The Ultrawealthy Are Sitting On $8.5 Trillion In Untaxed 2022 Profits: Report
Share- Nishadil
- January 05, 2024
- 0 Comments
- 4 minutes read
- 14 Views

Private jets are seen at Friedman Memorial Airport ahead of an exclusive finance and technology conference in Sun Valley, Idaho. Kevin Dietsch via Getty Images Americans worth more than $100 million sat on a whopping $8.5 trillion in untaxed profits in 2022, a report released Wednesday found — money that may never be taxed unless Congress closes a loophole shielding the investments of the ultrarich.
These centimillionaires and billionaires made up just 0.05% of all American households in 2022, according to Federal Reserve data analyzed by the progressive nonprofit Americans for Tax Fairness. But they held one sixth of so called unrealized capital gains in the country. Advertisement Unrealized gains are the primary source of income for many elite families.
Under current law, growth in the value of assets like stocks, bonds, investments, real estate or businesses is not taxable until they are “realized,” or sold. The ultrawealthy can nonetheless live off these gains by taking out low interest loans against their exorbitant wealth. And when their fortunes become inheritances, the gains are no longer taxable.
“The superrich truly live in a strange and privileged world,” said David Kass, the executive director of Americans for Tax Fairness. While most households depend on paychecks — “income that is taxed all year, every year,” Kass noted — these untaxed gains make up the largest single source of income for the ultrawealthy.
“The scandal of tax free billionaires,” Kass added, also results in billions of dollars less in tax revenue that could fund health care, housing, education and other public programs. Led by President Joe Biden, Sen. Ron Wyden (D Ore.) and Reps. Steve Cohen (D Tenn.) and Don Beyer (D Va.) have introduced a “Billionaires Income Tax” in both chambers of Congress.
The tax would apply only to unrealized gains held by ultrawealthy households, and could generate an estimated $500 billion in new revenue over a decade. Advertisement Biden has also proposed ending the loophole, known as the stepped up basis, that erases capital gains for tax purposes when wealthy individuals pass on their fortunes as inheritance.
Both plans have virtually no support among Republicans. Without congressional action, the untouchable wealth of the superrich is likely to only grow. Since 1989, when the Federal Reserve began collecting this data, households worth more than $100 million have nearly tripled their share of the country’s unrealized gains.
The disparity in how the incomes of the superrich are taxed also deepens racial divides. Of the $8.5 trillion in untaxed wealth belonging to centimillionaires and billionaires, $7.6 trillion, or almost 90%, is held by white households. That figure is six times the total wealth of all Black households in the country, and five times the total wealth of all Hispanic households.
Support HuffPost The Stakes Have Never Been Higher At HuffPost, we believe that everyone needs high quality journalism, but we understand that not everyone can afford to pay for expensive news subscriptions. That is why we are committed to providing deeply reported, carefully fact checked news that is freely accessible to everyone.
Our News, Politics and Culture teams invest time and care working on hard hitting investigations and researched analyses, along with quick but robust daily takes. Our Life, Health and Shopping desks provide you with well researched, expert vetted information you need to live your best life, while HuffPost Personal, Voices and Opinion center real stories from real people.
Help keep news free for everyone by giving us as little as $1. Your contribution will go a long way. At HuffPost, we believe that everyone needs high quality journalism, but we understand that not everyone can afford to pay for expensive news subscriptions. That is why we are committed to providing deeply reported, carefully fact checked news that is freely accessible to everyone.
Help keep news free for everyone by giving us as little as $1. Your contribution will go a long way. As the 2024 presidential race heats up, the very foundations of our democracy are at stake. A vibrant democracy is impossible without well informed citizens. This is why HuffPost's journalism is free for everyone, not just those who can afford expensive paywalls.
We cannot do this without your help. Support our newsroom by contributing as little as $1 a month. As the 2024 presidential race heats up, the very foundations of our democracy are at stake. At HuffPost, we believe that a vibrant democracy is impossible without well informed citizens. This is why we keep our journalism free for everyone, even as most other newsrooms have retreated behind expensive paywalls.
Our newsroom continues to bring you hard hitting investigations, well researched analysis and timely takes on one of the most consequential elections in recent history. Reporting on the current political climate is a responsibility we do not take lightly — and we need your help. Support our newsroom by contributing as little as $1 a month.
Support HuffPost Related Joe Biden Taxes Billionaires LEAVE A COMMENT Molly Redden Senior Politics Reporter, HuffPost Suggest a correction Do you have info to share with HuffPost reporters? Here’s how. Go to Homepage Popular in the Community FROM OUR PARTNER.
Disclaimer: This article was generated in part using artificial intelligence and may contain errors or omissions. The content is provided for informational purposes only and does not constitute professional advice. We makes no representations or warranties regarding its accuracy, completeness, or reliability. Readers are advised to verify the information independently before relying on