Jessica Reidl: Even Siezing All the Wealth From America's 800 Billionaires Wouldn't Fix the Deficit

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But we must acknowledge the mathematical reality that our budget deficits have grown so enormous that tax-the-rich policies can't close more than a tiny fraction of them. And also, that much of Europe long ago learned the hard way that going overboard on wealth taxes and steep top income and corporate tax brackets can backfire on the economy. That's why their (non-VAT) tax codes have moved closer to ours. A slow-growing economy can't produce enough revenues to cut its deficit no matter how high its tax rates are. We need higher revenues in the least economically damaging way possible. And yes, if we want to stabilize the debt, that means middle-class taxes will have to rise—and federal spending must be significantly pared back. This includes major spending reforms to Social Security and Medicare's staggering 30-year cash shortfall of $124 trillion.

Neither political party is suicidal enough to tell middle-class voters that their taxes and benefits must also contribute heavily to reining in runaway deficits. So we comfort ourselves with the wishful thinking that millionaires and billionaires can take the entire burden off our hands. But beyond the empty rhetoric, you will never see a specific, fully scored proposal to eliminate most of the long-term deficit by taxing the rich—because mathematically, it's just not possible.