To its credit, the Economic Report of the President has an entire chapter on "RESTORING FISCAL RESPONSIBILITY," and even pays lip service to the root causes of the problem, (i) our big medical safety net and (ii) our rapidly aging population. However, its characterization of the "primary" concern as
"the failure of tax revenue to match Federal spending"
tells you which solution the president prefers. From the Table of Contents:
DETERMINANTS OF CURRENT DEFICITS
- Falling Effective Tax Rates on Upper-Income Taxpayers
- Heterogeneity in Effective Tax Rates among High-Income Taxpayers
- Addressing the Role Of Exclusions and Deductions in Effective Tax Burdens