Forty years ago, wealthy Americans financed the U.S. government mainly through their tax payments. Today wealthy Americans finance the government mainly by lending it money. While foreigners own most of our national debt, over 40 percent is owned by Americans – mostly the very wealthy.
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Over that four decades, tax rates on the very rich have plummeted. Between the end of World War II and 1980, the top tax bracket remained over 70 percent — and even after deductions and credits was well over 50 percent. Now it’s 36 percent. As recently as the late 1980s, the capital gains rate was 35 percent. Now it’s 15 percent.
via robertreich.org
Whether or not one agrees with Reich's assessment that "a tax increase on the super rich must be part of any budget agreement," the shift (or "switch," to use Reich's term) is an interesting one historically. The switch Reich describes can't be denied, but it is almost certainly part of a larger historical narrative. (What other economic changes were happening during those 40 years? Obviously, many! And which are relevant to the relationship between the power of the wealthy and the power of the state? Almost certainly several.)
Also, it may be fair to ask, which gives the republic's wealthiest citizens the greatest power or least threatens them: for the government to use them as a means of financing or as a means of revenue? And which one, if either, is more a matter of the rich using the government than the government using them?