Read my lips

Ever since George H.W. Bush’s presidency, increasing taxes on anyone but the richest Americans has been unthinkable.

This may explain why taxes rates have fallen for most Americans over the last several decades, even as the size of government has increased.

Harris’ plan is considered more fiscally responsible — because it increases the primary deficit by only $2 trillion.

Trump’s would increase it by $4.1 trillion.

These are both silly numbers, and the fact that the Harris number is less silly should not give voters or bond markets much comfort.

Both parties suffer from their own delusions: Republicans that tax cuts and higher tariffs pay for themselves,

Democrats that government growth can be funded entirely by higher taxes on rich people.

Allison Schrager Bloomberg 4 november 2024

This year the government will collect taxes worth about 17% of gross domestic product, roughly the average for the preceding half-century.

But it will spend about 24% of GDP, compared to a 50-year average of 21%.

The resulting deficit of 7% of GDP is nearly twice the historic norm, even though the economy is at full employment and growing steadily.

Bloomberg editorial 5 November 2024

Tillbaka till WoS 6 November 2024

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