The Democratic Socialists of America (DSA) are advocating for a significant increase in federal government spending on various programs, with estimates suggesting a staggering $200 trillion over the next ten years. This ambitious plan follows a series of electoral victories for the DSA, from Congress to the recent election of New York City Mayor Zohran Mamdani. If implemented, this spending spree could push government expenditures to around 57% of the GDP, as estimated by the Cato Institute, a libertarian think tank.
To put that in perspective, in 2025, US government spending was around 33.8% of GDP.
The DSA argues that funding for their expansive social initiatives will come through “aggressive wealth taxes on the richest individuals and corporations.” However, the report indicates that such taxes would only cover a fraction of their ambitious proposals.
Report author Adam N. Michel criticized the DSA’s approach, stating, “They’re promoting a larger government while suggesting it won’t cost the average person anything. Mathematically, that doesn’t add up.”
Some of the most expensive initiatives the DSA aims to pursue include universal healthcare, projected to cost between $39.9 trillion and $75.4 trillion over the next decade; reparations for slavery, estimated at $13.5 trillion to $28 trillion; and a federal jobs guarantee, which could run between $4.4 trillion to $60.4 trillion.
If the high-end projections are accurate, government spending could balloon to an astonishing 92% of GDP, according to the Cato Institute.
Michel added, “It’s difficult to grasp. It resembles Soviet-style communism more than the welfare states we see in Europe.”
Covering the DSA’s proposed agenda would necessitate doubling federal revenue at the minimum, or potentially quadrupling it at the maximum, in addition to a projected $24 trillion deficit over the next decade already anticipated by the Congressional Budget Office.
The DSA often asserts that the ultra-wealthy and corporate profits will foot the bill for their expansive programs. However, the figures do not seem to support this claim.
The wealth of the 400 richest Americans reached $6.6 trillion in 2025, and taxing their entire net worth would only fulfill about 9% of the lower estimate required and merely 3% of the upper estimate. Meanwhile, projected corporate profits after taxes are around $35 trillion for the next decade, which would only cover about half of the low-end projection and 17% of the high-end.
Megan Romer, the DSA’s national co-chair, encountered difficulties when trying to explain how they would “tax the rich” to fund their initiatives in a recent interview. When pressed for specifics on what “taxing the hell out of them” meant, Romer stammered and struggled to provide a clear answer.
“Well, what does that actually entail?” asked David Remnick, the editor conducting the interview, highlighting the ambiguity of their message.
Romer responded hesitantly and seemed caught off guard by the question. “So, it’s democracy, right?” she said, attempting to pivot back to broader themes while avoiding the specifics.
Ultimately, the DSA’s plan remains a contentious topic, filled with ambitious promises but uncertain details on how to finance it all.
