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Zohran Mamdani’s historic victory for the working class in the financial capital of the world is a reflection of the growing appeal of bold platforms that attack extreme inequality and oligarchy and move toward a more equitable and just society. Inequality, to be sure, is one of the biggest social problems facing many countries across the globe. The gap between haves and have-nots has grown to such extreme levels that it threatens social stability by undermining both democratic governance and economic sustainability. And how could it be otherwise when the richest 1 percent own more wealth than 95 percent of humanity? In the United States, a country with wealth disparities greater than all other major developed nations, the richest 1 percent holds approximately 31 percent of the nation’s total wealth while the top 50 percent owns 98 percent of the total share of U.S. wealth.

In the light of this deeply disturbing data, it is hardly surprising that there is a proliferation of voices calling for the implementation of measures to reduce economic inequality. In France, the so-called Zucman tax proposal has become the hottest topic in the country, and although lawmakers in France’s lower house have just rejected multiple proposals for taxing the ultra-rich, the fight is not over. In the United States, a group of Democrats in Congress has recently introduced the Billionaires Income Tax Act, and labor and health groups in California have proposed a 5 percent wealth tax on the state’s billionaires to offset billions in federal funding cuts to healthcare. As further evidence of the political traction that the demand to tax the ultra-rich is gaining, Illinois lawmakers have proposed a one-time 4.95 percent tax on residents who hold paper assets with net worth exceeding $1 billion.

Be that as it may, and assuming that wealth tax proposals are politically viable and can withstand the challenges posed to them by the ruling and oligarch class and its various allies, are they sufficient enough to reduce the stunning levels of inequality in today’s world or do we need to abolish extreme wealth altogether? Moreover, what does the structure of the U.S. tax system reveal about class warfare and does it tell us anything about the current government shutdown? Renowned socialist and feminist economist Nancy Folbre shares her insights into these and other critical questions on the political efforts to tax the top and their economic ramifications. Folbre is professor emerita of economics and director of the Program on Gender and Care Work at the Political Economy Research Institute (PERI) at the University of Massachusetts Amherst.

C.J. Polychroniou: Across the world, proposals to tax the ultra-rich in order to tackle soaring inequality are gaining momentum. Indeed, many options have been put on the table, ranging from new taxes on capital income and higher income tax rates to a global wealth tax. Why is taxing the ultra-rich considered to be of such critical importance given that inequality is part of the foundation of capitalist economies? Will it actually close the wealth gap?

Nancy Folbre: I’m not sure that such proposals are gaining momentum, but........

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