It is a fact that the wealthy in the United States have become rentiers rather than taxpayers. Over the last fifty years the wealthy have moved from 90% tax rates under Eisenhower to owning interest on the national debt. One of the largest contributors to the national debt, currently at $31.4 trillion, is the reduction in tax revenue collected from corporations and the wealthy. Trump's tax cuts reduced the effective rate of taxation on the rich to below that paid by the middle class to 23%. Robert Reich, former Labor Secretary, says that under Trump the federal budget deficit increased by $113 billion, while corporate tax receipts decreased by $90 billion, accounting for 80% of the deficit,
Of course--unless you live in the MAGAverse--the government has to pay interest on that debt, which has hit a record $475 billion. (fiscal 2022) Most of that interest is paid to wealthy investors in US debt instruments via hedge funds, pension funds, banks, insurance companies and personal estates. So the wealthy are getting a return on their invested money from the rest of us paying taxes to get services we all need. Such a deal! LOOK, at this chart:
Congressional figures show the percent spent on interest alone will increase to 3.3% of GDP by 2032 and to 7.2% by 2052. Despite what the crazies on the right are telling you, its not government spending that is the problem, its the lack of taxation on the rich who are getting richer from our tax payments! The solution is simple: make the rich and their corporations pay more taxes. Kevin McCarthy, your fiscal hypocrisy knows no bounds.