By NextBestFitPhase 4: Wave 4: everyone · Step 4.5
Switch every tax to its full rate
Year 4 · IRS; TreasuryDiscuss this step
Pros & cons of this step
Pros
- +Dedicated revenue matches spending, with an automatic stabilizer.
Cons
- −Automatic tax increases are politically difficult; Congress may override them.
Trade-off behind each cost item
- Faster tax phase-in would cut borrowing but hit taxpayers before many of them are covered.