This report was created in partnership with Americans for Tax Fairness and Health Care for America Now.
For a PDF, click here.
Washington has 12 billionaires who collectively saw their wealth increase by $89.9 billion or 28.0% during the first three months of the COVID-19 pandemic even as the state’s economy was reeling from a huge spike in joblessness and a collapse in taxes collected.
Between March 18 — the rough start date of the pandemic shutdown, when most federal and state economic restrictions were in place — and June 17, the total net worth of the state’s 12 billionaires rose from $321.4 billion to $411.3 billion, based on an analysis of Forbes data. Forbes’ annual billionaires report was published March 18, and the most recent real-time data was collected June 17 from the Forbes website.
Three Washington billionaires — Jeff Bezos, Bill Gates and Steve Ballmer — saw their wealth grow by 39%, 12% and 30%, respectively, while over about the same period, 1,317,000 of the state’s residents lost their jobs, 27,000 fell ill with the virus and 1,200 died from it.
|Washington Billionaires March 18 to June 17, 2020|
|Name||March 18 Net Worth||June 17 Real Time Worth||Wealth Growth in 3 Months||% Growth in 3 Months||Primary Income Source||Industry|
|Jeff Bezos||$113.0 Billion||$156.8 Billion||$43.8 Billion||38.7%||Amazon||Technology|
|Bill Gates||$98.0 Billion||$109.5 Billion||$11.5 Billion||11.7%||Microsoft||Technology|
|Steve Ballmer||$52.7 Billion||$68.4 Billion||$15.7 Billion||29.8%||Microsoft||Technology|
|MacKenzie Bezos||$36.0 Billion||$51.3 Billion||$15.3 Billion||42.4%||Amazon||Technology|
|Ken Fisher||$3.9 Billion||$5.4 Billion||$1.5 Billion||38.8%||money management||Finance & Investments|
|Charles Simonyi||$3.5 Billion||$4.5 Billion||$0.96 Billion||27.5%||Microsoft||Technology|
|Gabe Newell||$3.5 Billion||$3.5 Billion||-$0.01 Billion||-0.3%||video games||Gambling & Casinos|
|Howard Schultz||$3.0 Billion||$3.9 Billion||$0.94 Billion||31.2%||Starbucks||Food & Beverage|
|James Jannard||$2.8 Billion||$2.9 Billion||$0.06 Billion||2.1%||sunglasses||Fashion & Retail|
|Craig McCaw||$1.8 Billion||$1.8 Billion||-$0.03 Billion||-1.9%||telecom||Telecom|
|Chuck Bundrant||$1.6 Billion||$1.9 Billion||$0.25 Billion||15.6%||fishing||Food & Beverage|
|Martin Selig||$1.6 Billion||$1.6 Billion||$0.02 Billion||1.4%||real estate||Real Estate|
|TOTAL||$321.4 Billion||$411.3 Billion||$89.9 Billion||28.0%|
Sources: All data is from Forbes and available here. March 18, 2020, data is from the Forbes World’s Billionaires List: The Richest in 2020. June 17, 2020 data was taken from Forbes real-time estimates of worth that day.
Washington State faces a $7 billion budget deficit over the next three years. Cutting the budget now will cause lasting harm to millions. Washington took 2 years longer to recover tax revenue after the Great Recession than other states. When looking at the budget per capita and adjusting for inflation, the Near General Fund only last year returned to its per capita levels of 2008. After the McCleary decision, the majority of the recovery gains went to K-12 funding. The funding for everything else, however, was still more than 18 percent lower per capita in 2019 than it was in 2008.
Nearly every state agency had significantly less funding per capita in 2019 than in 2008. Unless legislators reform Washington’s tax code to generate additional funding, they’ll have to cut funding for health care, education, mental health, housing, child welfare, and other services that are helping keep residents afloat.
Among other COVID-19 victims are the 27 million Americans who may lose their employer-provided healthcare coverage. Low-wage workers, people of color and women have suffered disproportionately in the combined medical and economic crises because of long-standing racial and gender disparities. Billionaires are overwhelmingly white men.
Over the same three-month period, the nation’s 600-plus billionaires saw their combined wealth increase by $584 billion or 20% — rising from $2.948 trillion to $3.531 trillion, based on ATF’s analysis of Forbes data. Meanwhile, the Federal Reserve reported that as of the week of June 10, total U.S. household wealth had shrunk by $6.5 trillion during the first three months of the pandemic.
The three richest Americans, Jeff Bezos, Bill Gates and Mark Zuckerberg, saw their combined wealth jump by $87 billion, or 38%, 11% and 58%, respectively. The total number of billionaires grew from 614 to 643.
“The wealthy do not contribute, and have never contributed, proportionately and in an equitable manner, to the public services of our state,” said John Burbank, executive director of EOI. “Washington households with over half a million dollars in income pay less than 3 percent of their income in state and local taxes. The uber wealthy most likely pay less than 1 percent. The popular phrase is that we are all in this together. But we aren’t, are we? The wealthiest among us remain insulated from the pandemic crisis and the economic crisis. And it seems that they really don’t care.”
“It’s immoral that billionaires are getting richer and richer while average Americans are treading water if they are lucky, or drowning, from the economic crash caused by the pandemic,” said Frank Clemente, executive director of Americans for Tax Fairness. “Congress needs to urgently provide a major new financial aid package to ensure working families can recover and critical state and local services can keep being provided. The package should repeal the huge tax break for millionaires in the first major financial aid law and block any new tax cuts for corporations and the wealthy.”
“In the biggest public health crisis of our lifetimes, billionaires are getting richer while millions are losing coverage or have no access to affordable health care,” said Margarida Jorge, executive director of Health Care for America Now. Rather than pass the relief measures that we all need to beat COVID, Congress is letting families, workers, seniors and many others go without the health care they need to survive, letting health care workers go without protective equipment and forcing hospitals to face unprecedented shortages in beds, ventilators and medicines. It’s obvious there’s plenty of money — the problem here is Congress’ priorities.”
Decades of tax cuts for the rich have fueled the growth of billionaires and their wealth. And even in the midst of the greatest national emergency since World War II, tax handouts to the wealthy have continued — most recently in the form of a $135 billion handout slipped into the $2 trillion CARES pandemic relief law enacted in late March. It primarily benefits millionaire business owners and costs three times more than the law spends on social safety net programs and exceeds the amount expended on hospitals and public health.
The House HEROES Act passed in May would repeal this tax break that is giving an average tax cut of $1.6 million this year to 43,000 millionaires and billionaires, according to the Joint Committee on Taxation (JCT). That big payout contrasts sharply with the one-time stimulus checks of up to $1,200 that have helped 159 million people under the CARES Act. Closing this tax loophole and making it permanent would raise $246 billion per the JCT, which could be used for a new major pandemic financial relief and recovery package.
As the U.S. Senate begins consideration of the next coronavirus aid legislation, a broad coalition of more than 230 organizations, including Washington state groups, is urging repeal of the Millionaires Giveaway tax cut for wealthy business owners. So far, 24 senators support legislation (S. 3640) to repeal this giveaway but not Senators Patty Murray (D) and Maria Cantwell (D).
Rather than respond to growing needs from increasing numbers of unemployed people, new patients, and overburdened local and state agencies, Senate Majority Leader Mitch McConnell has been slow-walking legislative action on another major relief measure such as the HEROES Act, especially one that would provide a major cash infusion to state and local governments that have lost huge amounts of tax revenue but must by law balance their budgets. Instead, McConnell has suggested that states file for bankruptcy.
The HEROES Act would greatly benefit Washington during this economic crisis by providing immediate relief and laying the groundwork for a more robust economic recovery, including:
- $11.2 billion out of a total of about $500 billion in direct aid to state governments over the next two years for critical services.
- $7.3 billion out of a total of $375 billion in direct aid to local governments over the next two years for critical services. Go here to see how much is going to communities in your state.
- $2.2 billion out of a total of $117 billion in increased federal Medicaid funding over the next two years.
- $1.7 billion out of a total of $90 billion for public schools for grades K-12 and public colleges and universities.
State residents will also get their fair share of the following other assistance provided by the HEROES Act should it become law:
- Extension through the end of the year of the $600 per week in enhanced unemployment benefits that are expiring at the end of July.
- Renewal and increase in direct assistance checks to individuals and families: $1,200 per each adult and child, up to $6,000 per household.
- $100 billion to protect renters and homeowners from evictions and foreclosures.
Increased support from the federal government directly to states through these provisions is the best way to avoid state cuts to jobs and services that would worsen the impact of the pandemic and prolong the recession the country is experiencing.
Economists warn that delayed action on more funding to states, unemployment benefits, and safety net services will have dire consequences for recovery, could lengthen and deepen the recession and curtail job growth for the next decade. Moreover, coronavirus cases are back on the rise in over a dozen states where the re-opening process has increased risk of exposure, furthering jeopardizing the economy.
Senate Majority Leader Mitch McConnell has cited rising deficits in delaying immediate consideration of new pandemic relief legislation, but so far has not proposed rolling back the $135 billion Millionaires Giveaway in the CARES Act. Rather, McConnell’s key priority for the next relief package has been to provide legal immunity to employers by limiting workers’ rights in court to sue bosses who put their safety at risk or neglect COVID protocols.
Polling shows that half of Americans have been personally economically impacted by the COVID-19 pandemic — losing their job or having their hours cut back. Congress must provide help by working with local and state elected officials and agencies to ensure workers, families and small businesses get the resources they need to make it through the pandemic and mitigate the harmful consequences of the economic slow-down.
State residents can’t afford excuses from Congressional leaders who prioritize tax giveaways for the rich and corporations over the basic needs of average people or more delays that will double down on prolonged pain for millions.
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