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CHINA (PICTURED ABOVE) IS NOW THE WORLD'S NUMBER ONE ECONOMY
THE U.S. IS NO LONGER NUMBER ONE
IT IS TIME THAT WE ENCOURAGED INVESTMENT, LIKE EVERY OTHER MODERN ECONOMY
HERE ARE SOME IDEAS ON WHAT NEEDS TO CHANGE
Today America is no longer number one.
China has the world's largest economy when measuring purchasing power parity, which is a complicated term for measuring things by compatible prices. How did this happen? It's really not all that mysterious. America has the most anti-investment tax code of any modern state, while China has a tax code that encourages investment.
Now taxes aren't the only reason for America's sorry state. Spending $8.5 trillion on failed wars certainly didn't help in the last 20 years. However, taxes are a very critical part of what's going on.
America is the only modern state that does not have a consumption tax. Every modern state has a value added tax. Meanwhile, America has among the highest capital gains and estate taxes in the world. Things aren't looking good. The trends are going in the wrong direction. Many people think that the trade situation was corrected by the rhetoric of former president Donald Trump, and some of the policies of President Biden. This is totally wrong. The trade situation deteriorated under Trump and hit an all time low under Biden, and there really aren't any signs that this is getting any better.
These are long term trends and they're not going to be reversed until America reverses its tax policies. We have talked to many members of Congress and we have been told that a U.S. consumption tax is not politically realistic. We disagree, but this is a reality that needs to be considered. As such it is all the more important to lower U.S. capital gains and estate taxes. It is time for creative thinking such as creating individual savings accounts where people could sell stock without a capital gains tax while keeping it in the savings account. This is a basic question of arithmetic. Things aren't going to get better until U.S. tax priorities are changed.
CHINA
China is the World's Number One Economy (World Future Fund)
DISASTROUS U.S. FOREIGN DEBT AND TRADE SITUATION
Investment, Savings and International Debt (World Future Fund)
The American Trade Disaster (World Future Fund)
The World's Largest Net Debtors and Creditors EFA (Earth Future Action)
International Investment Position (Bureau of Economic Analysis - US Department of Commerce)
FEDERAL DEBT
America's Budget Deficit (World Future Fund)
United States Gross Federal Debt to GDP (Trading Economics. 2022)
Excel Sheet for U.S. Federal Debt As a Percent of GDP 1940-2027 (Source: The White House OMB)
TOTAL U.S. DEBT PUBLIC AND PRIVATE
Total US Debt as a Percent of GNP (World Future Fund)
Total U.S. Debt Across All Sectors 2021 (Statista)
Where Is The Debt? A Breakdown Of US Debt To GDP (Seeking Alpha)
CAPITAL GAINS TAX RATES
Capital Gains Tax Rates (World Future Fund)
International Capital Gains Tax Rates (Tax Summaries PWC)
U.S. Capital Gains Tax Rate 1954 - 2020 (Tax Policy Center)
U.S. Historical Capital Gains Tax Rates (Wolters Kluwer)
ESTATE TAX RATES
Estate and Gift Tax Rates (World Future Fund)
Charts Related to Estate Tax Debate (World Future Fund)
List of countries by inheritance tax rates (Wikipedia)