A practically unheard-of billionaire, Amancio Ortega, just blew past household name Warren Buffett to be the second-richest man in the world, according to Bloomberg. Microsoft founder Bill Gates, who is worth $85.5 billion, remains first.
Oretega, who has amassed a net worth of $71.5 billion, is the founding chairman of the Inditex fashion group, the world’s largest apparel retailer. Inditex is best known for its chain of Zara clothing and accessories shops, which had sales of $19.7 billion in fiscal 2014.
Worth noting is that Warren Buffett, whose net worth of $70.2 billion puts him at third place, would be in second-place if not for his philanthropic giving.
A native of Spain, Ortega refuses almost all interview requests and until 1999, no photograph of him had ever been published. However, Zara is not so low-profile. The world’s biggest fashion retailer operates over 6,600 stores in more than 88 countries.
Inditex has shown strong growth year over year. In March, it reported net profit up 5 percent from the previous fiscal year. In addition, the company said it planned to open up 480 more stores this year.
Key to Ortega’s success has been keeping Zara’s manufacturing close to its home base in the ancient port city of La Coruña, rather than outsourcing production to China to cut costs. This allows Zara to act quickly on new trends and put new products into stories right away. Zara shops receive new shipments of clothing twice a week, virtually unheard of among retail stores.
If Inditex brands continue to grow and Zara’s popularity extends to millennials and beyond, the mysterious billionaire’s wealth could eventually push him to number one on the list.
National Economic Council Director Gary Cohn said Monday that tax reform has to happen this year, even if it means Congress has to stay in session longer. "I think we have a unique window in time right now, but unfortunately we keep losing days to this window,” he said. “The opportunity is now." House Speaker Paul Ryan said last week he’d keep members over Christmas if that’s what it takes. And Ryan predicted Monday that tax reform would pass the House by early next month and then get through the Senate to reach the president’s desk by the end of the year. But there are plenty of skeptics out there, given the hurdles. Issac Boltansky, an analyst at the investment bank Compass Point, told Business Insider, "The idea of getting tax reform done this year is a farcical fantasy. Lawmakers have neither the time nor the capacity to formulate and clear a tax reform package in 2017."
Passing a budget resolution for 2018 through the Senate will open a procedural door to a $1.5 trillion tax cut over 10 years. The resolution is expected to reach the Senate floor this week, although there are questions about whether Republicans have the 50 votes they need to pass it. Sens. Susan Collins (R-ME) said this weekend that she would vote for it and Lisa Murkowski (R-AK) is likely a “yes” as well, but Sen. Rand Paul (R-TN) is reportedly a likely “no” and John McCain (R-AZ) appears questionable. Now it looks like Sen. Thad Cochran (R-MI) won't be back in Washington this week to vote on the resolution due to health problems. The Hill says Cochran’s absence puts tax reform “on knife’s edge.”
Trump and the GOP still have work to do if they want to convince Americans that their tax plan won’t mostly help the rich. A CBS News Nation Tracker poll released Sunday finds that 58 percent say the tax reforms being discussed favor the wealthy, while 19 percent say it treats everyone equally and 18 percent say it favors the middle class.
The poll also found that 39 percent say that cutting the deficit should be a priority, even if it means taxes stay the same. About half as many people said cutting taxes should be prioritized even if the deficit rises.
The poll, conducted by YouGov, surveyed 2,371 U.S. adults between October 11 and 13. Its margin of error is 2.5 percent.