Carlyle Smith

Because for the first time in the past two decades, the math—both fiscal and political—might require it. In 2009 the national debt was 53 percent of GDP. That’s less than ideal. But it’s nothing compared with the projected 2050 debt: 350 percent of GDP. Economists say that closing the gap, which stems from long-term forces like rising health-care costs and the retiring of the baby boomers rather than fleeting issues like President Obama’s stimulus package, will require both lower spending and higher taxes. And while Republicans tend, at least in theory, to support spending cuts next year, and the year after, it will be impossible to keep cutting through year 40 and beyond. Right now, the United States spends less as a share of GDP than all but nine of its 31 fellow OECD nations; our revenue intake, meanwhile, ranks next to last, with 2009’s taxes slipping to their lowest level as a percentage of personal income since 1950. There isn’t much left to cut on either side of the equation, and forecasters predict that our economic growth may be slowing for good. If we’re serious about tackling the debt, we will eventually need more revenue.Read more at www.newsweek.com