This Is Hell! How the Tax Code Made an American Aristocracy / Ray Madoff
Nov 13, 2025
Ray D. Madoff, a legal scholar from Boston College specializing in wealth inequality, discusses her book on how the U.S. tax code fosters aristocracy. She reveals how misunderstood tax laws allow the wealthy to evade their fair share while the middle class bears the burden. Madoff argues for enhancing tax literacy to help citizens understand economic disparities. She critiques charitable tax deductions and explains the role of dynasty trusts in perpetuating wealth. Ultimately, she advocates for reforming taxes to level the playing field.
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Tax Code Directly Shapes Wealth Flow
- The tax code shapes American economic life far more than most people realize.
- Ray Madoff warns that a disconnect exists between how rules appear to work and how they actually operate.
Top Payer Stats Mislead About Wealth
- Headlines that 'the top 1% pay 40% of income taxes' mix up high earners with the ultra-wealthy.
- Madoff explains the richest avoid income tax by turning wealth into untaxed growth or borrowing against assets.
Inheritance And Unrealized Gains Are Exempt
- Income tax law broadly taxes 'all income' but excludes inheritances and unrealized gains.
- Billionaires access cash by borrowing against assets, avoiding taxable realization.
