Biden: "I'm gonna raise some taxes"

[George K]

@Axtremus said in Biden: "I'm gonna raise some taxes":

Or increase tax revenues.

[George K]

https://reason.com/2023/03/09/bidens-budget-will-raise-taxes-without-addressing-the-federal-governments-spending-problem/

Biden's budget acknowledges that the government can't keep borrowing as recklessly as it has for the past few years, and should try to pay for the things it spends money on.

That's a welcome development but one that might ignore the actual problem: the spending itself. Indeed, the federal government doesn't have a revenue problem at all. Federal tax collections hit an all-time high of $4.9 trillion last year. As a share of the overall size of the economy—a measurement not affected by inflation—tax collections hit 19.6 percent last year. That's the highest level since 2000, the fourth-highest total since World War II, and well above the average post-war rate of about 17 percent.

The problem, of course, is that spending continues to outpace revenue by a wide margin. The Congressional Budget Office projects that under current law, the government will collect about 18 percent of GDP in tax revenue over the next 10 years but will spend a whopping 24 percent—a recipe for large and growing deficits that will slow economic growth and add to the already dangerous amount of debt the country is carrying.

Biden's plan to raise taxes might help reduce that gap, but the costs of those tax increases will be felt by every American who earns a paycheck and tries to save for retirement.

[Copper]

@Axtremus said in Biden: "I'm gonna raise some taxes":

@Copper said in Biden: "I'm gonna raise some taxes":

You want to fix the deficit?
Stop spending.

Or increase tax revenues.

Or do both.

No