What the tax cut regime has wrought

PHOTO: National Debt Clock showing over $9 trillion

Next year the United States will run a budget deficit of $490 billion. That will bring total US debt to $10 trillion. (Thanks China!)

Then there’s this fun news (@ Ezra Klein):

In a new sign of increasing inequality in the U.S., the richest 1% of Americans in 2006 garnered the highest share of the nation’s adjusted gross income for two decades, and possibly the highest since 1929, according to Internal Revenue Service data.

Meanwhile, the average tax rate of the wealthiest 1% fell to its lowest level in at least 18 years. The group’s share of the tax burden has risen, though not as quickly as its share of income.

So, what should we should we do? According to McCain, we should bomb Iran, stay in Iraq forever and cut more taxes!

Sure, Obama’s plans won’t bring us any closer to a balanced budget, but at least he isn’t pretending to be a fiscal conservative. And while Obama also promises to cut taxes for the lower and middle class, he plans to raise overall revenue through increased taxes for the rich.

The last eight years of fiscal insanity will not make the road ahead easy, but we can’t count on the largess of the Chinese forever. We need to find a way to balance the budget before we become the 21st Century’s Spain.

Flickr photo by Digiart2001

One Comment

  1. Ian

    Everyone wants schools, roads, a big military, and every other government service, and yet they don’t want to pay for them. I don’t understand why people think this should all be free and where exactly do they think the money for all of that comes from?