Income equality

Architects of Elizabeth Warren wealth tax say we're in new Gilded Age

In an interview with Axios' Mike Allen for "Axios on HBO," economists Emmanuel Saez and Gabriel Zucman, who helped guide Democrat Sen. Elizabeth Warren's 2020 wealth tax plan, said America has entered a new Gilded Age.

The big picture: Warren's "ultra-millionaire tax" is one of the most progressive tax plans on the Democratic market. It aims to adjust rates so that the rich are not paying less, proportionately, in taxes than the wealthy. Opponents of the plan argue it would de-incentivize investments and stifle economic growth.

The striking upward mobility gap between black and white men

Reproduced from Chetty, et. al, 2018, "Race and Economic Opportunity in the United States: An Intergenerational Perspective"; Note: Location based on where men grew up; Map: Axios Visuals

The fastest-growing cities in the U.S. may be adding lots of jobs for well-off people, but many have low rates of upward mobility for lower-income kids growing up there. And it's especially bleak for black males, according to Raj Chetty, Harvard economics professor and director of Opportunity Insights, a research and policy organization.

Why it matters: The extent of racial disparities and economic mobility "is so extreme in the U.S. that it's almost like they're two Americas," Chetty said about the maps above.