Federal Budget in Pictures

Heritage Foundation

Balancing the Budget Without Cutting Spending Would Cause Taxes to Skyrocket

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America is running massive deficits, and a balanced budget requirement is often considered a way to rein in red ink. Without serious entitlement and spending reforms, the level of taxes required to balance the budget would reach economically stagnating levels.

PERCENTAGE OF GDP

Balancing the Budget Without Cutting Spending Would Cause Taxes to Skyrocket

Source: Heritage Foundation calculations based on Congressional Budget Office data (Alternative Fiscal Scenario).