Republicans aren’t going to tell Americans the real cause of our $31.4tn debt
What’s that then Bobby?
Not only is the Republican story false, but it leaves out the bigger and more important story behind today’s federal debt: the switch by America’s wealthy over the last half century from paying taxes to the government to lending the government money.
This backstory needs to be told if Americans are to understand what’s really happened and what needs to be done about it. Republicans won’t tell it, so Democrats (starting with Joe Biden) must.
A half century ago, American’s wealthy helped finance the federal government mainly through their tax payments.
Tax rates on the wealthy were high. Under Republican president Dwight Eisenhower, they were over 90%. Even after all tax deductions, the wealthy typically paid half of their incomes in taxes.
Wealthy and income taxes – moron, that’s on income, not wealth. But:
The portion of GDP paid as tax is not at a low. In fact, it’s at a high. Therefore deficits – which are what lead to debt – is not caused by a lack of tax revenue. It’s caused by incontinent spending.