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  • Fix the National Debt

    How would you handle the nation's finances given the current situation and the long-term prospects? Here’s your chance to find out.

    After over two decades of uninterrupted borrowing, the U.S. national debt is higher as a share of the economy than at any time since World War II. Yet policymakers have done little to contain our $25 trillion national debt, and most legislation has added to it in recent years. Learn more about our current path.

    The Current National Debt Path

    The nonpartisan Congressional Budget Office (CBO) estimates that national debt held by the public (which excludes what the government owes itself) has will surpass the all-time record of 106 percent of Gross Domestic Product (GDP) by 2028. To put that in perspective, the average over the last 50 years was about 47 percent of GDP.

    The debt will be fueled by endless annual federal budget deficits (the difference between spending and revenue). The deficit is forecast to be $1.4 trillion this year. Bringing spending and revenue more in line, either by reducing spending and/or increasing revenue, will be necessary to improve the fiscal outlook once the current crisis has ended.

    High and rising debt will threaten economic growth and the standard of living for all Americans as investment dwindles and the country becomes less competitive. See why rising debt is a major problem.

    Why High and Rising National Debt is a Problem

    High and rising national debt will threaten economic growth and the standard of living for all Americans. High debt will slow the growth of the economy and wages.

    As debt rises, higher interest payments will crowd out important investments in areas like education, infrastructure, and research that can help grow the economy.

    Getting the debt under control once the crisis is over will be very beneficial for generations to come, from higher wages to increased investment to lower borrowing costs for families and businesses. The Congressional Budget Office predicts that the economy will grow faster with debt on a declining path as opposed to a rising one.

    MEDIUM-TERM GOAL

    98%10 YEARS

    Stabilizing the debt at a reasonable level is the first step in improving our fiscal health. Steadying debt held by the public at 98% of the economy is a realistic level for the near term.

    LONG-TERM GOAL

    60%by 2050

    Getting debt back down to 60% of the economy will give us the fiscal space to deal with future emergencies and help promote economic growth.

    Changing course will require halting the rise of the debt as a share of the economy in the medium term and reducing the debt toward historical levels in the longer term. See more on the targets.

    Why 98% of GDP in 10 Years and why 60% by 2050?

    The fact is that there is no magic number for the national debt. It is not necessary to pay off the national debt entirely to restore our nation's fiscal health. In fact, incurring some national debt can be useful in responding quickly to unexpected events such as the current pandemic.

    Measuring a nation’s debt as a share of its economy is a common method used by economists to gauge a country’s ability to handle its debt. We need to establish an ambitious yet attainable fiscal goal and commit as a nation to achieving it.

    This tool illustrates the tough budget trade-offs involved in order to promote an informed conversation on how we can set a sustainable fiscal course.

    Can you fix the debt and build a responsible federal budget? Give it a try!

    Attention educators and organizations:
    You can create a dedicated group to use the tool and easily compare results. Email us at debtfixer@crfb.org to set it up.
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  • Education, Infrastructure, and Research

    The role of the federal government in the realms of education, infrastructure, and research is often debated with wide-ranging prescriptions for each. This section allows you to adjust funding levels, parameters for specific programs, or more fundamentally alter the federal government’s role in these important areas. All numbers represent the cumulative change in dollars through 2033. 

    • Increase Higher Education Spending (select one) i

    • 2034: $120B2050: 1%in debt/GDP

      Offer Free Community College

      2034: $120B2050: 1%in debt/GDP

      This option would create a new discretionary grant program to provide two years of free community college for students enrolled in high-quality programs that lead to a four-year degree or a good-paying job. 
    • 2034: $900B2050: 8%in debt/GDP

      Offer Free Public College

      2034: $900B2050: 8%in debt/GDP

      This option would make four-year public college effectively free by providing grants that cover two-thirds of the cost of tuition, with states making up the remaining third.
    • 2034: $410B2050: 4%in debt/GDP
    • 2034: $810B2050: 7%in debt/GDP

    • Address Highway Funding (select one) i

    • 2034: $350B2050: 2%in debt/GDP

      Increase the Gas Tax by 15 Cents, Then Grow It in Future Years

      2034: $350B2050: 2%in debt/GDP

      The Highway Trust Fund is financed in part by an 18.4 cents gas tax, a rate that has not been changed since 1993. This option would increase the gas tax by 15 cents to 33.4 cents and index it so that the tax grows each year with inflation. 
    • 2034: $500B2050: 4%in debt/GDP

      Limit Highway Spending to Current Revenue

      2034: $500B2050: 4%in debt/GDP

      The Highway Trust Fund is expected to run a $13 billion deficit in 2023, growing to about $46 billion by 2033. This option would close the shortfall by limiting new highway obligations to dedicated revenue. Since revenue coming into the Highway Trust Fund is projected to slightly decline over time, the spending limit would decline slightly over time as well.
    • 2034: $760B2050: 3%in debt/GDP

    • Modify Federal K-12 Education Spending (select one) i

    • 2034: $740B2050: 5%in debt/GDP

      Devolve K-12 Education to the States

      2034: $740B2050: 5%in debt/GDP

      The federal government currently spends about $54 billion per year on Elementary and Secondary Education (ESEA) grants to the states. This option would eliminate all ESEA spending, making states bear more responsibility for K-12 funding but also freeing them from obligations that come with the federal grants.
    • 2034: $230B2050: 2%in debt/GDP

      Increase K-12 Education Spending

      2034: $230B2050: 2%in debt/GDP

      The federal government currently spends over $21 billion per year on Title I grants to schools with a high number of low-income children. This option would increase annual Title I funding by $16 billion in the first year, consistent with President Biden's FY 2023 budget and increase it gradually in future years. 
    • 2034: $306B2050: 2%in debt/GDP
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  • Defense

    The federal government spends a significant portion of its budget on defense, security, and foreign relations. Many of the programs in these categories are vital to keeping America safe and maintaining global leadership, but high national debt could leave the country vulnerable. All numbers represent the cumulative change in dollars through 2033.

    • Modify Defense Funding Levels (select one) i

    • 2034: $560B2050: 6%in debt/GDP

      Limit Annual Defense Spending Growth to 1%

      2034: $560B2050: 6%in debt/GDP

      The Fiscal Responsibility Act of 2023 (FRA) established caps on defense spending for FY 2024 and FY 2025. The FRA capped defense spending at $886.3 billion for FY 2024 and at $895.2 billion for FY 2025, and spending is assumed to grow roughly at the rate of inflation annually after the caps end. This option would instead limit annual growth to 1 percent through FY 2033.  
    • 2034: $510B2050: 4%in debt/GDP

      Boost Defense Spending by 5% in FY 2024

      2034: $510B2050: 4%in debt/GDP

      The Fiscal Responsibility Act of 2023 (FRA) capped defense spending at $886.3 billion for FY 2024. This option would increase defense spending by 5 percent in FY 2024 and then grow defense spending at roughly the rate of inflation annually thereafter.
    • 2034: $70B2050: 0%in debt/GDP
    • 2034: $80B2050: 1%in debt/GDP
    • 2034: $520B2050: 4%in debt/GDP
    • 2034: $370B2050: 3%in debt/GDP
    • 2034: $220B2050: 2%in debt/GDP

    • Address Illegal Immigration and the Undocumented Population (select one) i

    • 2034: $180B2050: 1%in debt/GDP

      Tighten Border Security and Build a Border Wall

      2034: $180B2050: 1%in debt/GDP

      This option would implement a few policies in an attempt to reduce illegal immigration into the U.S. Specifically, it would build a wall along the U.S./Mexico border, require a mandatory E-verify system for employers to verify the immigration status of individuals, and triple the amount of border patrol agents. This option would cost money both because of the extra resources provided and due to less revenue from those who are denied employment or entry into the country.
    • 2034: $260B2050: 4%in debt/GDP

      Provide a Pathway to Citizenship for Undocumented Immigrants

      2034: $260B2050: 4%in debt/GDP

      There are currently 11 to 12 million undocumented immigrants residing in the U.S. This option would provide a pathway to citizenship for these people, similar to an approach taken in a 2013 bill passed by the Senate. This policy would increase spending as immigrants gained eligibility for federal programs but would increase revenue by a greater amount due to an increase in the size of the population and labor force.
    • 2034: $110B2050: 1%in debt/GDP
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  • Social Security

    Social Security is the single largest government program and is on an unsustainable path. The combination of increasing life expectancy and the retirement of the "baby boom" population is pushing its costs well above its dedicated revenue sources. The longer we wait to address this shortfall, the worse it will get. All numbers represent the cumulative change in dollars through 2033.

    • 2034: $270B2050: 6%in debt/GDP

    • Slow Initial Benefit Growth (select one) i

    • 2034: $530B2050: 12%in debt/GDP

      Set Social Security Benefits to a Flat Amount

      2034: $530B2050: 12%in debt/GDP

      Currently, initial Social Security benefits, or the benefits that a retiree receives in their first year on Social Security, are determined in a way that allows them to grow with wage growth throughout the economy. This option would, in any given year, set Social Security benefits for all newly eligible beneficiaries at their full retirement age to 150 percent of the federal poverty line. For workers with low earnings, benefits under this option would be greater while workers with higher earnings would see a decrease in their benefits relative to what they would receive under current policy. As a result, Social Security benefits would be about one-quarter lower than currently projected under current law within three decades.
    • 2034: $170B2050: 6%in debt/GDP

      Slow Benefit Growth for Top 30% of Earners

      2034: $170B2050: 6%in debt/GDP

      Currently, initial Social Security benefits, or the benefits that a retiree receives in their first year on Social Security, are determined in a way that allows them to grow with wage growth throughout the economy. This option would institute what is known as "progressive price indexing." Workers who earn below the 70th percentile of earnings would have no change to their benefits. Beyond the 70th percentile, an increasing share of benefits would be adjusted by price inflation; workers making just above the 70th percentile would have their benefits adjusted mostly by wage inflation, while top earners would have their benefits adjusted mostly by price inflation.
    • 2034: $390B2050: 12%in debt/GDP

      Slow Benefit Growth for Top 50% of Earners

      2034: $390B2050: 12%in debt/GDP

      Currently, initial Social Security benefits, or the benefits that a retiree receives in their first year on Social Security, are determined in a way that allows them to grow with wage growth throughout the economy. This option would institute what is known as "progressive price indexing." Workers who earn below the 50th percentile of earnings would have no change to their benefits. Beyond the 50th percentile, an increasing share of benefits would be adjusted by price inflation; workers making just above the 50th percentile would have their benefits adjusted mostly by wage inflation, while top earners would have their benefits adjusted mostly by price inflation.

    • Address Cost-of-Living Adjustments (COLAs) (select one) i

    • 2034: $430B2050: 7%in debt/GDP

      Use Chained CPI to Measure Inflation

      2034: $430B2050: 7%in debt/GDP

      The Chained Consumer Price Index (Chained CPI) is a price index developed about 20 years ago that many economists say better measures inflation than the current CPI. It grows about 0.25 percentage points slower per year on average than the current CPI. Lawmakers adopted the Chained CPI for tax provisions in the Tax Cuts and Jobs Act of 2017. This option would also adopt the Chained CPI for Social Security Cost of Living Adjustments (COLAs) and for other benefit programs that rely on inflation adjustments.
    • 2034: $300B2050: 4%in debt/GDP

      Adopt the CPI-E to Measure Inflation for Social Security

      2034: $300B2050: 4%in debt/GDP

      The Experimental Consumer Price Index for the Elderly (CPI-E) is a price index that measures inflation experienced by people 62 years or older. It grows about 0.2 percentage points faster per year on average than the current CPI. This option would adopt the CPI-E for Social Security COLAs, thus slightly increasing COLAs for all beneficiaries.

    • Raise Social Security Payroll Tax Cap (select one) i

    • 2034: $970B2050: 6%in debt/GDP

      Raise the Payroll Tax Cap to Cover 90% of Earnings

      2034: $970B2050: 6%in debt/GDP

      Workers and their employers pay Social Security taxes on income up to its taxable maximum. In 2023, earnings up to $160,200 are subject to the Social Security payroll tax, and that amount increases annually by average wage growth. Originally, in 1937, about 92 percent of all earnings were subject to the tax. While the 1977 Social Security amendments intended to set the cap to cover 90 percent of earnings, it has since fallen to about 83 percent of earnings. This option would raise the taxable maximum so it would cover 90 percent of aggregate earnings. 
    • 2034: $1810B2050: 13%in debt/GDP

      Subject Earnings Greater than $250,000 to the Payroll Tax

      2034: $1810B2050: 13%in debt/GDP

      Workers and their employers pay Social Security taxes on income up to its taxable maximum. In 2023, earnings up to $160,200 are subject to the Social Security payroll tax, and that amount increases annually by average wage growth. This option would apply the 12.4 percent Social Security payroll tax to earnings over $250,000 in addition to earnings below the taxable maximum. Earnings between the taxable maximum and $250,000 would not be taxed until the taxable maximum reaches $250,000, which is expected to occur in 2036.  
    • 2034: $790B2050: 7%in debt/GDP
    • 2034: $230B2050: 4%in debt/GDP
    • 2034: $190B2050: 3%in debt/GDP

    • Increase Benefits (select one) i

    • 2034: $350B2050: 3%in debt/GDP

      Increase Benefits for All Beneficiaries

      2034: $350B2050: 3%in debt/GDP

      Social Security benefits are calculated based on a person’s average monthly earnings and a formula. In 2023, the formula provides a benefit equal to 90 percent of a person’s first $1,115 of monthly earnings, 32 percent of a person’s next $5,606 of earnings, and 15 percent of their earnings above $6,721 up to the taxable maximum of $160,200. This option would increase the 90 percent factor to 93 percent.
    • 2034: $240B2050: 3%in debt/GDP

      Increase Benefits for Vulnerable Beneficiaries

      2034: $240B2050: 3%in debt/GDP

      This option would increase benefits in a few ways for select populations. First, it would establish a minimum benefit so that a worker with 30 years of earnings would automatically receive a benefit of 125 percent of the federal poverty level, with proportionately smaller minimum benefits for work histories between ten and 30 years. Second, it would establish an “old-age bump-up” that would increase a person’s benefit by 5 percent after 20 years of eligibility for Social Security benefits.
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  • Health Care

    Medicare and Medicaid continue to grow at an unsustainable pace. These two programs, more than any other area of the budget, threaten to break the bank. Meanwhile, private health care costs also continue to grow, and nearly 30 million people are projected to remain uninsured. All numbers represent the cumulative change in dollars through 2033. 

    • Modify Health Care Reform Law (“Obamacare”) (select one) i

    • 2034: $360B2050: 3%in debt/GDP

      Extend Expanded Obamacare Subsidies

      2034: $360B2050: 3%in debt/GDP

      The American Rescue Plan Act of 2021 (ARP) temporarily expanded health insurance subsidies from the Affordable Care Act and the Inflation Reduction Act extended the expanded subsidies through 2025. Through 2025, the ARP and Inflation Reduction Act increased those subsidies so that they limit average premiums to between zero percent and 8.5 percent of income, as well as extended them to families earning more than 400 percent of the federal poverty line. This option would make the temporary expansion permanent.
    • 2034: $620B2050: 5%in debt/GDP

      Extend Expanded Obamacare Subsidies and Close the Coverage Gap

      2034: $620B2050: 5%in debt/GDP

      While the Affordable Care Act (“Obamacare”) expanded Medicaid eligibility to those making less than 138 percent of the federal poverty line, 10 states have chosen not to adopt that expansion. In those states, many adults making below the poverty line have no access to health insurance. Those making between 100 and 400 percent of the poverty line can receive private insurance subsidies designed to limit average premiums to between 2 and 10 percent  of income. This option would close this “Medicaid coverage gap” by extending subsidies below the poverty line to cover the full cost of premiums and most cost-sharing. It would also extend a recent expansion of the subsidies, so average costs would be limited to between zero and 8.5 percent of income and the cap would extend above 400 percent of the federal poverty line.
    • 2034: $800B2050: 11%in debt/GDP

      Replace Obamacare with State Grants

      2034: $800B2050: 11%in debt/GDP

      This option would replace Obamacare’s insurance subsidies and Medicaid expansion with state-based grants. The grants would be set at 2019 spending levels (adjusted for inflation) starting this year and would grow with inflation after that. States would have flexibility in how they use the funding to provide health coverage, though the grants would be smaller than the spending they are replacing and would grow more slowly over time.
    • 2034: $190B2050: 2%in debt/GDP

    • Increase Medicare Premiums (select one) i

    • 2034: $220B2050: 4%in debt/GDP

      Increase Medicare Premiums for High-Income Beneficiaries

      2034: $220B2050: 4%in debt/GDP

      Under current law, high-income Medicare beneficiaries (single people making at least $97,000 and couples making at least $194,000) must pay premiums for Parts B and D (which cover outpatient services and prescription drugs) equal to 35 to 85 percent of program spending, compared to 25 percent for everyone else. This option would freeze all the income thresholds for income-related premiums from 2024 through 2032. The freeze would increase the share of beneficiaries paying the higher premiums from about 10 percent in 2024 to 17 percent by 2032.
    • 2034: $900B2050: 9%in debt/GDP

      Increase Medicare Premiums for All Beneficiaries

      2034: $900B2050: 9%in debt/GDP

      Under current law, all Medicare beneficiaries must pay premiums for Parts B and D (which cover outpatient services and prescription drugs). For single people making less than $97,000 and couples earning less than $194,000, the basic premium is equal to 25 percent of program costs. For single people making at least $97,000 and couples earning at least $194,000, premiums are equal to 35 to 85 percent of program spending. This option would increase the basic premium from 25 percent to 35 and freeze all the income thresholds for income-related premiums from 2024 to 2032. The increase in the basic premium would not impact those that pay income-related premiums since their premiums are already equal to at least 35 percent of program costs.
    • 2034: $310B2050: 3%in debt/GDP
    • 2034: $620B2050: 7%in debt/GDP
    • 2034: $50B2050: 0%in debt/GDP
    • 2034: $420B2050: 4%in debt/GDP
    • 2034: $540B2050: 7%in debt/GDP

    • Reduce Medicaid Spending (select one) i

    • 2034: $700B2050: 7%in debt/GDP

      Eliminate Medicaid Provider Taxes

      2034: $700B2050: 7%in debt/GDP

      Almost all state Medicaid programs tax health care providers to fund their share of Medicaid spending. Since these taxes are essentially funneled back to providers through the Medicaid spending they finance, the federal government currently limits these taxes to 6 percent of patient revenue. This option would reduce the provider tax limit by one percentage point per year until provider taxes are prohibited, requiring states to compensate with other revenue sources or by reducing Medicaid spending.
    • 2034: $710B2050: 8%in debt/GDP

      Block Grant Medicaid and Grow Per-Person Spending With Medical Inflation

      2034: $710B2050: 8%in debt/GDP

      Medicaid is one of the fastest growing programs in the federal budget as a result of enrollment and health care cost growth. This option would convert Medicaid into a block grant to states. These block grants would be set at 2019 levels and per-person spending would grow at a slower rate (medical inflation) than the program is expected to grow in subsequent years. States would be given flexibility over program eligibility, coverage, and other details.
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  • Other Domestic Spending

    There are many other domestic spending programs across the federal government not included in the previous sections that could be addressed. This section allows you to make changes to safety net programs, spending on federal workers, and other areas of domestic spending. All numbers represent the cumulative change in dollars through 2033. 

    • Modify Nondefense Funding Levels (select one) i

    • 2034: $420B2050: 5%in debt/GDP

      Limit Annual Nondefense Spending Growth to 1%

      2034: $420B2050: 5%in debt/GDP

      The Fiscal Responsibility Act of 2023 (FRA) established caps on nondefense spending for FY 2024 and FY 2025. The FRA capped nondefense spending at $703.7 billion for FY 2024 and at $710.7 billion for FY 2025, and spending is assumed to grow roughly at the rate of inflation annually after the caps end. This option would instead limit annual growth to 1 percent through FY 2033. 
    • 2034: $510B2050: 4%in debt/GDP

      Return Nondefense Spending to FY 2023 Level in FY 2024

      2034: $510B2050: 4%in debt/GDP

      The Fiscal Responsibility Act of 2023 (FRA) capped nondefense spending at $703.7 billion in FY 2024. However, a series of side agreements have been made outside of the FRA to make it easier for appropriators to adhere to the caps. For example, the FRA effectively placed $22 billion into a Department of Commerce reserve fund that can be rescinded to cover future appropriations. In addition, the parties have apparently agreed to cut $20 billion of Internal Revenue Service funding from the Inflation Reduction Act in order to pay for some additional appropriations. This option assumes the side agreements are adopted, thus allowing appropriators to keep FY 2024 nondefense spending at about the FY 2023 level.  
    • 2034: $60B2050: 0%in debt/GDP

    • Provide Paid Leave (select one) i

    • 2034: $710B2050: 7%in debt/GDP

      Provide Paid Family and Medical Leave

      2034: $710B2050: 7%in debt/GDP

      This option would provide three months of federal paid family and medical leave for nearly all workers. Benefits would be equivalent to two-thirds of a worker’s salary in their highest earning year out of the previous three years, though a minimum benefit of $580 per month would apply for very low earners, and benefits would be capped at $4,000 per month.
    • 2034: $250B2050: 2%in debt/GDP

      Provide Paid Family Leave

      2034: $250B2050: 2%in debt/GDP

      This option would provide three months of federal paid family leave, allowing parents to take time off for the birth or adoption of a child. Benefits would be equivalent to two-thirds of a worker’s salary in their highest earning year out of the previous three years, though a minimum benefit of $580 per month would apply for very low earners, and benefits would be capped at $4,000 per month.
    • 2034: $280B2050: 2%in debt/GDP
    • 2034: $140B2050: 1%in debt/GDP
    • 2034: $200B2050: 2%in debt/GDP
    • 2034: $210B2050: 1%in debt/GDP
    • 2034: $280B2050: 2%in debt/GDP
    • 2034: $140B2050: 1%in debt/GDP
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  • Individual Income Tax

    The largest source of revenue in the federal budget is individual income taxes, which includes taxes on earned income as well as on capital gains, dividends, and interest. This section allows you to change tax rates on various sources of income and also reform deductions, exclusions, and credits in the current federal income tax code. All numbers represent the cumulative change in dollars through 2033.

    • Modify the Tax Cuts and Jobs Act of 2017 (select one) i

    • 2034: $3400B2050: 27%in debt/GDP

      Extend the Tax Cuts and Jobs Act of 2017

      2034: $3400B2050: 27%in debt/GDP

      The Tax Cuts and Jobs Act of 2017 (TCJA) includes several changes to the individual income tax that reduce taxes on net. These changes include reducing tax rates across the board, increasing the Child Tax Credit, increasing the Standard Deduction, providing a deduction for noncorporate businesses, and rolling back several other deductions. However, these policies expire after 2025. This option would permanently extend the TCJA's individual income tax changes.
    • 2034: $2750B2050: 23%in debt/GDP

      Extend the Tax Cuts and Jobs Act of 2017 But Increase the Top Rate

      2034: $2750B2050: 23%in debt/GDP

      The Tax Cuts and Jobs Act of 2017 (TCJA) includes several changes to the individual income tax that reduce taxes on net. These changes include reducing tax rates across the board, increasing the Child Tax Credit, increasing the Standard Deduction, providing a deduction for noncorporate businesses, and rolling back several other deductions. However, these policies expire after 2025. This option would permanently extend the TCJA’s individual income tax changes, but immediately increase the top tax rate that applies to income over $578,125 ($693,750 for married couples filing jointly) from 37 percent to 39.6 percent. This would reduce deficits in the near term but increase them over the long term due to the extensions.
    • 2034: $2150B2050: 17%in debt/GDP

      Extend the Tax Cuts and Jobs Act for Taxpayers Earning Less Than $400,000

      2034: $2150B2050: 17%in debt/GDP

      The Tax Cuts and Jobs Act of 2017 (TCJA) includes several changes to the individual income tax that reduce taxes on net. These changes include reducing tax rates across the board, increasing the Child Tax Credit, increasing the Standard Deduction, providing a deduction for noncorporate businesses, and rolling back several other deductions. However, these policies expire after 2025. This option would permanently extend the TCJA’s individual income tax changes for taxpayers earning less than $400,000 per year.
    • 2034: $880B2050: 2%in debt/GDP

      Repeal the Tax Cuts and Jobs Act of 2017

      2034: $880B2050: 2%in debt/GDP

      The Tax Cuts and Jobs Act of 2017 (TCJA) includes several changes to the individual income tax that reduce taxes on net. These changes include reducing tax rates across the board, increasing the Child Tax Credit, increasing the Standard Deduction, providing a deduction for noncorporate businesses, and rolling back several other deductions. This option would repeal the TCJA’s changes ahead of their scheduled expiration in 2025.
    • 2034: $280B2050: 2%in debt/GDP

    • Increase Taxes on Wealth (select one) i

    • 2034: $560B2050: 4%in debt/GDP

      Enact a 25% Ultra-Millionaire Tax on Unearned Income

      2034: $560B2050: 4%in debt/GDP

      Currently, long-term capital gains are taxed at a top rate of 23.8 percent, but only after assets are sold and gains are realized. For those with over $200 million of wealth, this option would impose a 25 percent minimum tax based on the concept of income that includes unrealized gains. Taxes paid on these unrealized gains would be credited against future taxes paid on realized gains to avoid double taxation. 
    • 2034: $3080B2050: 27%in debt/GDP

      Impose Ultra-Millionaire Wealth Tax

      2034: $3080B2050: 27%in debt/GDP

      Currently, the federal government taxes income, including from capital gains, dividends, and interest, but not wealth. This option would impose an annual wealth tax of 2 percent on all net worth above $50 million and a 3 percent wealth tax on all net worth above $1 billion. It would also include some measure designed to prevent tax avoidance. 
    • 2034: $390B2050: 3%in debt/GDP
    • 2034: $520B2050: 4%in debt/GDP
    • 2034: $1750B2050: 14%in debt/GDP
    • 2034: $370B2050: 2%in debt/GDP
    • 2034: $200B2050: 1%in debt/GDP
    • 2034: $1570B2050: 8%in debt/GDP
    • 2034: $840B2050: 9%in debt/GDP
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  • Other Taxes

    Several taxes other than individual income taxes also help finance the federal government, including the Corporate Income Tax, the Estate Tax, and various excise taxes. This section allows you to make changes to these sources of revenue or impose new types of taxes. All numbers represent the cumulative change in dollars through 2033.

    • Increase Corporate Taxes (select one) i

    • 2034: $760B2050: 5%in debt/GDP

      Increase Corporate Tax Rate to 25%

      2034: $760B2050: 5%in debt/GDP

      The TCJA lowered the Corporate Income Tax rate from 35 percent to 21 percent. This option would partially undo this reduction, increasing the rate to 25 percent.
    • 2034: $1330B2050: 9%in debt/GDP

      Increase the Corporate Tax Rate to 28%

      2034: $1330B2050: 9%in debt/GDP

      The TCJA lowered the Corporate Income Tax rate from 35 percent to 21 percent. This option would partially undo this reduction, increasing the rate to 28 percent. 
    • 2034: $340B2050: 2%in debt/GDP
    • 2034: $190B2050: 2%in debt/GDP
    • 2034: $550B2050: 2%in debt/GDP
    • 2034: $320B2050: 2%in debt/GDP
    • 2034: $40B2050: 0%in debt/GDP
    • 2034: $1120B2050: 8%in debt/GDP
    • 2034: $1010B2050: 7%in debt/GDP
    • 2034: $2900B2050: 21%in debt/GDP

    • Reform the Estate Tax (select one) i

    • 2034: $420B2050: 3%in debt/GDP

      Restore Estate Tax to 2009 Levels

      2034: $420B2050: 3%in debt/GDP

      For 2023, the Estate Tax applies a 40 percent top tax rate to inherited estates larger than $12.92 million ($25.84 million for couples), with the exemption indexed for inflation each year. This option would restore the Estate Tax to its 2009 parameters, which would lower the exemption to $3.5 million ($7 million for couples), increase the tax rate to 45 percent, and eliminate the inflation indexing.
    • 2034: $140B2050: 1%in debt/GDP

      Lower Estate Tax Exemption to $5+ Million

      2034: $140B2050: 1%in debt/GDP

      For 2023, the Estate Tax applies a 40 percent top tax rate to inherited estates larger than $12.92 million ($25.84 million for couples), with the exemption indexed for inflation each year. This option would reduce the exemption by about half, rolling back the increase in the exemption contained in the Tax Cuts and Jobs Act of 2017. The tax rate would remain the same.
    • 2034: $410B2050: 3%in debt/GDP

      Repeal the Estate Tax

      2034: $410B2050: 3%in debt/GDP

      For 2023, the Estate Tax applies a 40 percent top tax rate to inherited estates larger than $12.92 million ($25.84 million for couples), with the exemption indexed for inflation each year. This option would fully repeal the Estate Tax.
    • 2034: $700B2050: 4%in debt/GDP
    • 2034: $830B2050: 6%in debt/GDP
    • 2034: $200B2050: 1%in debt/GDP
    • 2034: $370B2050: 3%in debt/GDP
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  • Still lots of fixing to do.

    National debt remains too high in both the short and longer term. Try again.

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Debt as Percentage of GDP

114%
2034
169%
2050

Stabilize the U.S. Debt
at 98% of GDP by 2034

Fix the Debt in the short and long term. Make the hard budget choices to stabilize debt at 98% of the economy by 2034 by identifying $6.7 trillion of deficit reduction and bring it down to 60% by 2050.

$6,700 billion to go.
Your goal is to cut $6,700 billion from the Federal Budget to stabilize the debt at 98% of GDP by 2034
Congratulations!

You have cut $0 from the Federal Budget to bring down the debt to under 98% of GDP by 2034 .

 

But there is still more to do!
More cuts are needed to reduce the debt another 109% to bring down the debt to 60% of GDP by 2050.
Congratulations!

You have cut $0 from the Federal Budget to bring down the debt to under 60% of GDP by 2050.

Savings relative to current law (billions) $0

Your Savings

Defense
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Domestic
Income Tax
Other Taxes