A US Federal Budget Chartbook
For some people, their pulse beats faster when their favorite sports team wins, or their favorite musician drops a new album. For others, pulse and respiration accelerate when confronted with “Spending, Taxes, and Deficits: A Book of Charts.” If you (like me) are in this second category, Jessica Riedl has got your back (Brookings Institution, … Continue reading A US Federal Budget Chartbook The…
Jessica Riedl's book, "Spending, Taxes, and Deficits: A Book of Charts," provides a visual representation of the United States' federal budget. The book highlights key facts, such as the federal debt reaching its highest level as a percentage of GDP, the per-household debt amount, and the trajectory of interest payments. Since the early 2000s, tax cuts, increased spending on Social Security and Medicare, and higher interest payments have contributed to the current budget path.
The share of federal spending on Social Security and Medicare has surpassed defense spending. The book suggests that addressing the insolvency of Social Security and Medicare could alleviate the mounting debt. While Riedl leans towards reducing tax increases, she also acknowledges the potential benefits of revisiting tax burdens similar to those in the early 2000s.
Additionally, she points out that the welfare states in Europe are funded through value-added taxes and higher payroll taxes, rather than relying on high taxes on income and wealth, as is the case in the United States.
Written by urgent.news from Conversable Economist's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
