The Rich Should Want Higher Capital-Gains Taxes: Nicolas Rohatyn

This year, several of America’s most celebrated private companies are expected to go public at combined valuations worth trillions of dollars. SpaceX’s initial public offering later this week could raise as much as $80 billion, making it the biggest in history.

The founders, early employees and investors who hold stakes in these businesses are about to experience the largest concentrated wealth-creation events in a generation. Almost none of it will arrive as a paycheck.

The American social contract is fraying, not because capitalism has failed, but because the distribution of its rewards has become disconnected from labor and increasingly concentrated ...