Tag Archives: federal deficit

Do higher marginal tax rates materially increase federal revenue? Behavioral responses among high-income taxpayers, the impact of enforcement capacity on compliance, and other implications of restoring pre-2017 tax rates all affect the results. The discussion highlights how income adjustments and structural deficits may limit the effectiveness of rate increases. With annual federal deficits exceeding one trillion dollars in recent years, constrained revenue elasticity, combined with elevated spending, could affect investor confidence and long-term demand for US dollars.

Our economic situation is vastly misunderstood and the future adverse consequences of this misunderstanding can not be understated. To highlight the tenuous situation I present below 10 charts on the economy that highlight the "atypical" nature of our economic situation a full 73 months after the official June 2009 end of the recession. To say there is much “on the line” here would be a complete understatement.

It is appropriate that the fiscal crisis of the West has begun in Greece, the birthplace of Western civilization. Soon it will cross the channel to Britain. The key question, however, is when that crisis will reach the last bastion of Western power, on the other side of the Atlantic. Words: 609