National Debt: Increased Taxes or Reduced Spending?

Posted on February 26, 2022

National Debt: Increased Taxes or Reduced Spending?

In 2013 many Americans noticed their payroll taxes increased. There has been a lot of talk about increasing taxes on certain segments of taxpayers, both in favor and in opposition. U.S. News brings their perspective to the discussion by suggesting that the government needs to limit its spending rather than asking taxpayers to pay more in taxes.

“The nonpartisan Congressional Budget Office estimates President Obama’s policies will already lead to a 25 percent increase in federal revenue over the next three years.

Can you imagine your salary rising 25 percent? Most working Americans are excited to receive a 3 percent raise in this economic climate. Yet, Washington seems impervious to this economic reality, and instead just always demands more.

Washington wants once again to pass the buck to American families, and ask them to cut more from their own personal budgets, so politicians can continue to spend irresponsibly. It’s time for Americans to say enough is enough; Washington, not taxpayers, should tighten their belts this time.”

Government spending must also be highlighted, and any excess or irrelevant spending must cease. Ineffective policies by politicians have often led to an increase in the woes of taxpayers. Rising tax rates have not only hit the rich, but almost every taxpayer. Apart from the payroll taxes, numerous other taxes have made living more expensive. U.S. News shares some of the recently increased taxes:

“The fiscal cliff deal alone will increase tax-paying Americans’ tax bill by an average of $1,635. For starters, most working Americans face a payroll tax that’s almost 50 percent higher than last year’s.

But that’s not the only new tax kicking in 2013: There’s marginal tax rate increases on the top individual income tax rate which will affect many small business owners, Medicare Payroll tax increases, and many other taxes that may not directly hit your paycheck, but will impact your economic fortunes nonetheless. Estate taxes also increase in 2013 from 35 to 40 percent on inheritances over $5.12 million.”

Government spending must be kept in public to improve accountability and make the government more responsible. It is time not only to think about how to fill the tax gap with increased taxes, but also to consider how government revenue is spent and where money can be saved.