A new book titled The Everywhere Millionaire by economists Eric Zwick and Owen Zidar reveals that America’s wealth is largely shaped not just by tech billionaires, but by a vast network of Main Street business owners. These individuals control more collective wealth than the famous billionaires who make headlines. Operating in everyday industries like car dealerships, medical practices, and restaurants, these millions of private business owners generate massive incomes that have fueled the rise of the top one percent since the 1980s. The authors spent over a decade analyzing U.S. Treasury and tax data to uncover how pass-through businesses transformed the American economic landscape. Unlike traditional corporations, pass-through entities allow business profits to flow directly to individual owners, who then pay taxes at personal income rates. This structural shift, accelerated by the Tax Reform Act of 1986, created significant tax advantages for successful entrepreneurs and professionals. Zwick and Zidar discovered that many of these wealth creators are not passive investors, but skilled service providers such as doctors, lawyers, consultants, and auto dealers. While some success stories stem from hard work and ingenuity, the book also highlights how certain industries benefit from government regulations that restrict competition and protect incumbent profits. Furthermore, these Main Street millionaires wield substantial political influence, frequently serving in local, state, and federal legislatures where they can impact tax policy and business regulations. Despite their massive collective net worth and political clout, these stealthy wealthy Americans have largely remained absent from the mainstream economic conversation, making them a crucial group to understand when examining modern wealth inequality.
Source: npr.org
