National Debt Drivers
PolitiFact claims that “tax cuts were the biggest of four types of legislation that have added to the federal debt since 2001.”
IN FACT, PolitiFact uses a study that puts all tax cuts into one bucket while splitting added spending into 3 buckets. Putting the added spending into one bucket, the study shows that it accounts for 61% of the added debt.
Furthermore, most “tax cuts” are actually “tax evens” that correct for bracket creep, which consumes an ever-growing share of people’s incomes over time. That’s why despite the passage of numerous “tax cuts,” the portion of the U.S. economy consumed by federal taxes has been roughly level for 8 decades.
Meanwhile, the portion of the U.S. economy consumed by federal spending has grown from 3% in 1930 to 23% in 2023 — almost entirely due to social programs:
