There's a Mind-Boggling Number of Rich People in America
In 2014, the economists Owen Zidar and Eric Zwick were asked by the Treasury to conduct a study on the tax burden of private business owners. It was tricky to figure out how much these sorts of business owners — auto dealers, contractors, the like — actually owed in taxes: After Reagan's 1986 tax reforms, pass-through businesses and other accounting tricks became widespread enough to obscure this…
In 2014, economists Owen Zidar and Eric Zwick were commissioned by the Treasury Department to investigate the tax obligations of private business owners in America. The task was complicated by the prevalence of pass-through businesses and other accounting strategies, which had become widespread since Reagan's 1986 tax reforms. These developments had made it difficult to identify this specific segment of high-net-worth individuals.
Their findings, detailed in their book "The Everywhere Millionaire: Who Is Really Rich in America and How They Got There," revealed that there are approximately three million private business owners with an average wealth of around $25 million. The authors refer to this group as "Main Street Millionaires." This class of wealthy Americans plays a significant role in both the economy and the political landscape of the United States.
In an interview, Zidar and Zwick discussed the methodology they employed to ascertain the actual number of affluent individuals residing in the country.
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- There’s a Mind-Boggling Number of Rich People in America bloomberg.com
