How big a tax increase would be needed to close the gap? Well, huge. To put things in perspective, all federal taxes (income, payroll, and excise) averaged 18.1 percent of GDP from 1970 to 2009. Under CBO's assumptions about Obama's policies, taxes in 2020 would already be slightly higher, at 19.6 percent of GDP. But on top of that, there'd need to be a further tax boost approaching a third to balance the budget, because spending is projected at 25.2 percent of GDP. Needless to say, this would be the largest tax burden in U.S. history, even including World War II.
Although there's one interesting point. They portray the deficit as under 'President Obama's policies.' I guess it's not Bush's fault for ObamaCare spending and union handouts-- unless he's really engineering things from behind the scenes to discredit the current president.
Bookmark our site!
Consider advertising on our site!