The U.S. can try to avoid this fate by raising taxes, but that approach faces both political and
economic obstacles. Raising taxes is rarely popular with either voters or politicians, especially in a weak economy. Both macroeconomic and microeconomic perspectives, moreover, suggest that taxes slow economic growth, thereby limiting the scope for revenue gains. And since projected fiscal gaps are growing, the tax increases necessary to stabilize debt relative to GDP will generate escalating evasion and avoidance. This means the U.S. will reach a point where further tax increases reduce rather than increase tax revenue.