The survival of American democracy depends on taxing billionaires

The article argues that taxing billionaires is vital to funding public services and restoring a sense of fairness, which it sees as important to the health of American democracy. It says extreme wealth gives a small group outsized influence while making it difficult for governments to tax their resources.

The richest 1% of Americans hold more than 31% of the country’s wealth, estimated at $55 trillion. A study cited in the article found that 384 of the wealthiest people paid 24% of their economic income in 2025, compared with 30% for the average taxpayer. California voters are due to consider Proposition 40, a one-off 5% tax on billionaires resident in the state on 1 January 2026; based on 260 billionaires and nearly $2.5 trillion in wealth, it could raise about $110 billion. Critics, including Governor Gavin Newsom, warn that a wealth tax could prompt billionaires to leave, though the article notes California’s billionaire population grew by 20% between January and October.