President Obama's Plan: Taxes, Spending And Debt

What if Families Handled Finances Like the Federal Government Does?

INFLATION-ADJUSTED DOLLARS (2012)

Sources: Congressional Budget Office and U.S. Census Bureau.

In 2010, median family income was $51,360. If a typical family followed the federal government's lead, it would spend $73,319 and put 30 cents of every dollar spent on a credit card. 

This family would have racked up $325,781 in credit card debt—like a mortgage, only without the house. 

What credit card company would continue lending money to this family?

Why Taxing the Wealthy to Balance the Budget Will Not Work...

CURRENT TAX RATES AND TAX RATES NECESSARY TO CLOSE DEFICIT

Sources: Internal Revenue Service and Congressional Budget Office (Alternative Fiscal Scenario).

Some argue for taxing the wealthy to reduce federal deficits. However, hiking taxes on taxpayers in the two highest brackets would increase their tax rates to mathematically impossible levels. 

To close the 2035 deficit, the top two tax rates would increase to 159% and 166%, and in 2050 they would reach 236% and 246%.