Calculating the Cause of the Budget Deficit

You can check out a thorough decomposition of the causes of the US budget deficit at The American Street. The punchline: the state of the economy only accounts for a small fraction (less than 15%) of the US’s budget problems this decade. On the other hand, tax cuts are responsible for about 70% of the remaining budget mess. Undo the tax cuts, and the US’s budget problems would disappear.