Politicians and the media focus on the inequality of income in the U.S. Some advocate a tax increase of a few percentage points on the "wealthy," which means anyone earning more than $200,000, or $1 million, or even more, depending on which politician and which proposal. But for all the time and money spent arguing about this, raising tax rates will have virtually no impact on inequality.
This is a meaningless waste of time.
The real wealth inequality is not income, but ownership.
The top 1% own 70% of all financial assets in the U.S. The bottom 80% own about 7% of these assets. This is the major cause of income inequality, as well, because the rich live off the income generated by their assets, including capital gains that are taxed at a lower rate than "earned" income.
A closer look reveals the scope of this problem.
The 400 richest Americans own $1.57 trillion, which is more than the combined net worth of 155,000,000 other Americans.
Once we cancel all debts (up to $300,000), and then inventory and allocate all of this wealth--the heritage of all Americans--on a per capita basis, every American will enjoy these benefits:
Free health care for every citizen
Paid-for home for every family
Low tax rates for all citizens
Elimination of poverty and most crime
The economy will grow rapidly as both demand and supply increase in response to a more equitable distribution of wealth. Entrepreneurs will remain free to invent new technology, create companies and jobs, and earn as much money as they want, all at lower tax rates. Those who seek to serve the public, including teachers, first responders, and social workers, will be able to live in dignity despite the relatively low wages these professions generate.
In other words, all citizens will be free to do the jobs they love and are the best at, which will improve the well-being of all of society.
The total net worth of American households is around 60 trillion. There are about 220 million adult citizens. This means that each adult citizen, on average, will be allocated between $200,000 and $500,000 worth of wealth, in addition to the benefits outlined above.
None of this is communism or socialism or anything of the sort. Post-Equalization, every citizen will remain free to pursue whatever education, job, and lifestyle the citizen desires, without compulsion. The economic system will remain capitalism. In fact, all the advantages of capitalism will be enhanced through lower income tax rates and more productive use of existing capital. The overall wealth of the entire nation will jump substantially.