You might not like the solution to the debt crisis, but here’s how to fix America’s spending problem

Let’s not sugarcoat this: the national debt is out of control. We all know it, but nobody wants to budget on how to really fix it.

We’re staring down the barrel of almost $37 trillion dollars in debt and an annual deficit projected to be north of $2 trillion dollars a year. Interest payments alone are projected to exceed $1 trillion a year—more than we spend on the defense budget right now. And that means one thing: the American house is on fire, and we can’t keep pretending it’s just a warm fireplace.

As a proud fiscally responsible money guy for the past thirty years, I believe in free markets, personal responsibility, and limited government. But I also believe in arithmetic—and the math is telling us something must give. If we want to preserve American capitalism, keep Social Security and Medicare solvent, and avoid a full-blown fiscal crisis, then yes—we’re going to need more revenue. The question is, where do we get it from every year?

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Do I Like Tax Increases? No. Do We Need One? Probably.

Let’s get something straight. I don’t want to raise taxes. I’d rather see waste cut like we are beginning to do with DOGE, agencies streamlined, and spending brought under control. But after decades of kicking the can down the road, we’ve run out of fresh pavement unless we increase the debt ceiling even more. And that could be even more problematic than we realize if our debt gets downgraded around the world.

If we slashed every discretionary program tomorrow—even if we defunded the IRS, the Department of Education, and every so-called “pork project” in Washington—we’d still be in the red. That’s because the real cost drivers are entitlements and interest. And those aren’t optional—they’re locked in.

So, unless we’re ready to tell our seniors that Social Security checks are getting cut by 20% in ten years (which is what’s coming if nothing changes), we’ve got to increase revenue. 

Not across the board since half of Americans don’t even pay federal taxes. Not on the middle class because they are maxed out. But at the top. It’s painful to say it out loud, but it must happen.

That 37% Tax Rate? It Needs to Go Back to 39.6%

As it stands, the top individual tax rate is now 37%, on annual incomes above $611,000 for single filers and $767,000 for married couples. If Congress fails to act, that rate is set to revert to what it was before the 2017 tax law, 39.6%, on top filers.

It was 39.6% under both Clinton and Obama—and let’s be honest, the economy didn’t collapse back then. In fact, we had booming markets, solid growth, and budget surpluses.

Bumping that rate back up by 2.6% isn’t socialism—it’s reality. What would you rather have, a small tax hike on ordinary income or your back against the wall and capital gain tax rates back to 39.6% which would be devastating on so many levels. The 39.6% is a return to something that worked without destroying the dreams of future entrepreneurs that want to build wealth through building a business. And it’s a way to ask those who have benefitted most from the American system to do what’s necessary to preserve it. Tariffs aren’t going to solve the annual deficit and certainly they aren’t going to make taxes go away.

Let me put it this way: if you’re a conservative millionaire who believes in law, order, national defense, capitalism, and protecting the dollar, what exactly do you think happens when the U.S. defaults on its obligations or interest rates skyrocket?

This isn’t about punishment—it’s about preservation.

Time to Fix the Social Security Tax Too

Here’s another one most people don’t like to talk about: the cap on Social Security taxes.

Right now, Social Security tax stops at $176,100 of income. That means a guy making $60,000 pays the full tax on every dime, while a family making $6 million pays on less than 3% of their income.

That’s not free market. That’s a broken system.

Medicare taxes apply to all income—what about raising Social Security wage base from $176,000 to even $1,000,000 of income? If we simply applied the Social Security tax to a higher level of wages (not investments, just wages), it would help keep the program solvent for generations. That’s good for America and good for helping those at the bottom and the top do even better.

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Conservatives Fix Problems—We Don’t Ignore Them

The Republicans are the party of fiscal responsibility, right? They are the ones who say, “You can’t spend what you don’t have.” So how can we ignore the massive the debt crisis staring us in the face?

If Republicans hide from the truth today, Democrats will eventually win back control and push through much more aggressive tax hikes with all the political ammo to do it. But if Republicans lead with common sense reforms now—like restoring the 39.6% rate and raising the Social Security wage cap—they will protect the middle class, stabilize our fiscal future, and keep the economy humming.

Final Thought: This Is How You Save Capitalism

If you really love this country—and I know you do—then you must ask: what’s the plan? Because “cut taxes and grow our way out” hasn’t worked in 40 years. We’ve tried it.

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Preserving the American Dream means making some smart, targeted moves now—so we don’t lose everything later. Slightly higher taxes on the ultra-rich, and fairer contributions to Social Security, may be the medicine we don’t like (and trust me I’ll be paying and not liking it)—but we’ve got to take it before the patient dies.

And this is not a liberal idea. That’s common sense.