If Congress allows current laws signed by President Barack Obama to stand and follows the fiscal path they have set for the next decade, federal tax revenues will rise to a record level as a percentage GDP, according to the Congressional Budget Office, but annual federal spending will also increase by 55 percent and continuous deficits will require Congress to lift the federal debt limit by another $4.25 trillion even as the government rakes in unprecedented tax revenue.
Under the so-called “fiscal cliff” scenario, in which all of the Bush tax cuts are allowed to expire and “sequestration” of some anticipated federal spending takes place, the federal government still will not balance its budget.
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