17jul23 – Alexandria, VA Even the chair of Rockefeller International fails, or dares not to mention one of the principal reasons why the U.S. deficit continues to expand faster than GDP or productivity growth. That taboo subject is the continuing refusal of our elected representatives to increase tax revenues. The U.S. pays the smallest total tax burden (including Social Security) of any of the significant developed economies: around 34% of GDP vs. the OECD average of closer to 40%. Our elected representatives love to approve tax cuts while increasing spending. And this while the U.S. ages, infrastructure is crumbling, healthcare is overpriced and sub-par while our public educational system lags further behind competitor countries. K Street lobbies have been so successful in carving out special tax treatment for special interests that the S&P 500 companies pay effective tax rates far below the official minimum rate. Many found the new 15% global minimum tax rate too high because they pay, effectively, a lower rate. At some point, there will have to be progressive (a positive word…) increases in our corporate and individual tax rates if there is not to be a major debt crisis. Paul Horne From: Salon <salon-bounces@listserve.com> On Behalf Of Chas Freeman via Salon The Financial Times, July 16, 2023 |