Core Insights - The disparity in tax burdens between high earners and billionaires highlights structural inequities in the American tax system [2] Taxation of High Salaries - Individuals earning $600,000 face ordinary income tax rates, with the top federal marginal rate at 37%, but they would be taxed at 35% [3] - When considering additional taxes such as the 3.8% Medicare tax, state income taxes (up to 13% in California and 10% in New York), and payroll taxes, the combined tax rates can exceed 50% for high earners in states with high taxes [4] - Wage earners have limited options to reduce their tax burden, as their salary is taxed immediately upon receipt [5] Wealth Accumulation of Billionaires - Billionaires like Elon Musk primarily accumulate wealth through the appreciation of stock rather than salaries, allowing them to avoid immediate taxation on unrealized gains [6] - Current U.S. law does not tax unrealized capital gains, benefiting the ultra-wealthy who derive most of their wealth from appreciating assets [7] Capital Gains Taxation - When billionaires sell assets and realize gains, they are subject to capital gains tax rates of 0%, 15%, or 20%, which are significantly lower than the ordinary income tax rates faced by high-income wage earners [8]