What's the biggest amount of money the U.S. government could raise on short notice?

[ftg]

@Little_Nemo

The national debt is currently around twenty-four trillion dollars. Let’s say we raised the total amount of taxes from three trillion a year to four trillion. A big jump but not impossible. And then we apply that extra trillion every year to reducing the debt. It’ll be gone within twenty-five years.

You’re forgetting the accumulating interest on the debt. It’s going to take longer than you think. (Basically at least a doubling with even lowish interest.)

[Saint_Cad]

@Little_Nemo

It’s unlikely we would ever get to the point of a 100% tax.

But I didn’t say 100% taxation did I? I said the maximum of the Laffer Curve which is decidedly NOT 100%.

[Hellestal]

@rbroome

The Fed already owns the equivalent of ¼ of the US economy:
https://money.usnews.com/investing/news/articles/2020-04-09/explainer-what-the-federal-reserve-has-done-in-the-coronavirus-crisis

It doesn’t seem impossible for the Gov’t to double their holdings.

The Swiss National Bank’s balance sheet is almost 120% of Swiss GDP.

[Little_Nemo]

@Saint_Cad

But I didn’t say 100% taxation did I? I said the maximum of the Laffer Curve which is decidedly NOT 100%.

I don’t think you’re going to find two economists who will even agree on what the Laffer curve looks like, so you’re not going to find a consensus on any projections based on it. But the tax rates I mentioned were 14% and 19%. I think most people would agree that those are below any theoretical maximum.

[ftg]

@Saint_Cad

But I didn’t say 100% taxation did I? I said the maximum of the Laffer Curve which is decidedly NOT 100%.

The Laffer Curve is one of the least respected notions in Economics. Which, given this is Ecnomics, says a lot. It oversimplifies an immense number of factors. It appeals to people who have an attitude towards simplification similar to Flat Earthers.

[Saint_Cad]

@ftg

The Laffer Curve is one of the least respected notions in Economics. Which, given this is Ecnomics, says a lot. It oversimplifies an immense number of factors. It appeals to people who have an attitude towards simplification similar to Flat Earthers.

The idea behind what I said was assuming the government set up the perfect theoretical tax structure to maximize revenue.

[Mark_Finn]

During WW1 and WW2, governments raised money by selling “war bonds” and other such devices. I guess - if interest rates were more attractive - they could sell “COVID-19 bonds” (or some such name).

[Darren_Garrison]

@Alley_Dweller

Back in 2013 when the Republicans were playing games with the debt limit, an unofficial proposal to bypass the debt ceiling was floated that involved minting trillion-dollar platinum coins. This was necessary at the time because of the debt ceiling. This artifice would not be required for your hypothetical because, hopefully, Congress would raise the debt ceiling at the same time it passed the proposed law and the Treasury could simply issue bonds in an equivalent amount.
The Treasury Has Already Minted Two Trillion Dollar Coins

Hey, look what’s back:

Rashida Tlaib wants everyone, including noncitizens, to get $2,000 a month...

Personally, I think they should mint a trillion $1 coins. And fund that with a single bazillion dollar coin made from adamantium.