Here’s
a little more on the Debt issue from the CATO institute at http://www.cato-at-liberty.org/cbo-report-reveals-spending-disaster/
They
point out that over the last 40-yrs federal revenues have been around 18% of
GDP. Bill Clinton was able to balance
the budget on revenues of 18-19% of GDP.
The
recession and high un-employment exacerbate the Debt because revenues drop
during the recession. The Blue column
shows revenues of only 15% GDP in 2011
The
Congressional Budget Office projects that by 2021, revenues will again reach
the typical 18% of GDP value.
Spending
projections in Red show the problem is on the spending side.
I
think you can make an argument for increased taxes until the economy becomes stronger;
then you could reduce taxes to hold revenues at 18%, based on past history. Either way the cuts required to balance the
budget are huge.
