Hi All

As of March 2025, the United States national debt stands at approximately $36.218 trillion. This figure represents 122% of the country’s Gross Domestic Product (GDP).

The current state of the US national debt raises concerns about the country’s financial solvency. Several factors have contributed to this situation.

One of the key factors is the low tax rates for middle-income and high-income earners in the United States. For instance, an individual with a taxable income of $AU180,000 in Australia would pay $AU51,000 in taxes (excluding the Medicare levy). Conversely, a person with a taxable income of $US113,000 (equivalent to $AU180,000 in Australian dollars) in the United States would pay $US20,000, resulting in a tax rate of only 18%. This represents a significant reduction of approximately 38% compared to Australia.

The United States cannot escape its current financial situation without implementing either increased taxes or inventing unrealistic solutions for others to bear the burden. Alternatively, they could introduce a payment method that is not transparent. Consequently, the imposition of tariffs has become a necessary measure to address these challenges. 

IRS rates can be found at https://www.irs.gov/filing/federal-income-tax-rates-and-brackets

Australian tax rates can be found at https://www.ato.gov.au/tax-rates-and-codes/tax-rates-australian-residents

At some point, the fantasy will dissipate, leaving only the reality of tax increases. It is likely to become challenging.

My recommendation is to minimise our involvement in these matters.

Please sign my petition

https://www.aph.gov.au/e-petitions/petition/EN7265

Regards

Mike Boyd