By late 2026, the US national debt stood at $40.41 trillion. At the same time, the wealthiest 10% of Americans had more than three times as much with $127.95 trillion. And possibly even more as some believe they could hiding as much as $8 trillion more on top of that.
So, they could easily pay of the whole debt and still have at least $87.54 trillion. Bish bash bosh and the debt is cleared just like that.
Except the wealthy will delight in saying it isn’t that simple. And they’re right. Most of that wealth is illiquid, tied up in various investments. They can’t just tap their card on a terminal and there’s another $100 million knocked off the debt.
And so the wealthy think that ends the argument. The system is so broken, it can’t be fixed. Because it’s not easy, it’s not possible.
In 1962, President Kennedy, talking about the race to put men on the moon, said they chose to do these things “not because they are easy, but because they are hard.”
Yes, making the wealthiest Americans pay off the debt would be difficult, but why should it be impossible? I’m sure that setting up the tax withholding system that takes income and payroll taxes from 146 million American workers before they receive their wages looked complex, but the government made that work.
Multiple US governments grew the debt and gave the money to the wealthiest Americans over decades. It may take decades to reverse it, but where there’s a will, there’s a way.
Of course, for the wealthy there won’t be much will. To their mind, this wouldn’t be fair. No sheep, Sherlock, life isn’t fair. While the top 10% have $127.95 trillion, the bottom 50% of Americans share just $4.28 trillion. Clearly, the $40.41 trillion that was borrowed didn’t find its way to the poorest Americans, though their taxes contribute to paying the interest. Does that seem fair?
More from the wealthy, to try and further muddy the waters. If the US government tried to make the wealthy do their patriotic duty and support the society that supports their wealth and lifestyle, many of them will simply move abroad and take their money with them. Now, even in countries where such capital flight might be a risk, it’s rarely as significant as the wealthy make out, because most people don’t want to move elsewhere.
But it simply isn’t a risk in the US because of the citizen-based tax and exit tax systems. US citizens have to pay the IRS on their income regardless of where they live and anyone renouncing their US citizenship instantly triggers a huge capital gains tax bill. Unlike most Western nations, the US government has wealthy Americans over a barrel. And that ignores the fact they can’t make a run for it with their wealth, because their wealth is illiquid, remember?
However we look at it, making the wealthiest pay back money that the US government has borrowed unnecessarily may be difficult and time-consuming, but it can be done.
So, should the wealthiest Americans pay off the US debt?
What you just read? ☝ Shouldn't more people read it?
Share it now, before you forget
