We Don’t Have A “Spending Problem” We Have A “Taxing Problem”
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A Spending Problem?
For decades, Republicans have sold the idea that the U.S. has a spending problem. But the reality is more complicated—and more political. Since the Reagan era, tax cuts have been a cornerstone of conservative economic policy. The promise was simple: cut taxes, spur growth, and balance the budget. But what’s actually happened is a pattern of deep tax reductions paired with little to no corresponding cuts in bloated spending programs, especially in defense and security.
As a result, the federal government has run consistent deficits. And over time, the interest on that growing debt has ballooned into a major line item—one of the fastest-growing expenses in the federal budget. It’s not that we’re spending outrageously more; it’s that we’ve refused to maintain the revenue needed to pay for what we’ve committed to.
In short, we’ve let decades of under-taxation pile up. The U.S. doesn’t lack the resources to pay its bills—it lacks the political will to tax responsibly. Until that changes, we’ll keep pretending the problem is about spending, when it’s really about revenue.
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Examples Of Efficient Taxation
Throughout American history, several presidential administrations have implemented high tax policies, particularly targeting the wealthy, often during or after periods of national crisis when public support for shared sacrifice was high.
One of the most notable periods was under President Franklin D. Roosevelt during the New Deal era. Facing the Great Depression, FDR implemented steep progressive income tax rates, with top marginal rates exceeding 90% by the 1940s. Roosevelt framed taxation not only as a revenue necessity but also as a patriotic duty. He promoted the idea that the wealthy had a moral obligation to help rebuild the country and protect democracy. Public sentiment, shaped by widespread economic hardship, made it politically viable to tax high incomes aggressively.
Another significant example was during World War II under both Roosevelt and his successor, Harry S. Truman. The war effort demanded massive federal spending, and the government introduced payroll withholding and expanded the income tax base to include more Americans. The extremely high top tax rates remained justified by the urgency of wartime needs and were often accompanied by government messaging about unity, sacrifice, and responsibility. The wealthy were convinced—or compelled—through a mix of patriotic appeals and wartime necessity.
In the post-war era, especially under Republican President Dwight D. Eisenhower, the high top marginal tax rates remained in place (above 90%) throughout the 1950s. Eisenhower, despite being fiscally conservative, did not reduce these rates, believing they were necessary to pay down war debt and invest in national infrastructure, such as the Interstate Highway System. The general postwar consensus, reinforced by strong economic growth and Cold War priorities, made it politically feasible to maintain these rates without significant backlash from the wealthy.
These administrations succeeded in part because they paired taxation with a clear narrative of national purpose—whether recovery, war, or infrastructure—and cultivated a sense of civic responsibility that resonated across class lines.
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Crumbling Infrastructure
It’s been almost 75 years since the country has implemented high top marginal tax rates. That is a shockingly large amount of time and considering the amount of debt the country has accumulated funding various different wars, its about time for politicians to consider re-implementing it.
Today, America faces a different kind of crisis—crumbling infrastructure, aging public systems, and growing inequality. Roads, bridges, transit networks, and water systems across the country are deteriorating, while newer challenges like climate resilience and digital infrastructure demand urgent investment. Yet the political will to raise taxes, particularly on the wealthy, has waned. Decades of tax cuts have hollowed out federal and state revenues, leaving essential projects underfunded and long-term stability at risk.
If history has shown us anything, it’s that high taxation—when tied to a shared national mission—can be a powerful tool for progress. Just as previous generations rose to meet the challenges of economic collapse and global war through bold fiscal policy, we too must confront today’s structural problems with the same seriousness. Reinstating higher taxes on top earners is not about punishment; it’s about ensuring the sustainability of the systems that underpin American prosperity. Without serious reinvestment, funded by those most able to contribute, the foundation of the country will continue to erode.
