Daniel Shaviro

Daniel Shaviro is Professor of Law at New York University Law School. His research has mainly emphasized tax policy, government transfers, budgetary measures, social insurance, and entitlements reform. Recent books that he has published include Do Deficits Matter? (1997), When Rules Change: An Economic and Political Analysis of Transition Relief and Retroactivity (2000), and Making Sense of Social Security Reform (2000), all published by the University of Chicago Press.

Papers Published in World Economics:

The Growing US Fiscal Gap

The United States has a huge long-term fiscal gap, perhaps with a present value as great as $74 trillion. The US may thus be unable to continue meeting its current spending commitments without eventually enacting huge tax increases. The tax cut enacted in 2001 may have increased the fiscal gap by about $13 trillion, but the main cause of the gap is increasing life expectancy, which raises the cost of Social Security and Medicare. While the fiscal gap can in theory be eliminated at the stroke of a pen by simply changing stated policy, in practice this could lead to serious disruption of people’s expectations. In addition, the fiscal gap may impair future generations’ opportunity to take full advantage of technological advances (such as in treating cancer) that have the potential to make their lives significantly better than ours.

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