Funding Our Freedoms

Message from the Executive Director

Poll after poll shows the majority of Americans support taxing the rich. While these individual polls have been important indicators of public opinion over the years, we’ve aggregated these results into a systematic analysis to build an even stronger case for critical reforms of the American tax code.

This report makes clear that raising taxes on the rich is not only necessary—it’s popular! Taxing the wealthy is not a fringe idea, and despite the mantra that major tax reform does not have sufficient support, it is instead well supported by the American public.

This report compiles undeniable evidence that the American people are ready to rewrite the rules so nothing stands in the way of us providing a great life for our families. This is true across race, zip code, and even political affiliations. The six types of tax policy proposals discussed in this report are supported by a majority of Democrats and Independents, and quite a few Republicans.

The report illustrates how tax reform is the most promising tool we can wield in order to make sure each of us has the freedom to thrive by fixing the American economy so it works for everyone. We examined the billionaire tax, wealth tax, raising the top marginal tax rate, millionaire surtax, capital gains taxes, and the estate tax and related dynasty trust reform.

We’ve also created stand-alone summary sheets of each reform for use as a resource in your advocacy and education work.

In solidarity,
Gabriela Sandoval

Executive Summary

We examined six categories of tax reforms: the billionaire tax, wealth tax, raising the top marginal tax rate, millionaire surtax, capital gains taxes, and the estate tax and related dynasty trust reform. Each of these categories corresponds to actual legislation that has been proposed by members of Congress or the Presidential Administration in the recent past. Below are topline summaries of support for each category of tax reform. 

Billionaire Income Tax. The two forms of the billionaire income tax we examined garnered the most support out of all the reforms we analyzed and the most widespread support by party identification. On average, two out of three (67%) Americans supported the tax including 84% of Democrats, 64% of Independents, and 51% of Republicans. Overall, polls indicate there is bipartisan support for the billionaire income tax.

Wealth Tax. According to national polls, a wealth tax had similarly high levels of support to a billionaire income tax across all party lines. Overall, more than three out of five, or an average of 63% of Americans supported the tax, including 78% of Democrats, 62% of Independents, and 51% of Republicans.

State polls on the wealth tax sampled more moderate and conservative voters and show overall high levels of support with slightly less support from Independents and Republicans. State polls mirrored the results of the national polls with over three out of five, or an average of 63% supporting with 86% of Democrats, 60% of Independents, and 44% of Republicans supporting a wealth tax.

Raising the Top Marginal Tax Rate. Representative Alexandria Ocasio-Cortez’s 2019 proposal to raise the top marginal tax rate from 37% to 70% failed to garner majority support in the polls we analyzed. Overall, just under half, or an average of 48% of respondents favored this proposal with two out of three Democrats (67%), less than half (45%) of Independents, and one out of three (33%) Republicans supporting the reform.

Millionaire Surtax. The Millionaire surtax garnered high levels of support with over three out of five (61%) supporting overall and 84% of Democrats and 60% of Independents supporting. However, only 42% of Republicans supported it.

Capital Gains Tax. Poll questions on the two capital gains tax issues we examined– raising the top capital gains tax rate and taxing capital gains at death–are primarily state-based and too few to draw reliable conclusions. While these taxes are key to targeting concentrations of excessive wealth, they are also the most complicated for poll respondents to understand, potentially contributing to the lower support.

Based on the polls we analyzed, three out of five, or an average of 60% of respondents favored raising the top capital gains tax rate of 20% to match the top income tax rate currently 37%. Almost nine out of 10, or an average of 88% of Democrats, 57% of Independents, and 38% of Republicans support this reform.

Additionally, an average of 46% of respondents supported a capital gains tax at death. An average of 70% of Democrats, 45% of Independents, and 26% of Republicans. This reform ends the ability of heirs to avoid paying capital gains taxes on the value of assets that are left to them at the time of the benefactor’s death. This proposal is also known as ending “stepped-up basis”.

Estate Tax and Dynasty Trusts. A 2021 reform proposed by Senator Bernie Sanders and Representative Jimmy Gomez fared well in limited polling. Support for their proposal to lower the threshold for taxing estates from $11 million to $3.5 million was supported overall by more than one of every two respondents (55%). An average of 81% of Democrats, 49% of Independents, and 36% of Republicans supported the proposal.

Additionally, there has been no major effort in Congress to reform dynasty trusts but limited polling shows it fared similarly to the estate tax proposal with an average of 56% of respondents in favor of eliminating the use of dynasty trusts on very large estates. An average of 82% of Democrats, 55% of Independents, and 36% of Republicans supported the reform.

Hibba Meraay

Research Lead (She/Her)