Bush tax cuts: debt-to-GDP will rise inexorably starting after 2010, reaching 100 percent in 2035 and more than 200 percent in 2050

February 12, 2008, 1:05 pm | About Those Bush Tax Cuts for the Rich . . . | By The Editorial Board
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All else being equal, if the tax cuts are made permanent — without making up for the lost revenue by raising other taxes or cutting spending — debt-to-GDP will rise inexorably starting after 2010, reaching 100 percent in 2035 and more than 200 percent in 2050. Courting debt loads of that magnitude implies severe economic distress.

In contrast, if the tax cuts are allowed to expire, debt-to-GDP will dip a bit in the decades to come and then rise rapidly, to 100 percent by 2050, pushed up mainly by rising health care costs. That’s still a big problem, but not nearly as big as it will be if the tax cuts are also extended. ...