Almost all wealth is owned by top 50% of Americans. Tax cuts may deepen divide, experts say.

A recent snapshot of U.S. wealth from the Federal Reserve depicts a nation where the top 50% of households controls 97.5% of the country's assets — a lopsided distribution that experts say could accelerate if President Trump's tax cuts are extended and low- and middle-income Americans take a hit from his tariff barrage. 

While wealth inequality has always been part of American society, it's widened since the late 1980s, with the gains disproportionately flowing to the very wealthiest Americans, the Fed data shows. At the end of 2024, the top 1% of households owned 31% of the nation's assets, up from 23% in 1989, when the Fed data begins. Over that same period, the share owned by the bottom half slipped to 2.5% in 2024, down from 3.5% in 1989. 

The data comes as Mr. Trump is seeking to extend his 2017 tax cuts in addition to a host of other reductions he promised on the campaign trail — from getting rid of taxes on Social Security income to making interest for some auto loans tax deductible. The benefits from those tax cuts are forecast to accrue largely to the top-earning households. At the same time, Republican lawmakers are eyeing cutbacks to some social safety net programs, such as Medicaid and food stamps, to pay for the tax cuts.