Why You’re More Likely To Become a Billionaire in the US Than Anywhere Else
The idea of becoming a millionaire, let alone a billionaire, seems like a dream for most. Reaching such a high level of wealth and not having to worry about money seems, well, unfathomable.
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However, if you’re living in the U.S., you’re more likely to reach this type of wealthy status.
According to the Henley & Partners USA Wealth Report 2024, it’s reported that the U.S. ranks number one in the world when it comes to the number of billionaires. As of December 2023, there were 788 billionaires living in the U.S. To highlight this statistic further, 5.5 million millionaires are living in the U.S. and liquid investable wealth in the U.S. totals $67 trillion. The top two U.S. cities with the highest concentration of millionaires and billionaires are New York and San Francisco.
So, you might be thinking: why is it that the U.S. has more billionaires and millionaires than any other country in the world? There are several reasons that factor into the billionaire equation. Here are some key reasons why you’re more likely to achieve billionaire status in the U.S., according to CNBC and USA Today:
Less Rigid Regulations
Compared with other nations, the U.S. has more relaxed tax laws that often favor the wealthy, which has allowed for more wealth creation opportunities. Additionally, the U.S. is less involved in regulating the private sector than other nations, which also has an impact on significant wealth accumulation. For example, there’s less government involvement in business compared to countries like China, which has seen slower wealth creation and an exodus of millionaires since the implementation of strict COVID-19 lockdowns. The U.S. continues to outpace China in terms of the high-net-worth economy. Today, more billionaires are created in the U.S. than anywhere else on the planet, a trend that continues to grow.
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More Wealth-Creation Opportunities
It’s explained by Dominic Volek, group head of private clients at Henley & Partners, to CNBC that “wealth creation opportunities in the U.S. are second to none globally.”
As a result, entrepreneurship in the U.S. is far more common. The U.S. continues to be a significant draw for entrepreneurs in tech and engineering industries. Additionally, the U.S. is the global leader when it comes to fine art sales (another massive form of wealth), accounting for 42% of sales by value.
Favorable Tax Laws
Existing favorable tax laws have made it easier for people to become billionaires in the U.S. For example, President Trump’s 2017 Tax Cuts and Jobs Act (TCJA) provided significant tax relief to the wealthy. This included the individual tax rate for the highest earners dropping from 39.6% to 37%, a reduction in the corporate tax rate from 35% to just 21% (representing a 40% decrease), and a doubling on the estate tax threshold from $5.5 million to $11.2 million. Additionally, the U.S. currently has a relatively low long-term capital gains tax of 20%, which has remained the same for decades.
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This article originally appeared on GOBankingRates.com: Why You’re More Likely To Become a Billionaire in the US Than Anywhere Else
