Higher Taxes? How About Less Spending?

  • by:
  • Source: WSJ
  • 11/27/2023

In “A New Approach to Taxes That Pays Its Own Way” (op-ed, Nov. 20), Brian Deese and David Kamin depict a U.S. government starved of revenues and tell us, “The tax system of the 1990s could have financed the government we have today.”

But the U.S. tax system of the 1990s collected only about 18% of gross domestic product. After the pandemic spending binge, during which the authors’ Biden administration didn’t have spending pay its own way, the federal government is now spending 24.2% of GDP.

They tell us that the 2017 tax cut went largely to high-income individuals. But the nonpartisan Joint Committee on Taxation found that it made the world’s most progressive tax system even more progressive. As to their argument that more tax cuts should go to low-income individuals: refundable tax credits to people who don’t pay income tax is welfare, not a tax cut.

burned 100 US dollar banknotes by Jp Valery is licensed under Unsplash unsplash.com

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