Will a failure to raise the US debt ceiling force a default?

[mheslep]

Are you suggesting a 14% of GDP cut in federal spending? Roughly half of their spending.

At 43% cut. Yes, over the two year term of this Congress. The time for the OMG! calls was a couple years go when the US was buying car companies and raising discretionary budgets by 20%. Too late now.

 

[PhilKravitz]

At 43% cut. Yes, over the two year term of this Congress. The time for the OMG! calls was a couple years go when the US was buying car companies and raising discretionary budgets by 20%. Too late now.

Hurray! I agree completely.

 

[mugaliens]

The US government has failed to collect more than 20% of GDP in revenues in modern times...

While managing to spend quite a bit more of unaccounted funds.

 

[Vanadium 50]

The problem is that no realistic tax policy would achieve that. That kind of (effective) federal tax rate is not only far above the point of diminishing returns, it would drastically reduce GDP, making the government's problem worse, not better.

Al, Al, Al. You need to start reading more left-leaning blogs. The have the solution: tax last year's income - i.e. a wealth tax.