No Mercy / No Malice: Taxes

Spending & Debt

The discussion on government spending highlights its role in the growing national debt. George Hahn compares the U.S. government's spending habits to a "buy now, pay later" model, emphasizing that while spending has increased, it hasn't kept pace with revenue, leading to a reliance on debt 1. He notes that government debt isn't inherently negative due to low borrowing costs, but the current debt level, projected to reach 118% of GDP by 2033, is concerning.

The problem is that we aren't funding the spending we've agreed upon. We've covered the difference with debt.

--- George Hahn

To address this, Hahn suggests that increasing revenue through better tax collection could help close the gap without raising tax rates 1.

   

Policy Divide

The fiscal policy debate centers on the political divide over taxes and spending. Scott Galloway points out that both Democrats and Republicans contribute to reckless spending, with Democrats advocating for more social programs and Republicans for lower taxes 2. George Hahn argues that reducing tax evasion and corporate tax avoidance could save $1 trillion annually, potentially closing the $1.4 trillion deficit without raising taxes 3.

Substantially reducing tax evasion and corporate tax avoidance could save us $1 trillion per year.

--- George Hahn

This approach could also allow for significant policy changes, such as eliminating federal income taxes for most households or making the child tax credit permanent 3.