There's a Mind-Boggling Number of Rich People in America

Pass-through business entities, often mischaracterized as small "mom and pop" shops, represent a significant and overlooked driver of U.S. wealth inequality. Economists Owen Zidar and Eric Zwick, authors of *The Everywhere Millionaire*, reveal that these entities—ranging from auto dealerships and beverage distributors to dental practices—account for a massive share of income growth among the top one percent. Unlike the concentrated wealth of tech billionaires, this "fat layer" of millionaires often operates in unglamorous, regional industries protected by regulatory barriers and franchise laws. The tax code currently incentivizes this structure, allowing successful business owners to pay lower effective rates than salaried professionals. By analyzing previously disconnected IRS data and yacht registries, Zidar and Zwick demonstrate that these private business owners, rather than just public company CEOs, are central to understanding the modern American economy and its distribution of prosperity.