December 6, 2010

Commission's Plan Assumes Unrealistic Revenues

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This chart by Mercatus Center Senior Research Fellow Veronique de Rugy illustrates the unfeasibility of the Deficit Commission’s revenue plan.
The Commission’s plan projects that the federal government will be able to collect 21 percent of GDP in tax revenues each year into the future. However, as this charts shows, this level of taxation exceeds even the highest levels of the past and the most plausible projections of the Congressional Budget Office.  The closest that revenue collection has come to these levels was in 1944,  when the federal government collected 20.9 percent of GDP.