The top 1% pay a significant share of all federal taxes, while also benefitting disproportionately from preferential tax treatment. (fb)

Moody’s says that the United States is in fiscal deterioration, with a new report warning that government policy decisions in the near term could contribute to higher interest rates and worsening #NationalDebt. Moody’s first lowered its outlook on the U.S. credit rating from “stable” to “negative” in November 2023, due to: • Debt affordability — rising interest rates have caused the cost of financing the debt to rapidly increase. Furthermore, without policies in place to address the underlying drivers of the debt, Moody’s anticipates that federal deficits will remain very large. • Political polarization — which will complicate the ability of policymakers to enact solutions to the nation’s fiscal challenges. Moody’s mentioned recent examples of polarization leading to an inability to govern. (fb)