Sounds like a steep cliff to me

[PonoBill]

Wow, that clock is spooky.

15.5 trillion eh? That's what I get for pulling numbers out of my head. I wonder when that 13 trillion number got stored. I bet the US population isn't 300 million anymore either. Damn.

[Admin]

Wow, that clock is spooky.

Right?  Did you find the Time Machine function at the top?  Our taxes as a percentage of GDP were 20.6% in 2000 at the end of Clinton and have dropped to 15.6% now.  In that period (Bush/Obama) the debt tripled. 

[JeanG]

Overall taxes are about 26% including state and local.

The political problem is that the rich are not able to provide much more revenue to the state. With high incomes already taxed near or over 50% in the most popular states and a high corporate tax rate, there isn't much more to take.

European nations fill their coffers with taxes from the middle and lower class earners. A 20% EU style sales tax (VAT) will close the gap quickly. If the US budget situation gets to a crisis, a VAT may enter play.

Until a crisis occurs, most likely in the form of high interest rates for US governmental borrowing, I doubt much of consequence will happen. This makes it more likely, in my mind, that a regressive VAT will be instituted at some point.

The Nordic nations have amongst the most regressive taxation regimes in the world - overall taxes on the wealthy are mostly equal to popular US states, whilst taxes on the poor and middle class are far, far, far higher. Most Nordic nations have 25% VATs! Not to mention massive taxes on fuel and alcohol. All three of these (VAT, fuel, alcohol taxes) are extremely regressive taxes of the poor and middle classes.

[SEA]

SS Liability 16 trillion,   prescription drug liability 21 trillion,  Medicare liability 84 trillion  =  US unfunded liability 121 trillion !!  US national debt 16 trillion . 

How will this be paid down in 15 years ??  at 6% increase in taxes.  IF we don't spend another dime , maybe we can pay the public debt. However long term liabilities are unpayable  !! We are at 3.5 trillion spent this year in the federal government , SO FAR . 

GD to GDP  105%

If we cut the whole federal budget we still fall short every year covering the mandatory debt obligations and the debt interest.  It's way past sustainable .