The Economic and Fiscal Effects of Financing Medicare's Unfunded Liabilities
Simply raising taxes to finance promised Medicare benefits wouldlikely prove counterproductive because the economic costs would beprohibitive, even if policymakers use new tax revenues to pay downdeficits and debt. Raising payroll and personal income taxes tofinance Medicare over just the next 10 years could reduce totalemployment by an average of nearly 816,000 jobs and depress realGDP by an average of almost $87 billion per year.