In America, Spending Cuts Are Driven by the Rich


Over at the Monkey Cage, Larry Bartels presents the remarkable chart on the right. Its message is simple: In most affluent countries, there’s net support for government spending cuts, but it doesn’t depend much on income. Not only is the level of support modest, but it’s the same among rich and poor.

But not in America. Here, demand for spending cuts is driven almost entirely by the well-off:

What accounts for the remarkable enthusiasm for government budget-cutting among affluent Americans? Presumably not the sheer magnitude of redistribution in the United States, which is modest by world standards. And presumably not a traditional aversion to government in American political culture, since less affluent Americans are exposed to the same political culture as those who are more prosperous. A more likely suspect is the entanglement of class and race in America, which magnifies aversion to redistribution among many affluent white Americans.

….The U.S. tax system is also quite different from most affluent countries’ in its heavy reliance on progressive income taxes. The political implications of this difference are magnified by the remarkable salience of income taxes in Americans’ thinking about taxes and government….Income taxes seem to dominate public discussion of taxes and tax policy. For example, years of dramatic political confrontation culminated in a grudging agreement to shave a few percentage points off the Bush tax cuts for incomes over $400,000 per year; meanwhile, a major reduction in the payroll taxes paid by millions of ordinary working Americans expired with barely a whimper.

It’s no surprise that spending cuts are popular in other countries: most of them spend a lot of money, and they fund it with high tax rates on just about everyone. But that’s decidedly not the case in the United States. Our government spending is relatively low and so are our tax rates. But none of that matters. Rich Americans don’t like paying taxes, and as we know from multiple lines of research—in addition to plain old common sense—the opinions of the rich are what drive public policy in America. Add in longstanding grievances against providing benefits to people with darker skins, and you’ve got a big chunk of the middle class on your side too. This works great for the rich. For the rest of us, not so much.

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WHO DOESN’T LOVE A POSITIVE STORY—OR TWO?

“Great journalism really does make a difference in this world: it can even save kids.”

That’s what a civil rights lawyer wrote to Julia Lurie, the day after her major investigation into a psychiatric hospital chain that uses foster children as “cash cows” published, letting her know he was using her findings that same day in a hearing to keep a child out of one of the facilities we investigated.

That’s awesome. As is the fact that Julia, who spent a full year reporting this challenging story, promptly heard from a Senate committee that will use her work in their own investigation of Universal Health Services. There’s no doubt her revelations will continue to have a big impact in the months and years to come.

Like another story about Mother Jones’ real-world impact.

This one, a multiyear investigation, published in 2021, exposed conditions in sugar work camps in the Dominican Republic owned by Central Romana—the conglomerate behind brands like C&H and Domino, whose product ends up in our Hershey bars and other sweets. A year ago, the Biden administration banned sugar imports from Central Romana. And just recently, we learned of a previously undisclosed investigation from the Department of Homeland Security, looking into working conditions at Central Romana. How big of a deal is this?

“This could be the first time a corporation would be held criminally liable for forced labor in their own supply chains,” according to a retired special agent we talked to.

Wow.

And it is only because Mother Jones is funded primarily by donations from readers that we can mount ambitious, yearlong—or more—investigations like these two stories that are making waves.

About that: It’s unfathomably hard in the news business right now, and we came up about $28,000 short during our recent fall fundraising campaign. We simply have to make that up soon to avoid falling further behind than can be made up for, or needing to somehow trim $1 million from our budget, like happened last year.

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