The Great Tax Illusion
One of the most successful illusions ever sold to the American public is the idea that the rich pay taxes. They don’t—not in the way working people do, and not in proportion to what they take out of the system.
Even Mitt Romney, no socialist firebrand, recently let the truth slip. In a candid moment reported in The New York Times, Romney acknowledged what everyone inside the club already knows: the wealthy use perfectly legal schemes—carried interest, offshore shelters, trust loopholes, asset borrowing, stepped-up basis—to avoid paying meaningful taxes. They don’t earn income; they own assets. And assets, in America, are sacred.
This isn’t new. What’s new is how naked the system has become.
We are not drifting toward feudalism—we are returning to it.
In a modern feudal economy, wealth doesn’t come from work. It comes from ownership. The lords own the land (now stocks, real estate, data, and platforms), and the peasants rent their lives back one paycheck at a time. Most Americans today are serfs in all but name: one medical emergency from ruin, one layoff from homelessness, drowning in debt while being told the stock market is “doing great.”
And presiding over this mess is Donald Trump, the head circus clown, whose job is not to govern but to distract. While wealth concentrates upward at a pace unseen since the Gilded Age, Trump keeps his followers buzzing with lies, conspiracies, and culture-war nonsense. MAGA doesn’t question power—it worships it. The anger that should be aimed upward is redirected sideways and downward, toward immigrants, teachers, librarians, journalists, and anyone without money or influence.
This is how oligarchy survives.
Romney warns that the world is on the edge of a cliff. He’s right, though he stops short of naming the obvious cause: extreme wealth concentration paired with political capture. When billionaires don’t pay taxes, democracy collapses into a pay-to-play charade. Roads crumble, schools decay, healthcare becomes a luxury, and the public is told there’s “no money”—while fortunes grow untouched.
The solution is not complicated. It can be stated in three words:
Tax the rich.
Not slogans. Not symbolic gestures. Real taxes on real wealth. Close the loopholes. End the fantasy that borrowed-against wealth isn’t income. Restore progressive taxation that once built the American middle class instead of hollowing it out.
And let’s be clear about one thing: you are not rich.
If you think you are because you own a house, have a retirement account, or make six figures, you’ve swallowed the illusion whole. Unless you control hundreds of millions—assets that generate power, not paychecks—you are not in the club. You are one illness, one market crash, one bad year away from joining the ranks of the peasants.
The sooner Americans stop defending people who loot the system, the sooner we can stop the slide back into feudalism. The illusion is cracking. The question is whether we wake up in time—or keep applauding the circus as the tent collapses.