Do the Rich Capture All the Gains from Economic Growth?
Russ Roberts
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Much of the wealth of the wealthiest is in the form of stocks, which are not part of income until dividends are received or until capital gains are realized, and which can be passed to the next gen with estate taxes being taken only then, and only if they haven’t managed to shelter the transaction via life insurance and other means to avoid taxes. So this vast sea of inherited wealth continues to accumulate in the hands of the wealthiest, and, of their houses are already paid for, they can just let the money ride, taking out only what they need to cover their lifestyles ( their highly tax deductible lifestyles I would wager), which might look like “income” the way this article is written, but which doesn’t involve actual earned income from a job, only dividends and annuities.