CBO - Long-term implications for tax rates, tax burden in 2014 outlook 

July 15: The Congressional Budget Office (CBO) today released a report, The 2014 Long-Term Budget Outlook, that also examines the long-term implications for tax rates and the tax burden.

According to the 144-page CBO report [PDF 1.27 MB], the long-term implications for tax rates and the tax burden are summarized:


Even if no changes in tax law were enacted in the future, the effects of the tax system that would be in place would differ in significant ways from the effects of the tax system today. Increases in real income over time would push more income into higher tax brackets in the individual income tax, thereby raising people’s effective marginal tax rates and average tax rates…. Thus, in the long run, people throughout the income distribution would pay a larger share of their income in taxes than people at the same points in the distribution pay today, and many taxpayers would face diminished incentives to work and save.



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