An update to this message below regarding our growing debt. In this year’s campaign, we hear a great deal of hyperbole about debt free college (Hillary) and free child care (Trump + Hillary) “new investment” (Trump and Hillary). The two have also promised tax cuts for the middle class. Because of the ignorance of the majority of the voters, people are supporting these candidates without demanding a solution as how to pay for all of these gifts. Hillary has stated she will tax the rich and Trump has not said how he would pay beyond growing the economy and eliminating waste.
I did a little model of taxing the rich based on IRS 2014 Income Tax data.
Even if the capital gains rate was hiked to 30% and the top three tax brackets where set to 42, 44, and 48 percent, the gain in new revenue would be only $171,976,037 dollars. This change would likely hurt the economy, drive down GDP and investment while having negligible impact on our borrowing needs. My conclusion is we do not have a taxing problem, we have a spending problem.