Episode 112: Will America Be a Super Power in 2040, My Review of David Walker's New Book (Part 2)

Last week David did part 1 of the review of David Walker’s new book and talked about the reasons why the US will probably no longer be a world superpower by 2040. In this episode we’re going to cover the proposed solutions. 40% of Americans don’t pay any tax at all with 20% of Americans receiving a refundable tax credit. This has been used in lieu of raising the minimum wage. The federal government forgoes $1.4 trillion in taxes per year in allowable deductions. One solution would be to shore those deductions up. Tax cuts don’t pay for themselves unless they are accompanied by a dramatic spending cut. We can’t grow our way out of the problem with tax cuts. All exemptions, deductions, and exclusions would have to be eliminated. David Walker also proposes making income tax more inclusive and progressive so that everyone above the poverty level would pay taxes and more people would be invested in the system. It’s not enough to tax the rich. He also discussed a wealth tax of 2%-3% per year...