If you’re hoping that tax hikes on the rich will solve America’s debt crisis, you’re overestimating the power of the wealthy.
President Obama’s budget proposal would raise taxes on upper-income earners by $969 billion over the next 10 years, yet the federal debt would continue to explode. To boost government revenues further, he’d raise an additional $122 billion from multinational firms, $90 billion from banks, $37 billion from oil companies, and $24 billion from hedge funds and private-equity firms. All told, that’s nearly $1.2 trillion. And it would barely make a dent. We’d still have huge deficits, and the national debt would keep growing.