Tax and Spending Implications of the Federal Deficit Crisis

The gathering storm


The United States faces unparalleled fiscal challenges. Over the next decade, the gap between revenue and spending that would result from continuing current tax and spending policies appears unsustainable. This imbalance is driven by the demographic and entitlement challenges created by the imminent retirement of the Baby Boom generation and the interest on our publicly held debt. Our political leaders differ on the relative contribution that spending cuts or tax increases should make in bringing the federal budget closer to balance. However our leaders address spending and tax policy in the face of these deficits, the direct and indirect consequences on business will be far-ranging.

The Gathering Storm: Tax and Spending Implications of the Federal Deficit Crisis explores the role tax policy may play as the nation addresses persistent deficits. It looks at the causes and components of the debt and deficit challenges ahead, examines the legislative process options and overall approaches that could be used to fashion long-term solutions, and considers possible spending components of a deficit reduction plan and options to reform tax laws to increase revenue through existing income taxes or from alternative sources. Finally, it outlines the steps businesses should be taking now to plan for possible tax and spending reform and thrive in a post-reform era.