Hiking Taxes to Balance the Budget Would Require Doubling Tax Rates

The costs of Medicare, Medicaid, and Social Security are rising substantially. Paying for this spending solely through federal income tax increases would require more than a two-fold increase of current tax rates, even for the lowest tax bracket.

MARGINAL INCOME TAX RATES

Hiking Taxes to Balance the Budget Would Require Doubling Tax Rates

Source: Congressional Budget Office.

Entitlement Spending Will Nearly Double by 2050
Tax Revenues Devoured By Medicare, Medicaid, and Social Security in 2045
Medicare Adding to Federal Deficits Faster than Other Government Spending Programs
Social Security Deficits are Permanent and Growing
Without Entitlement Reform, Federal Spending Will Exceed 40 Percent of the Economy by 2050
Discretionary Spending Cuts Alone Will Not Balance the Budget
Even Eliminating Defense Spending Completely Would Not Balance the Budget
Letting Tax Cuts Expire Will Not Balance the Budget
Balancing the Budget Without Cutting Spending Would Cause Taxes to Skyrocket
Hiking Taxes to Balance the Budget Would Require Doubling Tax Rates
Taxing the Wealthy to Balance the Budget Will Not Work
Government Policy Reform Needed to Keep Spending Low and End Deficits Without Raising Taxes

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BACKGROUNDER ON JUNE 27, 2008 CBO's Warning on Raising Taxes to Pay for Medicare, Medicaid, and Social Security

ISSUE BRIEF ON APRIL 04, 2012 Taxmageddon: Massive Tax Increase Coming in 2013

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Hiking Taxes to Balance the Budget Would Require Doubling Tax Rates

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