Swagel, Phillip. “The Economic Effects of Waiting to Stabilize Federal Debt.” Congressional Budget Office, https://www.cbo.gov/publication/58055.
Direct Quote: In the benchmark economy used in this analysis—an economy in which no stabilization policy is enacted—income tax revenues and benefit payments rise over the 2021–2051 period and peak at 10.3 percent of GDP and 14.5 percent of GDP, respectively. If stabilization began in 2026, income tax revenues would rise as high as 11.9 percent of GDP and benefit payments would fall as low as 11.1 percent of GDP by 2035.
Summary/My Interpretation: As the debt continues to rise, one potential impact that has many worried is how the figure will affect the amount of taxes people pay. Specifically, many believe that if the government doesn’t take immediate action to combat the debt, it will lead to higher taxes for all US citizens. In fact, experts believe that if action is not taken, taxes will outpace the benefits they provide.
How I Plan To Use This In My Project: In my previous research, I proved that a ballooning debt holds the potential to raise taxes among US citizens. I hope to use the article above as a way to quantify what this figure will look like. By specifically providing a quantification for how much taxes increase, it will cause people to become more invested in the issue as tax raises often lead to a large public response.
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