Tag: Oligarchs

BIG CORPORATIONS AVOID TAXES WHILE EMPLOYEES STRUGGLE

SUMMARY: Eighty-eight large corporations with over $105 billion in profits paid no federal income tax in 2025. Moreover, they got almost $5 billion in tax rebates! Many large and profitable companies also pay their employees so little that they rely on government-subsidized Medicaid for health insurance and the Supplemental Nutrition Assistance Program (SNAP) for food. The hundreds of billions of dollars in taxes dodged each year, as well as the cost of government benefits for employees, contribute significantly to the annual federal budget deficit.

(Note: If you find a post too long to read, please just skim the bolded portions. Thanks for reading my blog!)

(Note: Please follow me and see my blog posts on Bluesky at: @jalippitt.bsky.social. Thanks!)

At least 88 large, profitable corporations paid no federal income tax in 2025. Corporate tax dodging has increased in recent years in large part because of the two tax cut laws enacted by Trump and congressional Republicans: the so-called One Big Beautiful Bill in 2025 and the Tax Cuts and Jobs Act in late 2017.

These 88 corporations had over $105 billion in profits, paid no income tax, and got almost $5 billion in tax rebates! Given the federal corporate income tax rate of 21%, they dodged $27 billion in taxes. Based on the 35% income tax rate in place before the two tax cut laws, these corporations had their taxes cut by $41 billion in 2025 alone. [1]

Note that this analysis includes only corporations that have filed their 2025 tax returns and are one of the 500 largest U.S. corporations. It does not include thousands of other corporations or any privately owned companies.

Here are some of the most profitable and well-known corporations that paid no 2025 federal income tax and their 2025 profits:

  • Walt Disney                $8.3 billion in profits
  • Cheniere Energy        $7.0 billion in profits
  • CVS Health                $6.6 billion in profits
  • Tesla                           $5.7 billion in profits
  • Citigroup                    $4.5 billion in profits
  • United Airlines           $4.3 billion in profits
  • Amer. Elec. Power      $3.7 billion in profits
  • PG&E                         $2.5 billion in profits
  • 3M                              $1.8 billion in profits
  • Coinbase (crypto)       $1.6 billion in profits
  • Palantir Tech.              $1.6 billion in profits
  • PayPal Holdings         $1.4 billion in profits
  • Biogen                        $1.2 billion in profits
  • Yum! Brands              $1.0 billion in profits (KFC, Taco Bell, Pizza Hut, etc.)

State corporate income taxes are typically based on federal income tax laws. As a result, these 88 corporations that paid no federal income tax also paid very little state income tax; their effective state tax rate was only 1.4%.

One of the main ways corporations reduce their federal income taxes is through special tax breaks written into federal laws. These include:

  • Accelerated depreciation, which allows corporations to reduce taxes by the full amount of infrastructure expenditures in one year even if the infrastructure will last for many years. This tax break has been used to spur recovery from recessions in the past but is now a permanent part of tax law due to the two tax cut laws identified above.
  • Research and development tax credits.
  • Tax deductions for stock options given to employees.

In 2025, corporations have so far reported taking $204 billion in federal income tax breaks. This represents a huge giveaway of 18% of total corporate income taxes paid to the federal government, which were about $1,130 billion in 2025 and were paid by hundreds of thousands of corporations. [2]

Six corporations claimed $83 billion of these tax breaks (41%). These are record-breaking amounts.

  • Microsoft                                   $19 billion
  • Alphabet (Google’s parent)       $18 billion
  • Amazon                                     $17 billion
  • Meta (Facebook, Instagram)     $14 billion
  • JPMorgan Chase                       $  8 billion
  • Nvidia (chip maker)                  $  7 billion

These corporations do not need tax breaks because they are struggling; they collectively have roughly $500 billion in cash on hand. Previously, the largest one-year tax break claim had been $5 billion by JPMorgan Chase in 2024.

Meanwhile, many large and profitable companies pay employees so little that they must rely on government assistance to survive. The Government Accountability Office (GAO) recently analyzed data from eleven states on Americans who use government-subsidized Medicaid for health insurance (about 28 million adults) and/or the Supplemental Nutrition Assistance Program (SNAP) for food (about 20 million adults). Roughly half of them worked at least part-time in 2024 and of these, two-thirds worked full-time. Most of them worked for private employers in transportation, food, or retail sales jobs. Of the approximately 150 employers across the eleven states studied that had employees enrolled in Medicaid or SNAP, seventeen were among the 50 largest corporations in the country by number of employees. The following companies were among the 25 employers with the greatest number of employees using Medicaid and/or SNAP in multiple states: Walmart, Amazon, McDonald’s, FedEx, Home Depot, Lowe’s, Target, Walgreens, and CVS. [3]

The hundreds of billions of dollars in taxes dodged each year, as well as the cost of government benefits for employees, mean that large, profitable corporations contribute significantly to the annual federal budget deficit and to the growing cumulative federal debt that just hit $40 trillion. The wealth of these corporations and their executives and shareholders gives them substantial political and economic power, which they have been wielding in their self-interest and to the detriment of all of the rest of us.

For lots of good news see Jess Craven’s Chop Wood Carry Water blog’s most recent good news Sunday post here.

[1]      Gardner, M., & Marasini, S., 4/14/26, “At least 88 profitable U.S. corporations paid zero federal income tax in 2025,” ITEP (https://itep.org/88-profitable-corporations-paid-zero-income-tax-in-2025/)

[2]      Buttikofer, S., & Gardner, M., 8/14/26, “Six companies reaped $83 billion in federal tax breaks in 2025,” ITEP (https://itep.org/six-companies-83-billion-in-federal-tax-breaks/)

[3]      U.S. Government Accountability Office, 6/22/26, “Federal social safety net programs: Millions of workers, including many employed by large employers, continue to rely on Medicaid and SNAP,” (https://www.gao.gov/products/gao-26-108703)

TRUMP AND HIS REGIME DON’T CARE ABOUT YOU

SUMMARY: President Trump and his regime don’t care about you and aren’t protecting your health, safety, or financial security. Here are some examples of actions they have taken that put you at risk.

(Note: If you find a post too long to read, please just skim the bolded portions. Thanks for reading my blog!)

(Note: Please follow me and see my blog posts on Bluesky at: @jalippitt.bsky.social. Thanks!)

Trump and his regime don’t care about you, your health or safety, or protecting you from financial fraud and crime. They demonstrate this in many ways. Here are some examples.

The Trump regime is NOT protecting you from financial fraud and abuse. Since its first days in office, it’s been weakening the Consumer Financial Protection Bureau (CFPB). Most recently, the Trump-controlled CFPB announced it would no longer make consumer complaints public. Failure to make complaints public will protect financial companies from scrutiny and transparency, hiding corporate misconduct from the public. It removes the incentive companies have to avoid, fix, and respond to problems that comes with public awareness and publicity. Furthermore, the CFPB recently purged its backlog of complaints and canceled a policy requiring refunds to consumers who had been overcharged. [1]

Consumer complaints filed with the CFPB have doubled in 2025 to 6.6 million (from 3.2 million in 2024). Since 2011, the CFPB has received and made public more than seventeen million complaints. Nearly six million consumers have received some form of relief in response to their CFPB complaints over its 16 years of operation. The CFPB has gotten consumers over $20 billion in compensation based on complaints involving loans, bank accounts, credit reports, and other financial matters.

The Trump regime is also NOT protecting us from drug and human trafficking as well as financial fraud because it has stopped blocking the money laundering necessary for these criminal enterprises. It has terminated the shell company [2] registry of the Financial Crimes Enforcement Network (FinCEN) in the Treasury Department. Congress created the registry in 2021 through the Corporate Transparency Act (CTA). It was a response to the reporting of investigative journalists who documented that between 1999 and 2017 U.S. banks had processed more than $2 trillion in potentially laundered money for criminals using shell companies and operating out of Russia, China, Iran, and Syria. At the time, Senator Rubio, now Trump’s Secretary of State, called the CTA “the most significant anti-corruption and money laundering law in decades.” [3]

To combat this extensive money laundering, the CTA requires every individual owning at least 25% of a shell company to register their legal name, date of birth, and residential street address; and provide an image of an official identification document with a unique identifying number. The Trump regime has now (probably illegally) stopped enforcing this law. [4] The termination of the shell company registry also facilitates oligarchs’ ability to hide their money and avoid taxes. Trump’s Treasury Department also destroyed the registry’s data that had been previously collected.

Law enforcement, national security experts, and small business owners are alarmed. Senator Elizabeth Warren (D-MA) has called this lack of enforcement of the CTA “a gift to cartels, criminals, and U.S. adversaries.” [5]

On a different front, Trump’s Justice Department has reduced or stopped investigations and prosecutions of crimes like tax evasion, drug trafficking, and sex trafficking. The number of personnel assigned to these crimes has declined because of staffing shortages, funding cuts, and the reassignment of agents to immigration enforcement. [6]

The Trump regime is also NOT protecting your health. Measles in the U.S. is at levels not seen in many years and children have died from it. Nonetheless, Trump issued an executive order demanding states revise their recommendations for childhood vaccinations in ways that will reduce vaccinations for measles, as well as for mumps and rubella. Although the executive order does not change the Centers for Disease Control and Prevention’s recommendations or insurance coverage, it will increase confusion over and distrust of vaccinations that Trump’s Secretary of Health and Human Services Kennedy has been fomenting. This will result in more diseases, disabilities, and deaths. [7]

Foodborne illnesses in the U.S. are at very high levels. This year’s 10,500 cases to-date are almost ten times the annual rates in 2021 – 2025. A major contributor is the Trump regime’s cuts of more than 40% to food safety detection systems, including reduced funding for federal agencies to conduct food inspections and for grants to state and local health departments that track outbreaks. [8]

To add insult to injury, the Trump regime is also reducing access to health insurance and raising its cost for millions of Americans. In late June 2026, its own Department of Health and Human Services reported that at least five million people lost public health insurance in the first six months of the year, a drop of about 13%. For those remaining on public plans, premiums have spiked, more than doubling for some, while deductibles have increased by about $1,000 a person for many as they chose cheaper policies. [9]

The Trump regime announced in June plans to cancel 53 of 66 active grants from the Teen Pregnancy Prevention (TPP) program. TPP was created by bipartisan legislation in 2009 and has been credited with contributing to reducing the unwanted teen pregnancy rate by 65%. The Trump regime wants to end the comprehensive sex education of TPP programs and focus on abstinence promotion, despite evidence that abstinence only sex education is ineffective. A federal judge recently paused the regime’s attempt to put limits on the TPP grants’ sex education programs. [10]

Other examples of Trump regime actions that may hurt you:

  • Canceled the rule requiring airlines to compensate you for canceled flights (after United and Delta donated a million dollars to Trump).
  • Ended the IRS’s free tax return filing program (after the TurboTax tax return prepration software’s parent company gave a million dollars to Trump).
  • Weakened gun laws including restrictions that have been in place since 1934 on sawed-off (and therefore easily concealed) shotguns and silencers.
  • Promote cryptocurrency. But that’s a whole other story.

For lots of good news see Jess Craven’s Chop Wood Carry Water blog’s most recent good news Sunday post here.

[1]      Conley, J., 8/14/26, “In gift to abusive Wall Street firms, Trump CFPB moves to suppress consumer complaints,” Common Dreams (https://www.commondreams.org/news/cfpb-complaint-database)

[2]      Shell companies are legal entities that don’t have any physical presence or operations but are used for moving money and processing financial transactions.

[3]      Baratta, J., 8/14/26, “Trump makes crime legal,” The American Prospect (https://prospect.org/2026/08/14/trump-makes-crime-legal-corporate-transparency-act-treasury/)

[4]      Cox Richardson, H., 8/15/26, “Letters from an American blog,” (https://heathercoxrichardson.substack.com/p/august-15-2026)

[5]      Baratta, J., 8/14/26, see above

[6]      Cox Richardson, H., 8/13/26, “Letters from an American blog,” (https://heathercoxrichardson.substack.com/p/august-13-2026)

[7]      Cox Richardson, H., 8/13/26, see above

[8]      Cox Richardson, H., 8/20/26, “Letters from an American blog,” (https://heathercoxrichardson.substack.com/p/august-20-2026)

[9]      Cox Richardson, H., 8/20/26, see above

[10]     Conley, J., 8/19/26, “Federal judge blocks Trump and RFK effort to get more teens pregnant,” Common Dreams (https://www.commondreams.org/news/teen-pregnancy-programs)

BILLIONAIRES ARE ALREADY BUYING THE 2026 ELECTIONS

SUMMARY: Billionaires are already spending record amounts of money on 2026 election campaigns. Most of this money flows through Political Action Committees (PACs) and goes to Republicans. The Democratic National Committee (DNC) and state Democratic committees should ban PAC money from their primary elections because it distorts election results, perverts governments’ policies, and drowns out the voices of working people.

(Note: If you find a post too long to read, please just skim the bolded portions. Thanks for reading my blog!)

(Note: Please follow me and get notices of my blog posts on Bluesky at: @jalippitt.bsky.social. Thanks!)

One of the problems with great economic inequality in a democracy is that the wealthy will find a way to buy policy decisions and enforcement that favor them. It can be through outright bribes. Or it can be more subtle. Our campaign finance system effectively lets the wealthy buy candidates. First, candidates without access to wealthy people’s money generally don’t even bother to run because they don’t have a chance. Second, during the campaign, wealthy donors fund and support candidates who will do their bidding once elected. Once in office, those elected want to get re-elected, so they curry favor with wealthy donors by supporting policies donors favor to ensure their funding for re-election campaigns.

Although U.S. campaign finance laws limit the amount an individual can give directly to a candidate or a political party, the Supreme Court’s 2010 Citizens United decision allows unlimited spending by super Political Action Committees (PACs). PAC spending is supposed to be independent of the candidate being supported, but the rules on independence are ignored and unenforced.

Therefore, much of the billionaires’ money flows through PACs. Nine of the eleven richest PACs fund Republican campaigns. Trump’s MAGA Inc. PAC leads the way with $89 million from billionaires. Musk’s America PAC is second at $45 million. The Senate and House PACs for Republicans have received a combined $66 million while those for Democrats have received $37 million. The other five richest PACs all fund Republicans and have between $15 and $10 million.

Billionaires are willing to spend lots of money on campaigns (or bribes) because the return on their investment is huge. A few million dollars can buy them tax cuts worth billions as the Republicans 2017 tax cut bill and the 2025 so-called One Big Beautiful Bill did. The wealthy’s campaign spending also buys them deregulation or contracts for their businesses that are worth billions. In the 2024 federal elections, billionaires accounted for almost 20% of all campaign spending. [1]

Grassroots organizing that gets lots of people to vote and educates them to distrust the advertising they see and hear from wealth-backed candidates can beat billionaires’ money, but it takes lots of work. Public matching funds for small donations to campaigns coupled with links to limits on donation size also make a huge difference as Mayor Mamdani’s campaign in New York City demonstrated. (See this previous post for more information.) Democracy is NOT a spectator sport. It takes work, participation, and voters who are paying attention and not believing the lies of wealth-backed candidates like Trump.

American billionaires are already spending big on the 2026 elections. As of March 1, the 50 highest spending billionaire families had already spent over $400 million on 2026 election campaigns. At this rate they will exceed the record for a non-presidential election and spend over $1 billion by election day. Not surprisingly, 80% of this money is going to Republican candidates or groups because Republicans have been the ones at the forefront of pushing policies that favor the wealthy. This is obscene and undemocratic. This is why we have an oligarchy running our government. [2]

Twelve of the top thirteen billionaire families have given money exclusively to Republicans. The Musk family leads the way at $71 million followed by the Yass family at $55 million and the Brockman family at $25 million. The next ten families have given between $10 million and $16 million each with the one Democratic donor at $13 million.

This is why we must change our tax laws to reduce the wealth of billionaires. (See this previous post for specifics.) They are so rich that they can afford to spend essentially unlimited amounts of money to corrupt our democracy to serve their interests, i.e., to make it an oligarchy. High levels of wealth lead inexorably to concentrated political power. [3] As Supreme Court Justice Louis Brandeis wrote almost 100 years ago, “We may have democracy, or we may have wealth concentrated in the hands of a few, but we can’t have both.”

Please contact your U.S. Representative and Senators to ask them to support a fairer tax system that taxes wealth and transfers of it. [4]

In addition to the billionaires, special interest groups are also already spending big money on the 2026 elections. Some of these special interest PACs split their money between Republicans and Democrats because they want to buy influence with both parties. A current example is the crypto industry. Its primary PAC, called Fairshake, has already raised $133 million. The vast majority of this comes from two billionaire-backed companies, Ripple and Coinbase. The crypto industry also spent heavily in the 2024 elections and some of the corrupt influence its spending bought is readily apparent. The Trump administration dropped thirteen charges for security law violations against Binance, the largest cryptocurrency exchange and pardoned its billionaire founder. The crypto industry has been pushing Congress, successfully so far, to leave the crypto industry largely unregulated and the beneficiary of tax loopholes.

Billionaires and special interest PACs spend money in Democratic primaries, often to defeat candidates who strongly oppose their policy interests and sometimes to support candidates who support their interests. The crypto industry has done this frequently, as have the AI industry and pro-Israel interests.

This is why my previous post called for the Democratic National Committee (DNC) and state Democratic committees to ban super PAC and dark money (i.e., money where the true donor is unidentified) from their primary elections. A coalition of four Democratic Senators (Merkley [D-OR], Warren [D-MA], Welch [D-VT], and Van Hollen [D-MD]) and Independent Sanders (VT) are pushing Democrats and the DNC to ban money from billionaire- and corporate-backed PACs from Democratic primary elections. They noted in a letter to the DNC that unlimited PAC spending will “distort our elections and drown out the voices of working people.” [5]

For lots of good news, see Jess Craven’s Chop Wood Carry Water blog’s most recent good news Sunday post here.

[1]      Johnson, J., 3/25/26, “‘Modern-day royalty’: 50 billionaire families have already pumped over $430 million into midterms,” Common Dreams (https://www.commondreams.org/news/billionaire-spending-2026-midterms)

[2]      Americans for Tax Fairness, 3/25/26, “No Kings – No billionaire kingmakers either,” (https://americansfortaxfairness.org/billionaire-kingmakers/)

[3]      Bivens, J., 11/17/25, “Raising taxes on the ultrarich,” Economic Policy Institute (https://www.epi.org/publication/raising-taxes-on-the-ultrarich-a-necessary-first-step-to-restore-faith-in-american-democracy-and-the-public-sector/)

[4]     You can find contact information for your US Representative at http://www.house.gov/representatives/find/ and for your US Senators at http://www.senate.gov/general/contact_information/senators_cfm.cfm.

[5]      Prager, S., 4/27/26, “Bernie Sanders lead Senators in demand to end super PACs in Democratic primaries,” Common Dreams (https://www.commondreams.org/news/sanders-dnc-dark-money)

WHAT DEMOCRATS SHOULD BE DOING

Democrats should be taking steps now to lay the ground work for electoral successes and policy making in the future. Running against Trump is not enough; Democrats need to state what they are for. They should ban super PAC and dark money from their primaries and support progressive policies.

SUMMARY: Democrats should be taking steps now within the national party and at the state level to lay the ground work for electoral successes and for policy making in the future. Running against Trump is not enough; Democrats need to clearly state what they are for. Americans support progressive policy solutions. The Democratic National Committee (DNC) and state committees should ban super PAC and dark money from their primary elections.

(Note: If you find a post too long to read, please just skim the bolded portions. Thanks for reading my blog!)

(Note: Please follow me and get notices of my blog posts on Bluesky at: @jalippitt.bsky.social. Thanks!)

While Democrats have very limited influence on national policy right now, there’s a lot they should be doing now within the national party and at the state level to lay the ground work for electoral successes and for policy making in the future. My previous two series of blog posts on fair taxation and the affordability crisis identified policies that Democrats should be supporting at the national and state level, and enacting now at the state level.

Electorally, running against Trump is not enough; Democrats need to clearly state what they are for. Sure, Trump is a convicted criminal and unpopular, but nobody cares about that if they cannot afford basic needs and they think Trump and the Republicans will address the affordability crisis better than Democrats. That’s what happened in 2024 in a nutshell.

Voters will not believe Democrats are serious about addressing the affordability crisis if they don’t unequivocally embrace progressive remedies, as Senators Warren (D-MA) and Sanders (I-VT) and Representative Ocasio-Cortez (D-NY), among others, have been doing. Opponents, including Democrats, call their policies “too progressive,” which is code for opposition to any policy that favors working Americans over the oligarchs.

The real split among Democrats is between (a) Democrats on the take from the oligarchs of the crypto industry, Big Tech and AI businesses, and Wall Street; and (b) Democrats who are standing up for working Americans and against the oligarchs and their monopolistic companies. It’s that split that deprives Democrats of unity and of a consistent message that resonates with the real frustrations of everyday Americans. Democrats need to acknowledge the failures of our rigged economic system and clearly advocate for structural changes to the status quo that would: [1]

  • Boost pay including by raising the minimum wage
  • Build more affordable homes and crack down on corporate landlords
  • Increase Social Security checks
  • Provide universal child care
  • Block price gouging
  • Strengthen unions
  • Establish universal health care
  • Tax the wealthy and giant corporations
  • Stop members of Congress from buying and selling stock and crypto assets (i.e., insider trading)

For years, polling data have repeatedly shown that Americans support progressive policy solutions to the challenges they face in their daily lives. For example, over 70 percent of Americans support Medicare for All, which would make health insurance more affordable and health care more accessible and less fraught. Seventy percent believe our tax system is unfair, while 66% support universal free child care. More broadly, 66% of Democrats now view socialism favorably, while only 42% view capitalism favorably. [2]

To enact this policy agenda and to get Democrats to unequivocally support it, billionaires must be stopped from buying our elections and our policy making process. A Democratic Party that worries more about offending wealthy donors than enacting policies that support working Americans will not succeed. Democrats should refuse campaign money from organizations and individuals opposed to basic workers’ rights and a strong social safety net.

As a first step, the Democratic National Committee (DNC) and state committees should ban super PAC and dark money (i.e., money where the true donor is unidentified) from their primary elections. Unfortunately, the DNC recently voted for a resolution that simply condemned the influence of dark and corporate money in Democratic primaries. It needs to go further and ban such money, which it can do, given that it sets the rules for its own primary elections. Corporate and Republican-linked super PACs and dark money organizations spent over $200 million in 2024 Democratic primaries. Their goal, sometimes successful, was to defeat progressive Democrats, particularly ones opposing Israel’s genocidal war on the Palestinians. [3] The Israel, crypto, and AI interests have been, and will in 2026, skew Democratic primaries and candidates to ones supporting their interests, which are not the interests of mainstream Democrats and Americans.

A ban on super PACs and dark money would force Democrats to turn to smaller donations from regular people, as Senators Warren (D-MA) and Sanders (I-VT) and New York City Mayor Mamdani have successfully done. This is what democracy, as opposed to oligarchy, looks like.

I encourage you to contact your state and local elected officials, as well as your U.S. Representative and Senators, to ask them to support policies that support working Americans. If any of these officials are Democrats, I urge you to point out that just running against Trump isn’t enough, as we saw in 2024, and that they need to run on what they stand for. [4]

If you’re frustrated that the Democrats aren’t unequivocally supporting working Americans, you might want to look at and perhaps support the Working Families Party. They’ve put forth a platform, their Working Families Guarantee, which is reminiscent of FDR’s economic bill of rights. It includes:

  • A home you can afford
  • Healthcare you can rely on
  • A good job to support your family
  • Childcare when and where you need it
  • Paid family and medical leave
  • Taxing the rich, and
  • Getting big money out of politics.

For lots of good news, see Jess Craven’s Chop Wood Carry Water blog’s most recent good news Sunday post here.

[1]      Warren, E., 1/12/26, “The Democratic Party is at a crossroads,” The Nation (https://www.thenation.com/article/politics/elizabeth-warren-democrats-2026-midterms/)

[2]      Meyerson, H., 1/7/26, “The Democratic base is social democratic,” The American Prospect (https://prospect.org/2026/01/07/democratic-base-socialist-democratic-zohran-mamdani-medicare-for-all/)

[3]      Wilkins, B., 4/10/26, “DNC half-measures condemning dark money won’t cut it, says Sanders as he demands total ban,” Common Dreams (https://www.commondreams.org/news/bernie-dark-money-ban)

[4]     You can find contact information for your US Representative at http://www.house.gov/representatives/find/ and for your US Senators at http://www.senate.gov/general/contact_information/senators_cfm.cfm.

FAIR TAXATION IS ESSENTIAL FOR DEMOCRACY Part 3

Democracy requires fair taxation. The current U.S. tax system is unfair. Given the huge inequalities in wealth, wealth and transfers of it need to be taxed directly. Wealth taxes are essential to re-establishing a fair tax system and reducing economic inequality.

Democracy requires fair taxation. The current U.S. tax system is unfair. Given the huge inequalities in wealth, wealth and transfers of it need to be taxed directly. Wealth taxes are essential to re-establishing a fair tax system and reducing economic inequality.

(Note: If you find a post too long to read, please just skim the bolded portions. Thanks for reading my blog!)

(Note: Please follow me and get notices of my blog posts on Bluesky at: @jalippitt.bsky.social. Thanks!)

Democracy requires fair taxation. The current U.S. tax system is unfair. My previous post focused on increasing the progressivity of individual and business income tax rates as one essential piece of re-establishing a fair tax system and reducing economic inequality. This post focuses on taxing wealth.

Wealth inequality has grown even more dramatically than income inequality. U.S. billionaires’ wealth has doubled since 2019. [1] Wealth inequality is so great that the only way to reduce it is to tax wealth and transfers of it directly. To re-establish a fair tax system and reduce economic inequality, we must: [2]

  • Tax existing wealth to slow and ultimately reverse the huge growth in wealth inequality and because the wealthy can (and do) maintain their extravagant lifestyles without having income. They borrow money and use their wealth as collateral for the loans. Therefore, they pay little or no income tax.
  • Tax increases in wealth even if assets aren’t sold. These increases in wealth are effectively income even when not sold.
  • Tax the intergenerational transfer of wealth because otherwise America will have a perpetual class of reigning, oligarchic families.
  • Give the Internal Revenue Service (IRS) the resources to enforce U.S. tax laws and dramatically reduce the hundreds of billions of dollars a year of tax dodging by wealthy individuals and businesses, i.e., not paying the taxes they legally owe.

A wealth tax makes sense and is fair because, among other reasons, the main source of wealth for the middle class – their home – has a wealth tax on it, i.e., the property tax. Therefore, taxing other forms of wealth that the wealthy own is fair and reasonable. There are many proposals on the table to tax wealth at the state and local levels, [3] as well as at the federal level. At the federal level, the Billionaires Income Tax Act would tax the increase in value of assets (e.g., stocks) even if they aren’t sold. There are also two different wealth tax proposals, one from Senator Warren (D-MA) and Representative Jayapal (D-WA), the Ultra-Millionaire Tax Act, and another from Senator Sanders (I-VT) and Representative Khanna (D-CA), the Make Billionaires Pay Their Fair Share Act. There is also the Working Americans’ Tax Cut Act that would shift some of the income tax burden from low- and moderate-income households to those with incomes of over $1 million.

In California, a one-time 5% wealth tax on billionaires is being proposed. Bob Reich explains why this makes sense in this 3-minute video. California’s 200 billionaires would pay $100 million a year for the next 5 years. This would allow the state government to provide health and food assistance benefits to millions of residents who would otherwise lose them due to federal funding cuts.

Current federal laws allow wealthy parents to pass their wealth on to their children with little or no tax being paid, including on assets that have increased in value while the parents owned them. At least 90 billionaires died over the last ten years and left their beneficiaries a total of $455 billion. Roughly $250 billion of that was increases in the value of assets during the time the deceased person held them (e.g., stock in a corporation). There was no capital gains tax paid on that $250 billion because current laws allow it to be transferred at its current value; this is the so-called “stepped up basis” tax loophole. This loophole should be repealed.

The estate tax has been cut in recent years and should be increased to decrease economic inequality, increase fairness, and curb the perpetuation of an oligarchic class in American society. The For the 99.5% Act proposed by Senator Sanders (I-VT) and Representative Gomez (D-CA) would reduce the size of an estate that is exempt from taxation from $30 million per couple to $7 million. It would also apply progressive tax rates based on the size of an estate (as opposed to the current flat rate of 40%). [4]

The IRS has been attacked and vilified by Republicans and the oligarchs for decades, presumably because they and their supporters don’t want to pay taxes, including by dodging taxes they owe. They’ve cut its funding and therefore its staffing, particularly for enforcement, leaving hundreds of billions of dollars owed by wealthy individuals and companies uncollected each year. President Biden and Democrats in Congress provided $80 billion in additional funding to the IRS to address understaffing and weak enforcement. For every dollar spent auditing the wealthy, the government recovered $26.

As soon as the Republicans and Trump returned to power, they began cutting tens of billions from the IRS’s funding and reducing its staffing. In 2025, about 22,000 employees left the IRS, about one-quarter of its workforce. Seven former IRS Commissioners, going back to President Reagan, co-wrote an opinion piece in the New York Times in February criticizing the cuts to funding and staffing at the IRS. [5] The IRS workers’ union, the National Treasury Employees Union, pushed back against some of the Trump administration’s cuts. So, in February 2026, the Trump administration terminated the union’s collective bargaining agreement.

To better serve taxpayers, the IRS introduced Direct File in 2024, which enabled many taxpayers to file simplified income tax returns for free – saving taxpayers an estimated $23 billion a year in tax preparation costs. Nearly 300,000 taxpayers used it in 2025. However, tax preparation and software companies have long opposed it because it reduces the demand for their services. So, the Trump administration has terminated it. In addition to its lobbying, the tax preparation industry’s opposition included, for example, Intuit, the parent company of Turbo Tax, donating $1 million to Trump.

I encourage you to contact your state and local elected officials, as well as your U.S. Representative and Senators, to ask them to support a fairer tax system that taxes wealth and transfers of it. Also ask your members of Congress to support funding for the IRS so it can enforce our tax laws. You can find contact information for your US Representative at http://www.house.gov/representatives/find/ and for your US Senators at http://www.senate.gov/general/contact_information/senators_cfm.cfm.

For lots of good news, see Jess Craven’s Chop Wood Carry Water blog’s most recent good news Sunday post here.

[1]      Collins, C., 4/5/26, “Tax the rich across the land!” Common Dreams (https://www.commondreams.org/opinion/how-to-tax-the-rich)

[2]      See this previous post on reducing economic inequality, which includes information on tax reforms proposed by the Economic Policy Institute and in the Money Agenda proposed by a group called Patriotic Millionaires.

[3]      Meyerson, H., 3/12/26, “Democrats get serious about taxing the rich,” The American Prospect (https://prospect.org/2026/03/12/democrats-get-serious-taxing-rich/)

[4]      Conley, J., 12/13/24, “Why can’t we fund universal public goods? Blame the tax-dodging billionaire nepo babies,” Common Dreams (https://www.commondreams.org/news/what-billionaires-avoid-taxes)

[5]      Sorapuru, J. E. J., 4/8/26, “Smaller IRS still pressured by Trump,” The Boston Globe

FAIR TAXATION IS ESSENTIAL FOR DEMOCRACY Part 2

Democracy requires fair taxation. The current U.S. tax system is unfair. Increased progressivity of individual and business income tax rates, especially on income from wealth (versus work), is one essential piece of re-establishing a fair tax system and reducing economic inequality.

(Note: If you find a post too long to read, please just skim the bolded portions. Thanks for reading my blog!)

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The American democracy described in the Declaration of Independence and further detailed in the  preamble to the Constitution requires fair taxation linked to meaningful representation to produce a government of, by, and for the people. (See this previous post for more detail.)

Fair taxation requires individuals and businesses to pay their fair share. The current U.S. tax system is unfair based on common sense,an historical perspective, and the current experiences of everyday Americans. It has allowed wealth and income inequality to grow dramatically in the last 45 years, both among individuals and among businesses. To re-establish a fair tax system and reduce economic inequality, the U.S. must: [1]

  • Increase the progressivity of individual and business income tax rates, especially on income from wealth (versus work), such as interest, dividends, and capital gains on the sale of assets that have appreciated (i.e., increased in value).
  • Tax increases in wealth even if assets are not sold. These increases in wealth are effectively income even when the assets are not sold.
  • Tax existing wealth to slow or reverse the huge growth in wealth inequality and because the wealthy can (and do) maintain their extravagant lifestyles without having income by borrowing money and using their wealth as collateral for the loans. U.S. billionaires’ wealth has doubled since 2019 and in 2024 alone, the 19 richest billionaires added one trillion dollars to their wealth, an average of over $50 billion each. [2]
  • Tax intergenerational transfers of wealth because otherwise America will have a class of reigning, perpetual oligarch families.
  • Close loopholes in tax laws to prevent tax avoidance by wealthy individuals and corporations.
  • Establish an international tax system to prevent tax avoidance by wealthy individuals and corporations through the shifting of wealth and income streams to low-tax countries. [3] [4]
  • Give the Internal Revenue Service (IRS) the resources to enforce U.S. tax laws and dramatically reduce the hundreds of billions of dollars a year of tax dodging by wealthy individuals and businesses when they do not pay the taxes they legally owe.

Progressive income tax rates are fair (i.e., percentage tax rates that increase with increases in income) because the value of $1,000 of additional income to a millionaire is far less than it is to someone with a $50,000 or $100,000 income. Or from the perspective of taxes, a tax of $100 (10%) on that $1,000 of additional income has much less impact on the millionaire than the lower income individual.

What tax rates are fair across the income range is, of course, a matter of judgment. However, for a starting point, a relatively small increase in the top marginal personal income tax rate (i.e., the tax rate on the last dollar of income) back to its pre-2017 level (i.e., from 37% to 39.6%) would generate revenue of over $30 billion a year for the government to use to deliver public goods that people need or want. (Note: In 1980, the top rate was 70% and it was over 90% in the 1950s and the wealthy and the economy, nonetheless, did quite well.)

Returning the tax rate on large corporations to 35% (where it was before the 2017 Republican Tax Cut Act reduced it to 21%) would make sense, be fair, and generate over $250 billion a year in revenue for the government.

I encourage you to contact your state and local elected officials, as well as your U.S. Representative and Senators, and ask them to support enacting a fairer tax system with progressive income tax rates for wealthy individuals and businesses. You can find contact information for your US Representative at http://www.house.gov/representatives/find/ and for your US Senators at http://www.senate.gov/general/contact_information/senators_cfm.cfm.

For lots of good news, see Jess Craven’s Chop Wood Carry Water blog’s most recent good news Sunday post here.

My next post will discuss taxing wealth and the intergenerational transfer of it. It will also discuss the IRS and its role in enforcing a fair tax system.

[1]      See this previous post on reducing economic inequality, which includes information on tax reforms proposed by the Economic Policy Institute and in the Money Agenda of a group called Patriotic Millionaires.

[2]      Collins, C., 4/5/26, “Tax the rich across the land!” Common Dreams (https://www.commondreams.org/opinion/how-to-tax-the-rich)

[3]      Johnson, J., 11/19/24, “Tax dodging by super-rich, big corporations costs nations half a trillion per year: Study,” Common Dreams (https://www.commondreams.org/news/global-tax-dodging)

[4]      Conley, J., 11/19/24, “G20 leaders reach ‘landmark commitment’ for global tax on ultrarich,” Common Dreams (https://www.commondreams.org/news/global-wealth-tax-2669945403)

FAIR TAXATION IS ESSENTIAL FOR DEMOCRACY

Democracy requires a government that fosters people’s freedom. Its resources must come from fair taxation. Oligarchs cut taxes and undermine democracy to consolidate their power. Economic inequality has bred discontent and distrust of government and democracy, an opening for authoritarianism.

Democracy requires a government that fosters people’s freedom based on their experiencing safety, economic security, liberty, and happiness. To do these things, it must have the resources that come from taxation. The taxes must be perceived as fair and government perceived as reasonably efficient at fulfilling its role. High and growing economic inequality has bred discontent and distrust of government – and of democracy. This has opened the door for demagogues and acceptance of authoritarianism.

(Note: If you find a post too long to read, please just skim the bolded portions. Thanks for reading my blog!)

(Note: Please follow me and get notices of my blog posts on Bluesky at: @jalippitt.bsky.social. Thanks!)

The American democracy, as announced in the Declaration of Independence, would ensure the right of the people to “Life, Liberty and the pursuit of Happiness.” The government it envisioned would “effect their Safety and Happiness.” The preamble to the Constitution expands on these principles and states that “We the People [are forming a government to] establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty.”

For a government to do these things, it must have the necessary resources. Taxes are what provide government with its resources to honor these principles and achieve these goals. They are the life blood of a democratic government of, by, and for the people. As Deval Patrick, former Governor of Massachusetts put it, “Taxes are the dues we pay to live in a civilized society.”

Historian Heather Cox Richardson had a 42-minute conversation with Dr. Vanessa Williamson of the Brookings Institution about the relationship between taxes and democracy, based on Williamson’s 2025 book, The Price of Democracy: The Revolutionary Power of Taxation in American History. I strongly encourage you to listen to all or part of it, however, I’ll share a summary of and commentary on this conversation here. (Williamson gives a 1-minute summary of the relationship between taxes and democracy at the Patriotic Millionaires conference Money. Message. Millionaires.)

American history indicates that the people are willing to pay taxes if they are perceived to be fair and the government is fostering their freedom based on their experiencing safety, economic security (aka general welfare), liberty (aka justice under the rule of law), and happiness.

The public wants government to do and provide things often referred to as public goods that include schools, roads, law and order, clean air and water, national parks, and a safety net for when things in life go wrong. These things allow people the freedom to pursue their dreams and achieve their goals. The effectiveness of governments and, therefore, their support by the people, comes from their ability to act and get things done. Revenues from taxes are, of course, essential to giving governments the capacity and power to act and deliver these public goods.

It’s important that taxes be perceived as fair and government perceived as reasonably efficient at fulfilling its role. That way the people feel they’re getting a fair return on their investment. The American Revolution occurred, in part, because of taxation without representation and the perception that the government wasn’t delivering what the people wanted. However, the Boston Tea Party was actually a protest over the King giving the East India Tea Company, a huge corporation in its day, a monopoly on the sale of tea in the colonies.

Paying taxes means that taxpayers have a personal stake in their government (aka skin in the game) and, therefore, in participating in democracy, in elections, and with their representatives in government. It’s everyone’s civic duty to make their contribution to democracy by paying their fair share of taxes and being engaged to have their say in the governing process. When governments are capable of and accountable for acting in the interests of the people (aka for the public good), this reinforces democracy and the connection between taxation and representation.

In the 1980s, the Republicans, President Reagan, and the American oligarchy (although we didn’t call them that at the time) promoted efforts to undermine the relationship among taxation, representation, and democracy. They pushed the notion that government wasn’t efficient, that taxes were bad, and that they could cut taxes and still deliver the public goods that people wanted. Basically, they promised a free lunch. They claimed their tax cuts, which disproportionately benefited wealthy individuals and corporations, would “trickle down” to everyone because the economy would boom. Actual experience, with multiple tax cuts over the last 45 years, has definitively shown that this does not happen. The results of their individual and corporate tax cuts have been sharply growing economic inequality and huge, monopolistic corporations.

High and growing economic inequality, along with the loss of economic security and upward mobility for working Americans, has bred discontent and distrust of government – and of democracy. This has opened the door for demagogues and acceptance of authoritarianism.

Throughout American history, oligarchs, from southern plantation owners to the robber barons to today’s corporate executives and investors (including private equity financiers), have worked to cut taxes and undermine a fair tax system. Not only does this make them wealthier, but it also undermines the power of government and democracy to stand up for the people and constrain the oligarchs’ power. If the government can’t and doesn’t deliver the public goods the public wants, the people won’t support it. Oligarchs want to shrink government, make it ineffective, and as one of them said, make it small enough to drown in a bathtub by starving it of the tax revenue it needs to get things done for the people. This undermines support for the government and faith in democracy, creating a reinforcing destructive cycle for government of, by, and for the people while cementing the oligarchs’ power.

Oligarchs want their power to be uncontested and unconstrained. They don’t want to be subject to government regulations or even the rule of law. They want to undermine the voice and representation of the people, as well as their faith in government and democracy. In addition to undermining a fair tax system, they use their wealth to effectively buy politicians and government policies. And they work to undermine voting and faith in elections.

My next post will discuss what a fair tax system would look like and what it will take to get there.

For lots of good news, see Jess Craven’s Chop Wood Carry Water blog’s most recent good news Sunday post here.

STANDING UP TO TRUMP AND CORPORATE OLIGARCHS

Oligarchy Definition A small group of people having formal and informal power based on (1)wealth; (2) connections; and (3) privilege.

American oligarchs have spent 45 years and billions of dollars undermining democracy and skewing government policy in their favor. We need to stand up and make Trump and corporate CEOs understand that the long-term success of their companies and our country depend on the trust and support of us, their customers and voters. We did this in a big way with the reaction to media executives pulling the Jimmy Kimmel show off the air. We need to do it again and again.

SPECIAL NOTE: We need millions of Americans at the No Kings protests on October 18 in defense of democracy. Please support this however you can. You can find an event near you here.

(Note: If you find a post too long to read, please just skim the bolded portions. Thanks for reading my blog!)

(Note: Please follow me and get notices of my blog posts on Bluesky at: @jalippitt.bsky.social. Thanks!)

American oligarchs, i.e., wealthy individuals and their large corporations, have spent at least the last 45 years undermining democracy and skewing government policy in their favor by: (See this previous post for more details.)

  • Increasing, coordinating, refining, and hiding their spending of billions of dollars on election campaigns. They spent over $10 billion in the 2023-24 federal election cycle alone.
  • Spending billions of dollars on lobbying the federal government, currently to the tune of $4 billion a year.
  • Moving tens of thousands of people through the revolving door between jobs in their corporations and in the government agencies that regulate them.

These efforts have been very successful; their return on investment has been extraordinary. Trump and his anti-democratic, authoritarian, and fascist administration are the culmination of this work that has undermined our democracy and skewed government policies and our economy to favor the oligarchs. Examples of skewed government policies include the following.

The individual income tax rates on oligarchs’ incomes have been cut from 70% in 1980 and 92% in the 1950s to 37% today. Income taxes on income from wealth, i.e., long-term capital gains, have been cut from 28% in 1980 to 15% in 2012 but are back up to 24% today. Note that the tax rate on income from wealth (i.e., unearned income) has always been much lower than the tax rate on income from work (i.e., earned income). This benefits the oligarchs and entrenches and exacerbates wealth inequality. Furthermore, increases in wealth that aren’t cashed in aren’t taxed at all. As a result, the richest billionaires pay about 3.4% in income tax on their incomes while the average American pays 14.5%.

Corporate income tax rates have also been cut from 46% in 1980 to 21% today. Moreover, tax loopholes allow corporations many strategies to avoid taxes. In particular, multi-national corporations artificially shift profits to foreign countries with very low taxes. Corporations have also been allowed to move jobs to low-wage countries and to resist and undermine workers’ unions. Roughly one out of every three private sector workers was a union member in the 1950s; today it’s one out of every 15. [1]

Antitrust laws have basically been unenforced for the last 45 years. As a result, many sectors of the American economy are dominated by a few, large, monopolistic corporations. Reduced competition means corporations can raise prices, cut quality, and strong-arm employees. Deregulation has left consumers vulnerable to poor products and frustrating services.

All of this has led to 45 years of dramatically growing income and wealth inequality. The 50% of Americans with the least wealth now, collectively, have only 2.5% of national wealth (less than $23,000 each on average). The wealthiest 1% of Americans own 33% of national wealth (about $15 million each on average). Pay for CEOs is now 1,094% higher than in 1978, while a typical workers’ pay has only increased 26%. As a result, the CEO-to-worker pay ratio grew from 31 times a typical worker’s pay in 1978 to 281 times in 2024. [2] And CEOs now believe that their only responsibility is to maximize returns for shareholders; other stakeholders, including workers, customers, and communities, are not a matter for concern.

The oligarch’s successful assault on our democracy and public policies has resulted in many Americans losing their economic security, as well as their trust in government and democracy. Many of them don’t feel it’s worth voting because they don’t believe it’s going to make any difference. They believe government is controlled by special interests working to benefit themselves. These Americans are angry and fearful about the future. Therefore, they are willing to believe the lies that Trump tells them about bringing back their good jobs and wages. And they are willing to overlook his undermining of democracy.

We, American consumers, need to make corporate CEOs understand that the long-term success of their companies depends on the trust and support of us, their customers. We did this in a big way with the reaction to media executives pulling the Jimmy Kimmel show off the air in response to President Trump’s displeasure with him. We’ll need to do this again and again to wake up CEOs and to get them to focus on the long-term instead of pleasing the would-be dictator in the White House in the short-term.

The spinelessness of corporate CEOs in the face of Trump makes it clear that they “are poorly suited to be custodians of democracy or counterweights to presidential overreach.” [3] “Capitalism is compatible with democracy only if democracy is in the driver’s seat. … [Otherwise] It fuels despotism.” [4]

We, the American public, consumers and workers, must stand up for democracy and for its regulation of corporations and capitalism. Otherwise, we’ll continue down the slippery slope to oligarchy, authoritarianism, and fascism. We can stop this slide, as we did in the Jimmy Kimmel case.

I look forward to seeing millions of Americans engaged in the No Kings protests on October 18 and in many, many other smaller protests daily. Thank you for all you’re doing! Please keep up this great and important work to save our democracy!

Find an October 18th No Kings event near you here and participate and support it in whatever way you can.

For lots of current good news see Jess Craven’s Chop Wood Carry Water blog here.

[1]      Economic Policy Institute, retrieved from the Internet 9/29/25, “State of Working America: Unions,” (https://data.epi.org/unions/union_members_historical/line/year/national/percent_union_members_historical/overall)

[2]      Gould, E., Bivens, J., & Kandra, J., 9/25/25, “CEO pay increased in 2024 and is now 281 times that of the typical worker,” Economic Policy Institute (https://www.epi.org/blog/ceo-pay-increased-in-2024-and-is-now-281-times-that-of-the-typical-worker-new-epi-landing-page-has-all-the-details/)

[3]      Edelman, L., 9/23/25, “Why corporate leaders are appeasing Trump,” The Boston Globe

[4]      Reich, R., 9/26/25, “Why are we so polarized? Why is democracy in such peril?” Blog post (https://robertreich.substack.com/p/why-are-we-so-polarized)

CORPORATE OLIGARCHS HAVE BEEN UNDERMINING DEMOCRACY FOR 45 YEARS

Trump is the culmination of decades of work by wealthy individuals and CEOs (America’s oligarchs) undermining democracy & skewing government policy. This has led to high income & wealth inequality. Many Americans have lost their economic security, as well as their faith in government & democracy.

Trump is the culmination of decades of work by wealthy individuals and corporate CEOs (i.e., America’s oligarchs) undermining democracy and skewing government policies. This has led to dramatic income and wealth inequality. Many Americans have lost their economic security, as well as their faith in government and democracy.

SPECIAL NOTE: We need millions of Americans at the No Kings protests on October 18 in defense of democracy. Please support this however you can. You can find an event near you at: https://www.mobilize.us/nokings/map/?tag_ids=27849.

(Note: If you find a post too long to read, please just skim the bolded portions. Thanks for reading my blog!)

(Note: Please follow me and get notices of my blog posts on Bluesky at: @jalippitt.bsky.social. Thanks!)

I’ve been surprised at how little spine corporate Chief Executive Officers (CEOs) (supposed “leaders”) have shown in the face of Trump’s behavior and attacks. They know that unpredictability and chaos in government, as well as uncertainty, polarization, and unrest in society (in America and globally), are bad for the economy and for their businesses, at least in the long run. They know that an autocrat’s lack of respect for the rule of law, for property rights, and for freedom of speech are bad for business.

However, the CEOs of large corporations (aka corporate oligarchs) tend to be pragmatic and short-sighted. They value having political power and influence to the point that they seem to care little about politicians’ ethics or actions on issues that don’t conflict with their corporate interests. They know their large corporations are dependent on the government for many things, e.g., approvals of mergers, government contracts, tax breaks and subsidies, and licenses to operate. And they know their corporations are affected by many other things government does, e.g., writing and enforcing regulations, tax laws, and export and import policies (e.g., tariffs). [1]

President Trump has been leveraging (generally illegally) these many interrelationships between the government and corporations to pressure CEOs to do what he wants them to do, to support his policies, and to support him personally (sometimes financially). CEOs know Trump is arbitrary, unpredictable, and vindictive. They know that if he is irritated by a company or its CEO that he will use the powers of the government in a punitive fashion against them. Therefore, they capitulate.

However, Trump and his anti-democratic, autocratic, and fascist behavior and administration are the culmination of decades of work by wealthy individuals and corporate CEOs (i.e., America’s oligarchs). They have been undermining democracy and skewing government policies and our economy in their favor for at least 45 years. They have quadrupled their political spending (after adjusting for inflation) over the last 40 years. [2] In the 2023-2024 federal election cycle, $5.3 billion was spent on the presidential race and $9.5 billion was spent on congressional races. The overwhelming majority of this money came from American oligarchs. One hundred billionaires alone spent $2.6 billion. The seven highest spending individuals spent $930 million, all for Republicans, with Elon Musk leading the way with $291 million in spending, almost exclusively for the Trump campaign.

In addition to spending on election campaigns, corporations are also spending over $4 billion a year lobbying the federal government. [3] Furthermore, they engage in an extensive “revolving door” cycle of personnel (tens of thousands of them) who move between government regulatory agencies and positions in corporations the agencies regulate. [4]

All of this is in the interest of skewing government policy to favor American oligarchs, i.e., wealthy individuals and their large corporations. They have been very successful; their return on investment has been extraordinary.

My next post will provide specific examples of their successes, along with the effects and implications of them.

In the meantime, please make plans to stand up for democracy and against the oligarchs. I hope you can participate in and/or support the No Kings protests on October 18 – and the many, many other smaller protests that are occurring daily. Thank you for all you are doing! Please keep up this great and important defense of democracy!

Find a No Kings October 18th event near you here.

[1]      Edelman, L., 9/23/25, “Why corporate leaders are appeasing Trump,” The Boston Globe

[2]      Reich, R., 9/26/25, “Why are we so polarized? Why is democracy in such peril?” Blog post (https://robertreich.substack.com/p/why-are-we-so-polarized)

[3]      Open Secrets, retrieved from the Internet 9/29/25, “Lobbying data summary,” (https://www.opensecrets.org/federal-lobbying/)

[4]      Open Secrets, retrieved from the Internet 9/29/25, “Revolving door overview,” (https://www.opensecrets.org/revolving-door/)

AMERICAN OLIGARCHS CAN’T STAY BEHIND THE CURTAIN

American oligarchs have tried to stay behind the curtain and to distract the public and the mainstream media from their schemes to get richer at the expense of the rest of us. The recent process of funding for the federal government opened the curtain a bit. The greed and power-lust of the oligarchs made their schemes hard to hide.

(Note: If you find my posts too long to read on occasion, please just skim the bolded portions. Thanks for reading my blog! Special Note: The new, more user-friendly website for my blog is here.)

As you probably know, Congress just passed a continuing resolution (CR) to fund the federal government for the next three months. The Republicans have made Congress so dysfunctional that is has been unable to pass a normal budget since Clinton was President. Instead, it passes continuing resolutions to fund the government for a relatively short period of time. CRs typically extend previous programs and spending levels without any significant changes. Often this process unfolds with significant drama as a shutdown of the government due to lack of funding looms.

On December 21, 2024, Congress again ran right up to the shutdown deadline before passing a three-month CR. An earlier version of the CR (which had the bipartisan support needed to pass) was scuttled at the last minute by oligarch Elon Musk (and then 13 hours later by president-elect Trump). Musk threatened to fund opposition to any member of Congress who voted for the painstakingly negotiated CR. [1] (Musk, as you probably know is the multi-multi-billionaire who largely funded Trump’s 2024 presidential campaign and that Trump has named to head the “Department of Government Efficiency” (DOGE). DOGE is not a real department, but rather a private advisory group. This means Musk has no accountability and is not covered by any of the ethics or disclosure laws that cover public employees.)

Musk’s opposition to the original CR was supposedly because it spent too much money. He falsely criticized it for including, among other things, a 40% pay raise for Congress (it’s actually 3.8%). However, good journalists have uncovered other motives for his opposition, in part by comparing the CR that finally passed with the one the Musk blocked.

The original CR included a provision that restricted American investments in technology businesses in China. This was a bipartisan measure targeted at keeping sensitive, national-security-related technology such as artificial intelligence (AI) and advanced “quantum” computing capability out of the hands of the Chinese government. However, Musk is investing in businesses in China and wants to build an AI data center there. This investment restriction would have limited Musk’s ability build and profit from his businesses in China. The provision was removed and was not in the final version of the CR that was passed. [2] [3]

Also not included in the final CR was a provision of the original version that would have reined in pharmacy benefit managers. These middlemen for drug sales were supposed to save consumers money but instead have figured out how to negotiate with drug makers and insurance companies to generate huge profits for themselves. (See this previous post for more details.)

Also dropped from the original CR were five provisions to tackle childhood cancer. Although at least some of this funding was approved in separate bills, there was widespread outrage that the victims of the first cuts to government spending driven by Musk were children with cancer.

These are examples of the things that were going on behind the curtain as Musk, Trump, and other Republicans were diverting everyone’s attention with a government funding crisis. This is how the oligarchs will wield their power – cutting funding for children with cancer and increasing what we pay for drugs while letting Musk and other billionaires make money investing in China while transferring sensitive technology there. This is how the rich get richer while the rest of us pay the costs and suffer the consequences. This is how oligarchy becomes a kleptocracy as the powerful use the government to take the public’s money and, directly or indirectly, put it in their own pockets.

This continuing resolution is just one small example of how this happens. More examples will be shared in future posts.

[1]      Cox Richardson, H., 12/21/24, “Letters from an American,” (https://heathercoxrichardson.substack.com/p/december-21-2024)

[2]      Dayen, D., 12/20/24, “The government is shutting down because Elon Musk has factories in China,” The American Prospect (https://prospect.org/politics/2024-12-20-government-shutting-down-elon-musk-factories-china/)

[3]      Kuttner, R., 12/21/24, “How Musk outmaneuvered Trump,” The American Prospect (https://prospect.org/politics/2024-12-21-how-musk-outmaneuvered-trump-government-funding-china/)