# Car Dealers Power Top 1% Pass-Through Income

> Economists reveal auto dealers as top source of top 1% business income, not tech billionaires.
- Title: Car Dealers Power Top 1% Pass-Through Income · 24/7 Wall St.
- Summary: Economists reveal auto dealers as top source of top 1% business income, not tech billionaires. Auto dealers generate more concentrated pass-through income…
- Keywords: pass-through income, top 1%, auto dealers, economists, university of chicago, princeton university, state franchise laws, mercedes dealership, brockway family, qualified business income deduction, dealer-direct sales, Car
- Source: 24/7 Wall St. — https://247wallst.com/personal-finance/2026/09/21/forget-tech-billionaires-economists-say-car-dealers-are-the-number-one-source-of-top-1-pass-through-business-income
- Author: Jake FitzGerald
- Published: 2026-09-21T14:48:15+00:00
- Read time: 1 min
- Topics: pass-through income, top 1%, auto dealers, economists, university of chicago, princeton university, state franchise laws, mercedes dealership, brockway family, qualified business income deduction, dealer-direct sales
## Pass-Through Income Breakdown
Pass-through income comes from S corps, partnerships, and sole proprietorships. It flows directly to owners on personal tax returns.
## Top 1% Income Source
Auto dealers rank first among industries generating top 1% pass-through business income according to economists.
## Why Dealers Lead
State franchise laws grant dealers protected local territories, creating a monopoly on new vehicle sales for a given brand.
## Tax Data Method
Economists matched anonymized tax records with yacht and jet registrations to identify top earners.
## Brockway Example
The Brockway family sold their Mercedes dealership for hundreds of millions and spent $60 million on a Paris wedding.
## Policy Impact
State franchise laws directly affect debates over corporate rates, qualified business income deductions, and dealer-direct sales.
## Key takeaway

Auto dealers generate more concentrated pass-through income than tech or finance for America's top 1%.