Red sign hanging at the glass door of a shop says, "Closed due to coronavirus." (Photo: Getty Images)
Jul 15, 2020
A new study out Wednesday shows that billionaires around the U.S. have added to their wealth in the months since the coronavirus pandemic began in March at levels exceeding budget shortfalls due to the economic crisis triggered by the outbreak in 23 states.
"This analysis shows how out of whack our economy has become with handfuls of billionaires in some states experiencing skyrocketing wealth growth that even exceeds the huge state revenue gaps that have opened up due to the coronavirus," said Frank Clemente, executive director of Americans for Tax Fairness, which announced the findings for Tax Day.
\u201cBillionaire wealth is booming during the pandemic while states are drowning in red ink.\n\nShort term: The Senate must pass the HEROES Act to keep healthcare, education, housing, transportation and other public services flowing.\n\nAfter that: Make billionaires pay their fair share.\u201d— Americans For Tax Fairness (@Americans For Tax Fairness) 1594817946
The analysis details the numbers behind billionaire wealth increases and budget shortfalls:
California's 154 billionaires saw their collective net worth leap $175 billion between March 18 and June 17, three months later. (March 18 is roughly when the coronavirus shutdown began and the date that Forbes published its annual report on the wealth of billionaires.) That's almost double the Golden State's budget gap over the next two years, estimated to be somewhere between $89 billion and $95 billion. Similarly, New York's billionaire class grew $77 billion wealthier during the "pandemic spring," a bonanza almost six times the size of the projected $13.3 billion gap in the state's budget for the fiscal year that began July 1.
As Common Dreams reported on July 7, every state but Vermont is consitutionally or statutorially banned from running a deficit, necessitating cuts when revenues are below spending projections.
Economic Policy Institute reseracher Josh Bivens told Common Dreams that budget cuts in the context of the pandemic-triggered recession are a recipe for economic disaster.
"We have noted estimates of the state and local shortfalls between now and the end of 2021 hover around $1 trillion," said Bivens, "and if we do nothing to close that gap, we'll end 2021 with roughly 5 million fewer jobs in the U.S. economy than we otherwise would have had."
Bivens added that federal aid and taxing the rich are solutions that would work to ease the financial strain on state budgets, a point that Americans for Tax Fairness' Clemente agreed with.
"A few very wealthy people in states are doing really well, while millions suffer," said Clemente. "If there ever was a wake-up call to make the rich start paying their fair share of taxes this is it."
An Unconstitutional Rampage
Trump and Musk are on an unconstitutional rampage, aiming for virtually every corner of the federal government. These two right-wing billionaires are targeting nurses, scientists, teachers, daycare providers, judges, veterans, air traffic controllers, and nuclear safety inspectors. No one is safe. The food stamps program, Social Security, Medicare, and Medicaid are next. It’s an unprecedented disaster and a five-alarm fire, but there will be a reckoning. The people did not vote for this. The American people do not want this dystopian hellscape that hides behind claims of “efficiency.” Still, in reality, it is all a giveaway to corporate interests and the libertarian dreams of far-right oligarchs like Musk. Common Dreams is playing a vital role by reporting day and night on this orgy of corruption and greed, as well as what everyday people can do to organize and fight back. As a people-powered nonprofit news outlet, we cover issues the corporate media never will, but we can only continue with our readers’ support. |
Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.
A new study out Wednesday shows that billionaires around the U.S. have added to their wealth in the months since the coronavirus pandemic began in March at levels exceeding budget shortfalls due to the economic crisis triggered by the outbreak in 23 states.
"This analysis shows how out of whack our economy has become with handfuls of billionaires in some states experiencing skyrocketing wealth growth that even exceeds the huge state revenue gaps that have opened up due to the coronavirus," said Frank Clemente, executive director of Americans for Tax Fairness, which announced the findings for Tax Day.
\u201cBillionaire wealth is booming during the pandemic while states are drowning in red ink.\n\nShort term: The Senate must pass the HEROES Act to keep healthcare, education, housing, transportation and other public services flowing.\n\nAfter that: Make billionaires pay their fair share.\u201d— Americans For Tax Fairness (@Americans For Tax Fairness) 1594817946
The analysis details the numbers behind billionaire wealth increases and budget shortfalls:
California's 154 billionaires saw their collective net worth leap $175 billion between March 18 and June 17, three months later. (March 18 is roughly when the coronavirus shutdown began and the date that Forbes published its annual report on the wealth of billionaires.) That's almost double the Golden State's budget gap over the next two years, estimated to be somewhere between $89 billion and $95 billion. Similarly, New York's billionaire class grew $77 billion wealthier during the "pandemic spring," a bonanza almost six times the size of the projected $13.3 billion gap in the state's budget for the fiscal year that began July 1.
As Common Dreams reported on July 7, every state but Vermont is consitutionally or statutorially banned from running a deficit, necessitating cuts when revenues are below spending projections.
Economic Policy Institute reseracher Josh Bivens told Common Dreams that budget cuts in the context of the pandemic-triggered recession are a recipe for economic disaster.
"We have noted estimates of the state and local shortfalls between now and the end of 2021 hover around $1 trillion," said Bivens, "and if we do nothing to close that gap, we'll end 2021 with roughly 5 million fewer jobs in the U.S. economy than we otherwise would have had."
Bivens added that federal aid and taxing the rich are solutions that would work to ease the financial strain on state budgets, a point that Americans for Tax Fairness' Clemente agreed with.
"A few very wealthy people in states are doing really well, while millions suffer," said Clemente. "If there ever was a wake-up call to make the rich start paying their fair share of taxes this is it."
A new study out Wednesday shows that billionaires around the U.S. have added to their wealth in the months since the coronavirus pandemic began in March at levels exceeding budget shortfalls due to the economic crisis triggered by the outbreak in 23 states.
"This analysis shows how out of whack our economy has become with handfuls of billionaires in some states experiencing skyrocketing wealth growth that even exceeds the huge state revenue gaps that have opened up due to the coronavirus," said Frank Clemente, executive director of Americans for Tax Fairness, which announced the findings for Tax Day.
\u201cBillionaire wealth is booming during the pandemic while states are drowning in red ink.\n\nShort term: The Senate must pass the HEROES Act to keep healthcare, education, housing, transportation and other public services flowing.\n\nAfter that: Make billionaires pay their fair share.\u201d— Americans For Tax Fairness (@Americans For Tax Fairness) 1594817946
The analysis details the numbers behind billionaire wealth increases and budget shortfalls:
California's 154 billionaires saw their collective net worth leap $175 billion between March 18 and June 17, three months later. (March 18 is roughly when the coronavirus shutdown began and the date that Forbes published its annual report on the wealth of billionaires.) That's almost double the Golden State's budget gap over the next two years, estimated to be somewhere between $89 billion and $95 billion. Similarly, New York's billionaire class grew $77 billion wealthier during the "pandemic spring," a bonanza almost six times the size of the projected $13.3 billion gap in the state's budget for the fiscal year that began July 1.
As Common Dreams reported on July 7, every state but Vermont is consitutionally or statutorially banned from running a deficit, necessitating cuts when revenues are below spending projections.
Economic Policy Institute reseracher Josh Bivens told Common Dreams that budget cuts in the context of the pandemic-triggered recession are a recipe for economic disaster.
"We have noted estimates of the state and local shortfalls between now and the end of 2021 hover around $1 trillion," said Bivens, "and if we do nothing to close that gap, we'll end 2021 with roughly 5 million fewer jobs in the U.S. economy than we otherwise would have had."
Bivens added that federal aid and taxing the rich are solutions that would work to ease the financial strain on state budgets, a point that Americans for Tax Fairness' Clemente agreed with.
"A few very wealthy people in states are doing really well, while millions suffer," said Clemente. "If there ever was a wake-up call to make the rich start paying their fair share of taxes this is it."
We've had enough. The 1% own and operate the corporate media. They are doing everything they can to defend the status quo, squash dissent and protect the wealthy and the powerful. The Common Dreams media model is different. We cover the news that matters to the 99%. Our mission? To inform. To inspire. To ignite change for the common good. How? Nonprofit. Independent. Reader-supported. Free to read. Free to republish. Free to share. With no advertising. No paywalls. No selling of your data. Thousands of small donations fund our newsroom and allow us to continue publishing. Can you chip in? We can't do it without you. Thank you.