The US government’s rapidly climbing national debt has grown to more than $100,000 per citizen.
According to data from the Peter G. Peterson Foundation, America’s national debt has reached $34.15 trillion – equal to about $101,591 per capita.
Rising revenues are not canceling out the soaring debt, leading to a growing deficit, which is currently at $509 billion for 2024 so far, and a debt-to-GDP ratio of 122.8%.
In an interview with Bloomberg, Former Treasury Secretary Robert Rubin says the US is in a “terrible place” financially and suggests the country has virtually no other choice but to increase taxes to deal with its deteriorating monetary situation.
“The risks are enormous and some of them are materializing already, like higher interest rates…
Looking forward, we’re having to deal with both spending and taxes… When you get realistic about it, I think you’re going to have to largely [rely on raising taxes].”
Rubin estimates that about 60% of the entire deficit that fomented between the year 2000 and 2022 was the result of tax cuts.
However, the former official says that solving the debt crisis is in limbo due to political gridlock, with Republicans opposing tax hikes and the Democrats opposing cuts to entitlements.
“There’s a lot of talk, but the talk is always divided politically between the Republicans who refuse to raise taxes, and the Democrats who won’t do entitlements.”
Rubin says that he hopes Washington will address the deficit after the election in November, but adds that he “wouldn’t bet on it.”
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