economy
So Nobody Is Going to Pay Taxes Now?
Earlier this month, the IRS finished collecting 2025 taxes, taking in an estimated $5.2 trillion from businesses and households. That’s a lot of cash.
TL;DR
- The U.S. collected an estimated $5.2 trillion in taxes for 2025, but government spending of $7 trillion annually is creating fiscal stimulus comparable to the Great Recession.
- Excessive government spending is causing inflation and slowing interest-rate cuts, with potential risks of joblessness and rampant inflation if the economy tanks.
- Politicians from both parties are actively promoting tax cuts and loopholes, fostering a public sentiment that taxes are unfair and should not fund social services.
- A growing number of Americans believe their income tax bills are unfair, with surging interest in tax resistance methods.
- Both Republican and Democratic administrations have implemented tax policies that benefit higher earners and corporations, often at the expense of revenue.
- Donald Trump's administration created special tax provisions, complicated the tax code, and weakened the IRS, while also proposing tariffs as a substitute for income tax.
- Democrats have largely exempted high earners from tax hikes, with some proposing further cuts or expanded credits, while embedding complex 'tax expenditures' into the code.
- Tax revolts are prominent at the local level, with many states and cities cutting income and property taxes, often disproportionately benefiting the wealthy.
- Tax cuts are criticized as inflationary and a poor solution to high prices, with many seemingly progressive policies benefiting the prosperous.
- The current tax ideology is limiting future policy possibilities for Democrats and endangering Republicans' political fortunes, while the complexity of the tax code makes it difficult for citizens to understand their obligations.