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THE NATIONAL DEBT

Under the Fair Share Tax Reform, total government taxes (revenues) would be increased about 10% (as a percent of GDP compared to the 2001-10 period, under the Bush tax cuts), although taxes on the typical taxpayer (in fact, the bottom 80%) would be reduced substantially. This would increase revenues from 17.1% to 18.8% of GDP, slightly under where they were during the the Clinton Administration, a period of great financial growth that benefited the poor, middle class, and wealthy alike.

The proposed Spending Reforms below, once mostly implemented (2020-45), reduce total government spending by about 18% below current levels (the 2001-10 period), to on average 17.0% percent of GDP. Thus, two dollars of spending would be cut for every dollar in total tax increases under the proposed Fair Share Tax Reform.

If the Fair Share Tax Reform was joined with the proposed Fair Share Spending Reforms, our Nation Debt would start to drop (as a percent of GDP) immediately and could be entirely paid off by 2040. The graph below  shows the projections for the the Federal Budget based on my best calculations.

Click here to download the Xcel spreadsheet below that shows all government revenue, spending, and debt under the Fair Share Reforms. You can change the green numbers on the downloaded spreadsheet to see the effect on the National Debt of changing the tax rates and shifting the budget priorities.

FAIR SHARE TAX REFORM - A comprehensive tax reform plan for federal, state and local governments, that reduces total taxes on the working-poor and middle-class by thousands each year, encourages stable economic growth, vastly simplifies our tax laws, and slashes the national debt.