Americans Support Government Action To Reduce Wealth Gap

Americans Support Government Action To Reduce Wealth Gap

Jonathan Draeger

The top 10% in America own 67.4% of the nation’s wealth and 87% of its stocks and mutual funds, according to data from the Federal Reserve. Recent polling indicates that Americans are dissatisfied with the concentration of wealth and want the government to reduce the wealth gap.

In its Jan. 2–5 poll, The Economist asked respondents whether the federal government should pursue policies to reduce the wealth gap between the richest and poorest Americans. A majority (59%) said it should, while only 21% said it should not. A larger share, 80%, said the gap between the rich and the poor is a very big or somewhat big problem.

To reduce the wealth gap, the vast majority also believe taxes should be raised on billionaires. While only 23% said taxes on billionaires are too high or about right, 62% said taxes on billionaires are too low.

Americans don’t just want higher taxes for the top .01%. In a previous Economist poll from Dec. 26–29, 62% supported increasing taxes on families earning more than $250k annually, while only 24% opposed it. Households making more than $250k annually are in the top 10% of earners and currently pay around 34% in taxes, depending on the state.

These additional taxes would be needed if Americans’ opinions determined government spending. According to the December poll, every program suggested, including Social Security, national defense, Medicaid, the environment, and others, had more respondents wanting increased funding than decreased funding, except for foreign aid, where only 19% favored increased foreign aid funding, whereas 47% favored decreased funding.

The poll also found that perhaps the loudest voice calling for taxing the rich, Bernie Sanders, had a +1 net favorability rating, while others, such as President Trump, were underwater at -16.

These concerns arise because a majority of Americans do not believe the economy is headed in a positive direction. While Trump has touted strong topline economic numbers, such as 4.3% growth in the third quarter of 2025, 2.7% CPI-measured year-over-year inflation in November, and a 4.4% unemployment rate, other indicators still leave many Americans feeling economically insecure.

The January poll found that 43% reported it would be somewhat difficult or very difficult to pay an unexpected $1,000 expense, whereas only 39% reported it would be very or somewhat easy. Only 13% said they thought children today would grow up to be financially better off than their parents, while 54% predicted the children will be worse off.

To address these affordability concerns, which consistently rank as the most important issue for Americans, Trump has, in recent weeks, released a series of policies targeting major financial corporations. These include limiting credit card interest rates to 10% per year, banning institutional investors from buying single-family homes, and purchasing $200 billion in mortgage bonds to reduce mortgage interest rates.

These measures are aimed at lowering cost burdens, which are especially high for housing. When asked nationally how difficult it is for families to find a house they can afford, only 10% said it is very or somewhat easy, while 79% said it is somewhat or very difficult. Over the past year, 73% reported that housing costs, such as mortgage payments and rents, have increased, while only 4% reported that they have decreased. This perception is bipartisan, with 63% of Republicans also saying housing costs have risen.

Whether Trump’s measures can reduce these costs remains to be seen. Their effectiveness may help determine the midterm elections, because without a significant improvement in perceptions of the economy and affordability, Democrats appear on track to retake the House and pick up several Senate seats.