The government signed the $1.7T omnibus spending bill over the holidays, despite the fact that the national deficit is extraordinarily high.

That deficit approached $1.4T in 2022 and the national debt is nearly $31.5T. This has led us to a turning point in Washington:

Either D.C. starts cutting spending immediately — or American taxpayers will feel serious pain.

Many citizens have already heard concerning reports that their tax returns might not be as high this year, and the economy remains in a tenuous position.

The cost of living is already extremely high despite cooling inflation numbers, and taxes are coming to the front of the argument.

And according to a very concerning report, those taxes might jump by a lot.

Via The Daily Wire:

The federal government’s budget is in such disarray that balancing the books would require a 30% spending cut or a 40% increase in taxes, a recent study found.

The analysis in question said that the “fiscal imbalance must be zero for a fiscal policy to be sustainable without future changes.”

In order to hit that zero number, we’ll have to make a drastic change to either government spending or taxes.

And if it’s taxes, we could see across-the-board hikes on payroll taxes, business taxes, and individual taxes.

On top of that, Social Security, Medicare, and Medicaid might suffer from big cuts, which would exponentially increase the financial difficulties for many.

The study painted a very scary picture of the future, too:

Combining current debts with the present value of projected future shortfalls over the next 75 years implies $93.8 trillion of fiscal imbalance.

Recent packages President Joe Biden signed will contribute over $4.8T in new deficit spending over the next decade.

The Biden administration bragged about the deficit coming down during his time in office, but he’s omitting one important fact:

Spending surges in years prior due to the pandemic were attributed to stimulus measures passed during lockdown days, and hugely altered the entire landscape before Biden came in.

But the bottom line is that U.S. taxpayers may be on the cusp of historic tax hikes.

And if that happens before the 2024 election rolls around, expect those suffering from financial woes to vote for a major change for the country.

Key Takeaways:

• A new report says the government must cut spending drastically, or increase taxes.
• In order to balance the books, they’d need to cut spending by 30% — or hike taxes by 40%.
• This could include cuts to Social Security and Medicare, as well as tax increases for businesses and individuals.

Source: The Daily Wire