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Lost tax revenue on rents could fund higher U.S. defense spending, Brad Setser notes
Brad Setser argues that the tax revenue lost from rental income in the U.S. is significant enough to support a sizable increase in the U.S. defense budget.
He emphasizes that these missed funds represent real money that could impact federal spending priorities.
Setser has previously tracked major cross-border financial trends, detailing a sharp decline in China’s U.S. agency holdings as Canada and Europe raised their exposure. He has also called for clearer sourcing in analyses of Chinese cross-border financial flows. His recent comments on tax revenue continue his focus on U.S. fiscal and financial data.
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