Federal Taxes & Spending
Cal Berkeley professor Robert Reich claims that “if not for the Trump and Bush tax cuts, federal revenues would keep pace with federal spending indefinitely.”
IN FACT, the portion of the U.S. economy consumed by federal taxes has been roughly level for 8 decades. Meanwhile, the portion consumed by federal spending has grown from 3% in 1930 to 34% in 2022 — almost entirely due to social programs.
Most “tax cuts” are actually “tax evens” that correct for bracket creep, which consumes an ever-growing share of people’s incomes over time.
