Monday, November 11, 2013

The Tax Foundation gets it right

How Fast Would the Economy Need to Grow in Order to Close the Deficit?
The economy needs enough growth to generate taxes and pay the bills. The big bill is the interest expense, which goes up faster than growth. In other words, this chart shows the DC budget is impossible under any circumstances that include current DC obligations. We are not good enough to generate 7% annual growth, have never really done that for any length of time.

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