Musk’s takeover of Twitter will affect millions of people both here at home and around the globe. The platform has no fewer than
450 million monthly active users and is one of the world’s most popular communication mediums. Other
expected changes that Musk could make to Twitter — most notably, lifting the account suspensions of former
President Trump and other high-profile, right-wing figures — will have huge ramifications in the age of misinformation.
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Billionaires certainly use their wealth to purchase private power in these ways but, critically, they also use it to purchase
public power. Since the 2010
Citizens United v. Federal Election Commission Supreme Court decision, billionaires have come to dominate the campaign finance scene in America to an astounding degree. They spent a whopping
$881 million in this year’s midterm elections — 44 percent more than they did in the last midterm cycle in 2018. In the 2020 elections, billionaires contributed almost
1 out of every 10 dollars received by federal campaigns, with the
top 20 combined spending over
$2.3 billion, or more than twice as much as the entire Biden campaign.
Their political investments have certainly paid off, as
public policy outcomes have come to almost exclusively reflect the interests and preferences of wealthy Americans. We can see this in many different policy areas, but nowhere more so than in the tax code. Today, billionaires pay much lower effective tax rates than everyday Americans who work for a living. Between 2014 and 2018, the
richest 25 billionaires paid an average effective tax rate of just 3.4 percent on over $400 billion in gains while the average American pays
13.3 percent.
And if that wasn’t enough, billionaires can, incredibly, sometimes get away with paying nothing at all in taxes, like Elon Musk did in 2018.
Unchecked billionaire wealth and power is a veritable crisis facing America today. It is unhealthy to live in a society where a few billionaires like Musk dictate how we go about living virtually every aspect of our day-to-day lives. Change needs to happen, and it needs to happen fast.
As of now, the best path forward to solving this crisis lies in taxing the rich. We certainly need to reform our campaign finance system to dilute the influence of big money, and we also need to safeguard our private institutions from being overwhelmed by billionaires’ voices and demands. At the very least, however, we need to take steps to strip billionaires of the resources — i.e. their extreme wealth — that enable their power in the first place by taxing them more.
Howard Klein is the former president of Reprise Records. He is a cofounder of Blue America PAC and a member of the Patriotic Millionaires.
Progressive Jealousy at its finest