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Who is rich in America, and how did they get there?

That's the central question of an eye-opening new book, The Everywhere Millionaire, by two economists who have spent more than a decade researching the wealthiest Americans. Their answer challenges the popular narrative that America is in a new Gilded Age dominated by a modest number of spectacularly rich billionaires.

In a related development, look beyond Silicon Valley. Look beyond Wall Street. There's a much larger class of wealthy Americans hiding in plain sight. They're all around the territory. And, often, they got rich in mundane ways. They own car dealerships. They sell hot dogs and frozen mini-quiches. They run waxing salons. They supply fabricated metal and urinal cakes. They are dentists.

Collectively, these "Main Street millionaires" control much more wealth than the billionaire lightning rods who launch rockets into space, appear on manosphere podcasts, and have Hollywood movies made about them. Plenty of of these millionaires have also grown rich enough to afford superyachts, 10,000-square-foot homes, and pet tigers. And the book suggests that, as a group, their political power can rival that of the billionaire "oligarchs."

At the center of their story is a quiet revolution in the American economy: the rise of a particular kind of private business. A few decades ago, these businesses collectively made far less money than Corporate America. But by 2011, they were generating more income than all traditional U.S. corporations combined — and accounting for most of the rise in the share of income flowing to the top "one percent."

Furthermore, the book estimates that there are about three million of these private business owners in the United States. And they're each, on average, worth around $25 million.

The Everywhere Millionaire paints a complicated picture of these millions of Main Street millionaires. Some embody the American Dream: self-made entrepreneurs who rose from rags to riches by offering consumers better products and services.

But there's also a darker side to the story. The book shows how numerous Main Street millionaires have used their clout to shape public policy in their favor. They've triumphed in primary battles to lower their tax bills. And, in many industries, they've fought for — and often won — rules and regulations that can protect their profits and raise costs for consumers.

Additionally, these multimillionaires are central to the story of inequality and political power in America. Yet they've been largely missing from the national conversation. Which is why the book's authors, Eric Zwick and Owen Zidar, sometimes call them the "stealthy wealthy." It helps that it rhymes.

The book spends a lot of time making this wealthy group less stealthy with statistics and stories. But Zidar and Zwick are more interested in understanding them than in portraying them as heroes or villains.

" They are the protagonists, but some of them are protagonists in the same way Tony Soprano is a protagonist," Zwick says.

It is worth noting that the story of The Everywhere Millionaire begins back in 2014, when three young economists were toiling away in the basement of the U.S. Treasury Department. Their older colleagues called them "the Three Amigos," probably a reference to the 1986 movie starring Steve Martin, Chevy Chase, and Martin Short.

But, being Millennials who grew up on Teenage Mutant Ninja Turtles and — this is a deep cut — the movie 3 Ninjas, they privately adopted a much sillier name for themselves: "the Tax Ninjas."

3 Ninjas Movie Poster Touchstone Pictures hide caption

In the broader context, these three Tax Ninjas were Danny Yagan, Owen Zidar, and Eric Zwick. They have since karate-chopped their way into the upper echelons of academic economics: Yagan is now a professor at UC Berkeley, Zidar is at Princeton, and Zwick is at the University of Chicago.

Back in 2014, they were fresh out of grad school and, in between playing pickup games of basketball, they were serving as basically glorified interns — or "unpaid experts" — at the U.S. Treasury Department. Leaders at the Treasury wanted to know how much private businesses were paying in taxes, and they recruited these young brainiacs to help.

The Tax Ninjas had a formidable enemy in their quest: the state of data and technology at the Internal Revenue Service (IRS). The IRS computers were old and slow. The tax data was a mess. Data from individual taxpayers was one dataset. Data on businesses was another.

Notably, economists, tax analysts, and policymakers couldn't get a complete picture of how the rich were making their money. If they could comprehensively link the tax records of private businesses to their individual owners, the Ninjas could get compelling answers to fundamental economic questions. Like, what kinds of businesses were propelling people into the top of the income distribution? In which industries were they making fortunes? How critical are they to the success of their enterprises? And how much were their businesses really paying in taxes?

The Ninjas embarked on a treacherous journey, flipping and slashing through data and linking millions of private businesses to the millions of individual taxpayers who owned them.

Before they created this dataset, we had surprisingly limited information about who was rich in America and how they made their money. One essential source was the Federal Reserve's Survey of Consumer Finances. Once every three years, the Fed surveys somewhere around 5,000 American families about their finances. That's a minor sample size compared to the massive administrative datasets that tend to dazzle today's econ nerds. And the Fed's surveyors literally get financial information by interviewing people in person, on the phone, and on Zoom.

Significantly, "Interviewers often struggle to convince rich people to respond," Zidar and Zwick write. "Only one in ten who are contacted cooperate with the survey, and they volunteer only the information they're willing to share. One interviewer told us that former Federal Reserve Chairman Alan Greenspan personally intervened and persuaded a wealthy interviewee to participate."

There was also the Forbes 400, an annual list of the 400 richest Americans and their families. But the list relies heavily on publicly available information, not private tax records, and it looks only at the tippy-tippy top of rich America.

Finally — and this work was really making a big splash back in 2014 — there was the influential research by French economist Thomas Piketty and a slew of his co-authors, including Emmanuel Saez. Piketty and Saez had used decades of individual tax returns to show that the share of income going to the top "one percent" had more than doubled since the 1970s. It was their research that inspired the slogans at the "Occupy Wall Street" protests at a marginal park in lower Manhattan.

Meanwhile, but while the individual tax-return data Piketty and his collaborators used could show how much more income was flowing to the top, those returns weren't linked to detailed records about the businesses generating much of that income. As a result, they could offer only a fuzzy picture of what the richest Americans were actually doing to make their money.

The Tax Ninjas would help provide a much clearer picture. The dataset they built would ultimately connect more than 11 million businesses to more than 22 million business owners.

After a bunch of what I can only imagine to be pretty tedious work, the Tax Ninjas infiltrated the dark lair of information about rich Americans. Armed with a massive new dataset and statistical nunchucks, they began knocking loose some surprising secrets.

On a related note, by linking millions of private businesses to the people who owned them, the Ninjas could suddenly peer into a part of the economy that had long remained in the shadows: the private businesses generating income for some of America's richest people. The Ninjas' biggest discoveries centered on a particular kind of private business known as a "pass-through."

Think like a lawyer who owns their own law firm, or someone who owns a chain of Jersey Mike's restaurant franchises. The profits of these businesses "pass through" to them, and they pay taxes on these profits through their personal income tax returns. That's different from a traditional "C" corporation, where the company itself pays taxes on its profits.

Pass-through businesses come in all shapes and sizes. They include sole proprietorships, partnerships, and "S corporations." Most are privately held, which has historically made them much harder to study than publicly traded corporations. Politicians sometimes refer to them as "minor businesses," but, as the economists discovered, numerous of these businesses are very big indeed.

In a related development, over the previous few decades, this sort of private business had — quite privately — taken over the American business world. In 1980, pass-through businesses generated about one-fifth of all U.S. business income. By 2011, they generated more than half. Move over, Corporate America. Hello, Pass-Through America!

But as the Ninjas kicked and sliced through millions of tax records, they discovered an even bigger bombshell: pass-through businesses were crucial to understanding the rise of inequality in America.

In fact, Zwick says, since the 1980s, pass-through businesses have accounted for more than half of the rise in the top one percent's share of income. The same goes for the top 0.1 percent.

Furthermore, having realized that the rise of pass-through businesses was crucial to understanding why more and more of income was flowing to the top, the Ninjas next asked: where were all of these profits coming from? What kinds of industries were blasting these business owners into the financial stratosphere?

Zwick says they anticipated to find the rich were making money in ways reminiscent of the Gilded Age, when men with flamboyant moustaches and monocles made vast fortunes from the most innovative and most capital-intensive industries in the economy. Industries like the railroads, finance, steel, coal, and oil. Zwick imagined they'd find a 21st-century version of these tycoons — in industries like tech, finance, and energy — dominating the list.

" And what we see is like doctors and dentists, car dealers, lawyers — all of these skilled services," Zwick says.

Additionally, zidar and Zwick ranked the kinds of pass-through businesses that were generating the most money for people in the top one percent. The top two aren't very surprising: legal services and financial services. But then the list gets more interesting. Number 3? Auto dealers. Number 4? Consultants. Number 9 is restaurants. Number 10: Accountants. Number 13 is fabricated metal and miscellaneous manufacturing. Number 21? Dentists.

This data challenged a familiar story about rising inequality. It looked less like a 19th-century Marxist cartoon of fat-cat capitalists owning "the means of production," such as sprawling factories or power plants, and exploiting workers to make a fortune. Finance is high on this list. But, overall, this didn't seem to be primarily a story of rich capitalists investing money and then sitting on their keisters while their capital generated returns for them.

A lot of these businesses, in contrast, were dependent on the skilled labor of their owners. For example, a surgeon who owns a private practice. What makes that business valuable isn't just its capital — the money, equipment, and other assets that allow the business to run. It's the surgeon his or herself — their skills, know-how, and reputation — what economists call "human capital."

It is worth noting that in one of their early papers crunching their formidable new dataset, "Capitalists in the Twenty-First Century," the Tax Ninjas, together with U.S. Treasury economist Matthew Smith, were able to follow businesses and owners over time. And they found striking evidence on just how essential owners were to their businesses: when an owner retired or died, profits from their pass-through businesses tended to plummet by three-quarters. It strongly suggested that the real engine of these businesses' profits was the owners themselves — their human capital, not their financial capital.

Okay, so the owners themselves are often crucial to generating their businesses' profits. But that still doesn't explain why their incomes exploded, helping the top one percent pull away from everyone else.

Part of the answer lies with the much-talked-about market forces in the story of rising inequality: like how globalization and the computer revolution made a host of skilled professionals more productive, helped them sell to bigger markets, and enriched them. The rising prosperity of many Americans and their businesses also juiced demand for expensive services, from corporate law to management consulting to plastic surgery. But those same sorts of forces were boosting profits across Corporate America as well.

In the broader context, there was another crucial factor behind the skyrocketing income of pass-through businesses and their millionaire owners: tax policy. It was a change the Ninjas traced back to the same year that The Karate Kid Part II was conquering the box office.

Zidar and Zwick trace much of the dramatic rise of pass-through businesses back to the Tax Reform Act of 1986. We asked Zwick to explain it to us in the least boring way possible. He did a pretty good job.

"So you've got a movie star who's the president," Zwick says, referring to President Ronald Reagan. "And you've got a professional basketball player, who's now retired, who's a senator, Bill Bradley [a Democrat]. And both had the experience, when they were making a lot of money, of paying very high individual tax rates."

Notably, one of the crucial things that the 1986 tax reform did was lower individual tax rates below the corporate tax rate. But that created what amounted to an unintended loophole: now business owners could structure their business as a pass-through, skip the higher corporate tax rate, and boom, their profits were taxed at the lower individual rate.

In a 2016 paper crunching their new dataset, the Tax Ninjas put numbers on just how consequential the shift had become: they estimated that in 2011, pass-through business income faced an average federal income tax rate of just about 20 percent — dramatically lower than the nearly 32 percent average rate faced by traditional corporations.

Even today, after considerable changes to the tax code, earning income through a pass-through business can carry considerable tax advantages over earning it through other types of businesses — or as an employee. The economists suggest the tax rules are arbitrary and unfair. For example, Zwick says, a doctor who owns a practice may pay a significantly lower tax rate than one employed by a hospital — even when they're essentially doing the same work.

Significantly, in their book, The Everywhere Millionaire, when Zidar and Zwick talk about "Main Street Millionaires," they're talking specifically about the rich owners of private businesses.

"Collectively, Main Street Millionaires have more than thirteen times the wealth of the Forbes 400," they write. For every member of that famous list of multibillionaires, there are more than four thousand private business owners who each have at least $10 million in net worth.

And, appropriately for this book's title, these multimillionaires can be found basically everywhere.

Meanwhile, "Half the Forbes 400 live in New York, San Francisco, Los Angeles, and Miami, and the other half tend to live in such big cities as Chicago, Boston, Atlanta, Washington, Dallas, and Houston," they write. "Main Street Millionaires, by contrast, live in hundreds of communities all over America."

Zidar and Zwick began wondering who the actual people were behind these numbers and what their stories were. The tax data they were using, on the other hand, kept their identities anonymous.

So they began searching for these Main Street millionaires in the real world. And they turned to public sources where people could be identified, including magazine profiles and — our personal favorite — registries of private jet and yacht owners.

On a related note, zidar and Zwick found a colorful cast of characters, including the owner of a yacht named Top Dog.

Top Dog's owner is Dick Portillo, an entrepreneur and former Marine in the Chicago area who came from nothing and poured his family's savings into a humble hot dog stand and turned it into a billion-dollar restaurant empire over his lifetime.

Another inspiring story: Karen Bentlage, who, instead of buying a car, spent $3,000 on a tanning booth and rented it out. That led her to build a company that became the nation's second-largest distributor of tanning beds. She became a tanning multimillionaire, and then made even more money by pivoting to waxing salons after tanning fell out of fashion.

In a related development, but not all of these fortunes can be chalked up to just good old-fashioned hard work, ingenuity, and entrepreneurial hustle in delivering better products and services to consumers.

Some Main Street millionaires have also gotten rich in industries where administration rules restrict competition, protect incumbents, and help keep profits high.

For example, as we've indicated before in the Planet Money newsletter, economists have long blasted doctors and their professional groups for working to reduce the supply of medical providers and growth costs for patients. That has included efforts to restrict the number of medical residency slots and opposition to letting nurse practitioners and other providers take on work that doctors do.

Furthermore, another example that Zidar and Zwick provide is alcohol distributors. With the help of the government body regulations, they've ensconced themselves as middlemen between alcohol makers and retailers — a system that can raise distribution costs and ultimately the cost of drinking. The economists tell a similar story about real estate brokers, who have fought to protect their role as middlemen and the hefty commissions that come with it.

Being a politically protected middleman, it turns out, can be a pretty lucrative business. Probably the best example is car dealerships, which their data showed were money machines propelling their owners into the top of the income distribution. Car dealers are middlemen between manufacturers and consumers. They do provide valuable services like, for example, handling warranty claims for automakers and allowing consumers to test-drive vehicles before buying them.

But plenty of car dealerships also benefit from a slew of protections against competition, particularly state franchise laws that restrict automakers from selling directly to consumers and protect the turf of dealerships to sell their affiliated brand of cars.

Additionally, on top of this, plenty of dealerships pursue profits through notoriously shady business practices, including deceptive marketing tactics, hidden fees, and overpriced add-ons, like alarm systems, anti-rust undercoating, and floor mats. The worst offenders are sometimes branded as "stealerships."

We've conveyed on the shady economics of car buying before in the Planet Money newsletter. After my Toyota Tacoma was stolen in 2022, I encountered numerous of their profit-making shenanigans myself as I sought to buy a new truck.

As we indicated back then, Tesla, under Elon Musk, sought to circumvent the dealership model and sell directly to consumers. He has had success in some states, but car dealers have proved to be formidable opponents.

It is worth noting that car dealers, like plenty of other Main Street millionaires, have considerable political clout. Not only do they have money, but they are geographically dispersed in political districts and employ lots of people. They often sponsor local little leagues, football games, and community events. They are influential donors and constituents for a slew of politicians. Even the richest man in the world — whom many label as an "oligarch" — has had trouble defeating them.

Zidar and Zwick provide another example of Elon Musk losing while Main Street millionaires win. Musk spent hundreds of millions of dollars helping elect Donald Trump and then literally served in his administration. Yet the One Big Beautiful Bill, signed into law by President Trump last year, eliminated federal tax credits for electric vehicles, hurting the bottom line for Tesla. Meanwhile, owners of pass-through businesses got a prominent win: the law made permanent a lucrative deduction that allows several of them to subtract up to 20 percent of their business income when calculating their federal taxes.

Everyone is talking about the "oligarchs." But Zwick jokes there's another powerful group of rich people in America: the "middle-garchs."

In the broader context, it's not just the money. It's not just the lobbying. It's not even just that Main Street millionaires are all over the nation and serve as essential donors and constituents for politicians.

As Zidar and Zwick document in their book, Main Street millionaires often become politicians themselves. Business owners make up just 3 percent of the U.S. population, they write, but they are dramatically overrepresented in elected office.

Decamillionaires — worth at least $10 million — "are more than ten times as likely to serve in Congress as their share of the population would suggest," they write. Centimillionaires — worth at least $100 million — are 62 times as likely. "These wealthy politicians," Zidar and Zwick write, "are predominantly Main Street millionaires."

Notably, their overrepresentation is even more extreme at the state level. "In 2023–24 state legislatures, 40 percent of legislators came from business backgrounds — and that figure rises significantly if we include lawyers and doctors who own their own practices," they write. "Twenty-one state legislators across the state were auto dealers in 2023–24."

To be clear, there's nothing inherently wrong or corrupt about wealthy business owners serving in authorities. Several bring valuable experience and expertise to public office. And these millionaires are often popular with the electorate.

But Zidar and Zwick offer examples in the book of how being both a business owner and politician can create potential conflicts of interest.

Significantly, for instance, they tell the story of Bob Corker, a Republican from Tennessee who served as a U.S. senator. Corker was a real estate developer, and when he was elected, he was one of the richest members of Congress. He proved to be a critical vote for the Tax Cuts and Jobs Act of 2017, a primary legislative accomplishment of President Trump's first term.

"He decided to support President Trump's huge tax cuts in 2017 only after lawmakers inserted a provision — later dubbed the 'Corker kickback' — from which he was destined to benefit greatly due to his rental income from real estate–related LLCs," Zidar and Zwick write. Corker denied these accusations.

Another example they provide, from the other side of the aisle: Michael J. Madigan, a powerful Illinois Democrat and wealthy lawyer who maintained a private legal practice while serving as speaker of the Illinois House of Representatives. In 2025, Madigan was convicted on federal corruption charges involving schemes that used his political power to steer business to his law firm.

Meanwhile, there are, of course, a host of honorable people who own businesses and choose to become politicians. But the fact is that Main Street millionaires are a politically vital class of people. They're not just influencing politicians. They often are politicians.

America's billionaires obviously have extraordinary wealth and political power. But Zidar and Zwick argue they're eclipsing a much larger — and, collectively, much richer — class of wealthy Americans who also wield enormous influence over our economy and politics.

Their businesses may be more boring than those that launch rockets into space or have algorithms that influence how we shop or view the world. They may not be celebrities. But they may be worth paying more attention to.

On a related note, coming soon in the Planet Money newsletter: How does someone even become a Main Street millionaire in the first place? Zwick's first answer: Be born rich. His more useful answer leads us to a sweeping new study of what creates successful entrepreneurs. Stay tuned (you can subscribe to the Planet Money newsletter here).

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