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Spending-Only Options
- To put the debt on a sustainable path for 75 years through spending policies alone (so debt did not exceed current percentages of GDP) would require an across-the-board cut in noninterest outlays of 31%.
- If Social Security and Defense were excluded, other spending would have to cut by about 50%.
Revenue-Only Options
- To put the debt on a sustainable path for 75 years through revenue policies alone would require an across-the-board increase in revenuesof 44%.
- If revenues were raised only on high-earners (above $200K/$250K), the Tax Policy Center estimates that the top tax rates would be above 90%.
Source: Congressional Budget Office (June 2011); Tax Policy Center (January 2010). Calculated by PGPF.
Related Charts:
Understanding the August 2011 Debt Deal
Stabilizing the Debt Will Not Be Easy: The Size of the Problem
2011 Fiscal Summit: Different Options for Spending Composition in 2035
Social Security: Policy Options
Fiscal Commission Tax Proposal
Peter G. Peterson Foundation Chart Pack:
The PGPF chart pack illustrates that budget-making involves many competing priorities, limited resources, and complex issues. In this set of charts, we aim to frame the financial condition and fiscal outlook of the U.S. government within a broad economic, political, and demographic context.
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