The federal budget is on an unsustainable path -- meaning that federal debt will continue to grow much faster than the economy over the long run. ... Rising costs for health care and the aging of the U.S. population will cause federal spending to increase rapidly. ... Large budget deficits would reduce national saving, leading to more borrowing from abroad and less domestic investment, which in turn would depress income growth. ... The accumulation of debt would seriously harm the economy. Alternatively, if spending grew as projected and taxes were raised in tandem, tax rates would have to reach levels never seen in the United States (the highest marginal income tax rate so far: 94 percent, in 1944-45). High tax rates would slow the growth of the economy, making the spending burden harder to bear.
And we think Greece has problems.
