Public debt has often been viewed as a major unequalising factor raising a string of controversies and serious objections against credit-financed policies through history. This paper assesses the relevance of public debt, and especially its tax burden in perpetuating wealth inequality. I find that public debt is a rather regressive instrument with potentially severe cost to wealth inequality. This is because of its equivalence to a regressive wealth tax that roots to the crowd-out of physical capital and not necessarily on tax progressivity. When interest rates are low, although the unequalising effects of public debt are found to be minimal, the cost to wealth inequality may still be severe if public debt increases wages. Relatedly, the paper discusses a set of conditions that can contain the negative consequence of public borrowing on wealth inequality or have downward effects. Finally, the study concludes its analysis with a brief discussion on normative issues where it argues that a rise of public debt is unlikely to improve the welfare of the working class - “poor”- when interest rates are low.