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Tax hikes alone won't fully address US debt, report finds
The group said even a 5% value-added tax would not cover the primary deficit as entitlement costs and interest payments keep rising.
- The Tax Foundation report, 'Can Tax Reform Solve the Debt Problem — or Just Slow It?', found that even the largest tax increases fail to close the primary deficit over the long run.
- Social Security and Medicare, which make up 48% of the federal budget this year, are projected to surpass 50% by 2032, driving unsustainable debt growth.
- After modeling nine tax proposals, the report warned that tax hikes "would create large economic distortions; reduce jobs, wages and standards of living; and yet still fail to put the debt trajectory on a sustainable course."
- Will McBride, the Tax Foundation's chief economist, told The Center Square that Congress must reduce entitlement costs while pursuing tax reform to more efficiently collect revenue and spur economic growth.
- By 2056, the Congressional Budget Office projects federal debt will reach 175% of GDP, up from about 101% today, as interest costs alone consume nearly a quarter of the entire budget.
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U.S. Spending Outpaces Wealth Taxes, Tariffs, and Rate Hikes: Report
No tax proposal before Congress would be sufficient on its own to put the federal debt on a sustainable long-term path, according to a new report from the Tax Foundation that finds spending on programs such as Social Security and Medicare is projected to outpace revenues for decades. The report, "Can Tax Reform Solve the Debt Problem – or Just Slow It?", released in April by the Washington-based Tax Foundation, simulated nine major tax proposals…
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Tax hikes alone won't fully address US debt, report finds
(The Center Square) – No tax proposal before Congress would be sufficient on its own to put the federal debt on a sustainable long-term path, according to a new report from the Tax Foundation that finds spending on programs such…
·Key West, United States
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Leaning Left1Leaning Right4Center2Last UpdatedBias Distribution57% Right
Bias Distribution
- 57% of the sources lean Right
57% Right
14%
C 29%
R 57%
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