Assignment 1

Reading: The U.S. Deficit/Debt Problem: A Longer-Run Perspective

Short Answer

1. Discuss the advantages and disadvantages of raising the social security tax and the marginal rates on the individual income tax.

2. What is the European Fiscal Compact?

Updated the Data

1. What was the ratio of the gross federal debt held by the public to GDP in 2015?

2. What percentage of total federal revenue came from individual income taxes and payroll taxes in 2015?

3. What was the ratio of the federal deficit to GDP in 2015?

4. What was the ratio of mandatory spending to total federal outlays in 2015?

5. What is the projected (by CBO) ratio of mandatory spending to total federal outlays in 2026?

6. What is the projected ratio of mandatory spending to total federal revenues in 2026?

7. Attach a graph of the federal deficit or surplus (not seasonally adjusted) as a percent of GDP for the period 1930 -2015.

8. Attach a graph of the total federal debt as a percentage of GDP (seasonally adjusted) for the years 1966-2015.

Attachment:- Thornton.pdf