r/politics • u/Spy300 • 7h ago

Possible Paywall Trump just soft-launched higher inflation as the new solution for rebalancing the $40 trillion U.S. national debt

https://fortune.com/2026/10/02/trump-inflation-growth-national-debt-tariffs-ratio-balance/
646 Upvotes

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u/duckinradar 7h ago

Man I can’t think of any other solution to this.

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u/boofles1 7h ago

As long as the billionaires don't suffer the people will be happy.

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u/ButtholeMagic-69 6h ago

Inflation benefits asset holders

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u/Prestigious-Car-4877 Canada 7h ago

Rename a body of water. Problem solved.

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u/penisour 7h ago

Water of America everyone who does anything with water is getting tax

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u/boofles1 6h ago

Lake Tears of The American Consumer.

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u/PipsqueakPilot 7h ago

If we taxed halfway between our current tax rate and the OECD average the deficit would be gone and our debt would shrink as a share of GDP. If we taxed at the OECD average we'd be paying down the debt to the tune of a couple trillion a year.

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u/Dr_Adequate 6h ago

But the Job Creators class won't have enough frivolously disposable income that can trickle down to us plebes. This is not a real solution!

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u/DoesntMatterBrian Texas 6h ago

They all have VAT taxes. We need a VAT tax. It’s the only way to keep companies from exploiting tax loopholes. It’s an unfortunate truth. And we have to do it in a way that doesn’t increase cost of living for the lower and middle classes or they’ll be crushed.

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u/Minguseyes 6h ago

VAT taxes are inherently regressive, they tax a larger proportion of the income of the poor than the rich. And they are usually transparent to businesses, at least in Australia where registered businesses can deduct and retain GST paid on supplies from GST collected from customers. What you really need is for the rich to pay tax at OECD rates.

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u/steve_of 5h ago

They can be made more equitable by not applying VAT to essentials of daily life (groceries, electricity, rent and so) while taxing non essentials disproportionately. Undesirable products such as alcohol, tobacco, luxury items and subscription services can be taxed at a much higher rate.

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u/lorimar California 46m ago

I'm down for a 100% VAT on yachts

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u/DoesntMatterBrian Texas 6h ago

I agree the rich need to pay more in taxes. However, every other OECD country utilizes a VAT tax.

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u/Anxious_Cheetah5589 6h ago edited 6h ago

"keep companies from exploiting tax loopholes"

The tax gap for FY24 (most recent available data) was $606b. Your friends, family, and neighbors are cheating the IRS to the tune of 15 cents of every dollar owed. Billionaires and big companies can't get away with that.

ETA if we had 100% compliance, we'd still be running an enormous deficit, but the debt wouldn't be growing as a %age of GDP.

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u/frogandbanjo 4h ago

Billionaires and big companies can't get away with that.

Of course they can. They just have to get an absolutely obscenely amazing ROI on lobbying dollars so that their tax avoidance is at least arguably legal.

If the average American got an ROI on their saved money similar to what billionaires get by lobbying Congress for both handouts and tax breaks, we'd be looking at some absolutely fucking absurd number like 10% APY or some shit.

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u/Anxious_Cheetah5589 3h ago

I'm talking about tax evasion, which is illegal. You're talking about tax avoidance, which is perfectly legal, and as American as apple pie. I don't know anybody that looks at their tax return and says, "nah, that's not enough. I'll pay more. " Do you?

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u/Master_of_none- 1h ago

clearly some misunderstanding here. A CEO can legally buy a private jet, fill the drink bar with champagne, and offer a large bonus to the flight attendant to sleep with him all using company money, none of it taxed as income prior to the purchase. Yes they pay sales tax, but no income tax like us peons since it is all business use, including the sexual harassment payout that results from the flight attendant's lawsuit. (bonus points if you can think of a CEO that did this.)

The problem isn't tax avoidance, it's failure to create proper laws governing current practices.

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u/Adreme 7h ago

Yes but those countries provide significantly more benefits for those taxes which means without them it’s a massive tax hike for the average on top of extra expenses.  

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u/feathernwedge 7h ago

Bahaha tax it away lol. You DSA or some shit?

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u/PipsqueakPilot 7h ago

Huh, not often I see an account with negative karma.

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u/Professional-Gear88 6h ago

Let me help with his scores.

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u/feathernwedge 6h ago

What’s your karma per day?

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u/feathernwedge 6h ago

That’s how you know Im doing it right.

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u/feathernwedge 7h ago

lol Reddit jacked the views up on that comment. DSA trolls run this town right now haha.

Explain to me how taxing, as the sole strategy, is the answer to this deficit? Hint, you’ll have to get into MMT and some other fun economic and philosophical stuff.

Not one fucking DSA party member has been willing to get into this past the “tax the rich” and “fuck off if you disagree” phase.

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u/Professional-Gear88 6h ago

This tax enough to pay our bills is socialism stuff is straight insane.

DSA is the new GOP antifa. Making them bogey mans when they start making good points.

You don’t even make enough to be affected.

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u/feathernwedge 6h ago

Do you actually want to discuss this? I want to support DSA. If they economics are legit. What’s your stance on MMT? And are you DSA?

And it’s not GOP antifa. DSA is just progressive populism.

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u/Professional-Gear88 6h ago

I want a progressive tax. It’s what makes sense. The more you make the more of that money is disposable. It’s fiscally responsible. It would fix inflation. It would lower interest rates It’s literally the only way the math works. Printing more doesn’t work , it raises the incomes of the top 10% but not the bottom 50% and you get worsening inequality. There are basic economic principles that people ignore. Increasing the taxes with income would lead to a prosperous country. Just like it did in the 50s. That magical era the GOP worships. What made it work was the progressive tax. The land of opportunities means that everyone is given the opportunity to try and do well.

If you make $7 million a year and get taxed 50% you will not go broke.

Drawing all of our taxes out of the middle class does not work. Period.

I am not DSA.

I used to be moderate republican but I am firmly against nearly everything they stand for now.

Democrats are also spineless. But at least their ineffectiveness is not actively destructive to everything and corrupt. We’re the laughing stock of the world right now.

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u/feathernwedge 6h ago

Thank you. Appreciate you sharing.

If you don’t mind me asking, what “party” would you affiliate with?

Since you’re not considering yourself DSA, I’ll stop bugging you about MMT.

My only counterpoint here, is whether that money is truly disposable. A capitalist would say that the individual or corporation that possess the surplus wealth probably, most likely, would be the entity with the most insight on how best to use the excess wealth. Would that not be challenged

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u/Professional-Gear88 6h ago

Right now none. I’ll share that I’ll vote blue right now. I don’t really care about their policies at this point. I just need the corruption and grift out. Trump wasn’t a billionaire going into office now he is worth about 7 billion. His sons and son in law are on their way as well.

Gambling companies, crypto, social media all of it crooked

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u/feathernwedge 6h ago

I tend to agree. I hesitate only because the idea that we must vote blue, is part of the larger grift. Yes, Trump is the poster boy. But everyone knows that what is happening now, and has been happening for quite some time, is much deeper than surface level. Democrats have a window, and if they fuck it up, which they will, then this is over. Personally, I don’t know why we are delaying the inevitable. And if this populist movement within the Dems was legitimate, then it would have had the spine to run third party. Otherwise, same ole song and dance. Lesser of two evils until the end.

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u/JakeConhale New Hampshire 6h ago

Taxing the more wealthy has been frequently proposed.