The biggest story you've never heard about today's federal debt [View all]

[dajoki]

The biggest story you've never heard about today's federal debt
America's wealthy used to pay taxes to support the nation. Now, they lend it money and collect interest from the rest of us

https://robertreich.substack.com/p/the-biggest-story-youve-never-heard?publication_id=365422&isFreemail=true

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The biggest recipients of these interest payments are not foreigners but wealthy Americans who park their savings in treasury bonds held by mutual funds, hedge funds, pension funds, banks, insurance companies, personal trusts, and estates.

Hence the half-century switch: The wealthy used to pay higher taxes to the government. Now the government pays the wealthy interest on their loans to finance a swelling debt that’s been caused largely by lower taxes on the wealthy.

This means that a growing portion of your taxes are going to the wealthy in the form of interest payments, rather than paying for government services everyone needs.

So, the real problem isn’t America’s growing federal budget deficit. It’s the decline in tax revenue from America’s wealthy combined with growing interest payments to them.

Both are worsening America’s already horrific inequalities of income and wealth.

What should be done? Reduce the debt by raising taxes on the wealthy.

This back story needs to be told. Please spread the word.