Abstract
This PowerPoint presentation reviews the fiscal picture of the United States in light of the resolution of the "fiscal cliff" controversy. The presentation argues that, while long-term trends in mandatory spending (entitlements programs) must be addressed directly, any meaningful modifications of these programs of necessity will be phased in very slowly, and in the meantime the large deficits that the United States will incur must be financed. The presentation demonstrates that over a 10-year horizon (the standard Congressional budget window), further government spending cuts are unrealistic, and tax revenues must rise to finance government operations. If one rules out new taxes (VAT, carbon tax), then the most efficient sources of additional tax revenues are tax expenditures — in particular, personal itemized deductions.
Disciplines
Law | Law and Economics | Law and Society | Legislation | Tax Law
Date of this Version
2-14-2013
Recommended Citation
Edward Kleinbard, "Why Tax Revenues Must Rise" (February 2013). University of Southern California Law and Economics Working Paper Series. Working Paper 159.
http://law.bepress.com/usclwps-lewps/159
Included in
Law and Economics Commons, Law and Society Commons, Legislation Commons, Tax Law Commons