Wealth Bias

The Wealth Bias:

The US government has favored the wealthy and corporations over the last 45 years.

Executive Summary

Several structural and policy shifts since 1981 have increased the ability of wealthy individuals and corporations to influence elected officials. From campaign finance deregulation to tax policy shifts, the wealthy have accumulated more resources and more legal pathways to use those resources to shape elections and policy. This is one reason inequality widened while middle-class political influence waned in that period.

Major Changes Since 1981

Campaign Finance Deregulation
- The 1976 Buckley v. Valeo decision and especially the 2010 Citizens United v. FEC ruling loosened restrictions on political spending.
- Wealthy donors and corporations gained new avenues to spend unlimited sums through PACs and Super PACs.
Decline of Labor Unions
- In 1980, about 20% of U.S. workers were unionized; today it’s closer to 10%.
- Unions once acted as a counterweight to corporate political power, funding candidates and lobbying for middle-class interests.
Tax Policy Shifts
- Top marginal tax rates fell from 70% in 1980 to around 37% today
  pay off deficit 1%
- Capital gains and corporate tax rates also dropped, concentrating wealth and resources that could be deployed politically.
Growth of Lobbying and the “Revolving Door”
- Corporate lobbying expenditures have surged into the billions annually.
- Former politicians and regulators often move into lobbying, reinforcing elite access.
Financialization of the Economy
- Since the 1980s, Wall Street and large asset managers (hedge funds, private equity, multinational banks) have gained outsized influence.
- Their concentrated wealth translates into concentrated political leverage.
Media Consolidation
- Fewer corporations now control most major news outlets.
- Wealthy owners and advertisers have more indirect influence over the political narrative.
Globalization and Outsourcing
- Corporate leaders leveraged threats of offshoring jobs to influence policy on taxes, trade, and regulation.
- This reduced bargaining power for average workers while strengthening the leverage of capital owners.
Supreme Court and Judicial Trends
- Court rulings over the last four decades have generally expanded property rights and corporate political rights while narrowing campaign finance limits.

Income Growth Comparison

This graph illustrates how the incomes of the wealthy have skyrocketed since 1981 while the incomes of the rest of us have not. The cumulative inflation rate from 1981 to 2018 was 177%. The graph shows that the incomes of the lower 99% did not even keep pace with inflation.

Growth in Inequality

The GINI index is used to measure income inequality. In 1980, the index reached its lowest level. Since then income inequality in the US has steadily grown in the last 45 years.

Tax Rates

This graph shows how much less taxes the wealthy paid 2025 versus what they paid in 1980 and 1950. For instance in 1950, the top 0.1% had an effective tax rate of about 55%. In 1980 their effective rate had declined to about 38%. In 2025, their effective rate was about 26%, a rate lower than the middle class was paying.

Page updated

Google Sites

Report abuse