The Debate over Expiring Tax Cuts: What about the Deficit?

Source: Adam Looney, Brookings Institution, Hamilton Project, August 11, 2010

From the summary:
As the economy begins to recover from the Great Recession, policymakers must confront the next fiscal challenge: the long-run federal deficit. Over the next ten years, the cumulative deficit is projected to exceed $10 trillion if current budget policies are continued. Addressing the deficit will require extremely difficult and unpopular tradeoffs. Consider that in 2020 federal spending on Social Security, Medicare, Medicaid, defense, and interest on debt will exceed 106 percent of 2020 tax revenues, according to the Congressional Budget Office. Clearly, balancing the budget will require either cutting these valued programs (to say nothing of the rest of federal spending) or raising taxes.

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