between unfunded entitlements, like Social Security, and growing support for Medicare for All—at least among the liberal wing of the Democratic party—the US may find itself facing bigger bills than ever. Paying them while keeping debt in check will require taxing more people than just the top 0.002%. If the goal is to also make the tax system more progressive, odds are the so-called mass affluent (pdf)—Americans with between $250,000 and $1 million in income-producing assets—will be facing higher taxes too. If you’re making plans for your future savings and employment, it’s time to consider if we’ve reached a tipping point and if higher tax rates are in your future.