Can Higher Taxes Prevent the US From Going Bankrupt?

Can the United States become bankrupt despite its enormous economy and ability to raise taxes? The US reportedly owes about $39 trillion, including debt held within the federal system. Its GDP is around $30 trillion, while government revenue comes from federal, state and local taxes. I argue that the country could raise far more revenue if it adopted a higher tax-to-GDP ratio similar to Scandinavian countries. If US taxes rose significantly without a matching rise in spending, the government could generate trillions of dollars more each year. From this perspective, the debt may be large but still manageable relative to the country's income capacity. I also think the global economy needs major restructuring. A more uniform global cost of living and an international approach to sovereign debt could reduce the burden on heavily indebted countries. Economic experts would need to determine how such a system could work fairly.

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