A rising gap in income and wealth in the United States is underscored by New York City’s high average income and the ultra-rich’s wealth concentration, which threatens social cohesion and democracy and calls for collective action to reform taxes.

The piece is written from an expert, policy-driven perspective, with authors Joseph E. Stiglitz, Zohran Mamdani, and Gabriel Zucman guiding the tax reform argument.

The tax burden on the wealthiest has shrunk over decades, from roughly 50% in the 1960s to about 24% today, a pattern echoed by similar gaps across Europe and Brazil, signaling a systemic tax contribution issue.

Policy ideas center on progressive reform, including a minimum tax on ultra-high-net-worth wealth, with momentum from the G20 and recent measures in Spain, Brazil, France, California’s wealth tax proposal, Washington state’s planned 9.9% tax on high incomes, and New York’s pied-a-terre levy.

The reform justification rests on wealth’s political and economic power concentration, arguing taxes should reflect societal benefits from public goods that enable wealth creation.

The call to action emphasizes feasibility and urgency, urging broad collaboration to ensure the ultra-wealthy pay a fair share for essential public services and reduced inequality.

Evidence of widening inequality includes New York City’s average household income around $131,000 and data showing the richest 1% captured 41% of new wealth from 2000 to 2024, while the bottom half gained only 1%.