The national debt is rising unsustainably, driven by a structural mismatch between spending and revenues. Deficits will continue to expand in the decades ahead, as growth in federal spending is projected to outpace growth in revenues.

A new Tax Foundation publication identifies 86 potential changes to the federal tax code, assessing whether they can help close the gap from the revenue side of the equation. The group examines how each revenue option would impact federal revenue, the long-term debt trajectory, the distribution of after-tax income, and the U.S. economy.

The analysis outlines two broader lessons for lawmakers and the public when considering changes to the tax code:

1. Tax policy is about trade-offs between how much revenue a tax will raise (thereby reducing the deficit), who will bear the burden, and how a change will impact economic incentives. It is very difficult to balance all three equally, and policymakers must make decisions based on their priorities.
2. Tax cuts rarely pay for themselves. While economic growth can offset a portion of revenue lost from a tax cut, the Tax Foundation finds that even the most powerful, pro-growth tax reforms would not allow the United States to grow its way out of the debt problem.

The Tax Foundation also emphasizes that revenues are just one half of the toolkit for closing the deficit. Fortunately, as the report shows, there are many options available to lawmakers for fiscally responsible tax reform — but a balanced and comprehensive approach to debt stabilization would span both revenue and spending solutions.