The United States borrowed $532 billion in the first four months of fiscal year 2024, including $22 billion in January, according to the federal Treasury Department.
Lisa McCormick, a progressive Democratic advocate for economic justice, challenged Republicans in Congress to advance a fair tax code that holds billionaires and wealthy corporations accountable for their fair share of taxes.
“America is marching along an unsustainable path,” said McCormick. “In the first four months of fiscal year 2024, the United States borrowed $532 billion, or more than $4 billion per day; in the past year, the federal government sank $1.8 trillion deeper in debt.”
McCormick asserted that addressing the national debt, which Republicans often label as the single biggest threat to national security, requires a bold approach that requires the wealthiest Americans and corporations to contribute more so the government can perform the operations necessary to establish justice, ensure domestic tranquility, provide for the common defense, and promote the general welfare, as called for by the United States Constitution.
McCormick called on Republicans to serve the interests of hard-working families, small businesses, and local governments by embracing fiscal responsibility and fairness in taxation.
“The GOP should remember that living within the nation’s means and balancing the budget necessitates a tax code that echoes the successful policies of the post-World War II era,” said McCormick. “One simply cannot play chicken with the value of the dollar, run up trillions of dollars in unnecessary debt, refuse to provide for the needs of the American people, and pretend to be a paragon of fiscal responsibility. That delusional brinksmanship and self-righteous thinking have done incredible harm to our citizens, and it is time to make things right.”
McCormick points to historical precedents, noting that during the years following World War II, the United States experienced unparalleled economic prosperity when the wealthiest Americans paid significantly higher tax rates.
“From 1944 to 1963, the top individual marginal income tax rate exceeded 90%, peaking at 94% in 1944,” said McCormick. “At that time, corporations contributed taxes accounting for 40% of federal revenue in 1943.”
McCormick said that since the 1980s, tax rates for the wealthiest individuals and corporations have steadily declined.
“Despite fluctuations, the top income tax rate has hovered around 30% to 40% since 1987, leading to ballooning budget deficits and a mounting national debt,” said McCormick. “It is imperative for Democrats and Republicans in Congress to reverse Reaganomics by drafting a tax code that restores higher top tax rates for the wealthiest Americans.”
“By reinstating fair tax policies, the government can generate much-needed revenue to balance the federal budget, address the nation’s varied needs and secure the financial stability of future generations,” said McCormick.
Arguing that since they got the country into this mess with their fabricated claims about ‘trickle-down economics’ fantasies, McCormick urged Republicans in Congress to seize the opportunity to prioritize the interests of all Americans by championing a fair tax code that promotes economic prosperity, fiscal responsibility, and social equity.
Congressional Republicans insist that the national debt is among our nation’s greatest challenges, and they claim that reducing it is among their highest priorities, but they propose responses that endanger the entire U.S. economy.