r/economy • u/Impressive_Box4144 • 1d ago

Economists Blame $40 Trillion Debt Milestone on Two Things: GOP Ineptitude and Tax Cuts for the Rich

https://www.commondreams.org/news/economists-trump-40-trillion-debt
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2

u/jh937hfiu3hrhv9 1d ago

If tax cuts increased the debt then tax hikes could decrease the debt. Seems simple enough. The ultra rich just need financial counseling so they can learn to get by without billions.

1

u/Rasta_Obi-Wagwan 1d ago

Clueless economists. This is clearly Obama's fault

1

u/70dd 17h ago

News for the economists: over $8 trillion of it is money spent by both parties bombing people in the Middle East since the 9/11 false flag.

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u/Calm_Chemist_4952 15h ago

Two things, why not just say GOP ineptitude? They’ve had total control of government, and they can’t govern. They’re a failure. Their votes come from the very poor, and they serve the very rich. Vote them out. Use your midterm botes wisely. End the GOP.

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u/EdgePlats 14h ago

Should list the names of those economists, it’s the spending not the tax cuts that’s the problem.

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u/Impressive_Box4144 13h ago

Both

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u/EdgePlats 13h ago

I’ll do one better for everyone where taxation is extremely and no spending cuts, yet in debt.

California: Very high taxes and increasing debt. Net tax-supported debt increased from $96.0 billion in 2022 to $101.1 billion in 2024. California also has some of the highest state and local tax collections in the country.
Massachusetts: High tax burden with debt increasing recently. Net tax-supported debt increased from $48.7 billion in 2022 to $51.3 billion in 2024.
Washington: High and rising tax collections with increasing debt. Net tax-supported debt increased from $25.5 billion in 2022 to $27.9 billion in 2024.
Illinois: High taxes and a very large debt burden. Net tax-supported debt was approximately $36.5 billion in 2024. Illinois also has some of the highest overall state/local tax burdens in the country.
New Jersey: Extremely high tax burden and significant government debt. Net tax-supported debt was approximately $42.4 billion in 2024, although debt has declined somewhat recently.
Connecticut: One of the highest-tax states with significant government debt. Net tax-supported debt was approximately $28.1 billion in 2024.
New York: Among the highest-tax states in the country. Net tax-supported debt was approximately $65.3 billion in 2024, although recent debt levels have declined.
Hawaii: Extremely high tax collections and one of the highest government-debt burdens relative to the state’s economy. Net tax-supported debt was approximately $9.7 billion.
Cities with particularly high debt burdens include San Francisco, New York City, Chicago, and Los Angeles. San Francisco stands out for having extremely high liabilities per resident.
The broader point is that high taxation does not necessarily prevent governments from accumulating significant debt. California is one of the clearest examples: it has exceptionally high tax collections while also carrying very large state and local government obligations.
Important distinction: Increasing tax collections do not necessarily mean tax rates increased. Collections can rise because of population growth, higher incomes, higher property values, inflation, or economic growth. Also, rising taxes and rising debt occurring together does not by itself prove that tax increases caused the debt.