--- title: "Interactive Fiscal Model | A Government That Works for the People" canonical: "https://govthatworks.org/fiscal" description: "Explore the book\u2019s fiscal framework with interactive debt, package-balance, and health-transition sensitivity tools." --- Chapter 22 · Appendix E # Make the arithmetic public. The fiscal framework separates three questions that are easy to mix together: what current law does to the debt, whether the book's general-fund commitments are financed, and whether the proposed health system actually lowers total health costs. The controls below let readers change the assumptions and see which number moves. Author planning framework · not an official CBO, JCT, OMB, or CMS score Current policy vs. the book ## The first comparison is the baseline, not a promise. The page separates the official current-law baseline from the author’s proposed fiscal framework. The book’s numbers are planning estimates, not an official score. Current framework CBO’s February 2026 current-law baseline projects federal debt held by the public at 101% of GDP in 2026 and 120% in 2036. → Book proposal The book shows an illustrative repair path that rises modestly at first and then declines to about 102.2% of GDP in 2036 under its stated assumptions. What it could mean for people For households, this chart is not a personal bill. It describes the federal fiscal backdrop that can affect future taxes, spending choices, and interest costs. Current framework Under current law, taxes and spending already produce large annual deficits in CBO’s baseline. → Book proposal The book pairs new general-fund commitments with revenue and savings, adds longer-term scoring and fiscal rules, and treats baseline repair as a separate task. What it could mean for people Some households would receive new benefits or services while others would bear more of the proposed revenue. The book does not provide a complete household-by-household tax-and-transfer microsimulation. Current framework Health spending today flows through a mix of federal programs, state programs, employers, households, and private insurers. → Book proposal The National Health Guarantee is kept in a separate Health Trust ledger rather than folded into the general-fund package. What it could mean for people This makes it clearer that a larger federal health budget can partly replace premiums and out-of-pocket spending rather than representing the same amount of new national spending. Current baseline source: [Congressional Budget Office, 2026–2036 outlook](https://www.cbo.gov/publication/62105). Book proposal: Chapter 22 and Appendix E. Household lens ## Start with income, then read the national totals. Appendix E includes five worked examples for single-earner families of four with employer coverage. They are illustrations, not a complete tax-and-transfer microsimulation. The labels below are shorthand; the same income can support very different living standards depending on family size and location. Lower income**$55k** Lower-middle**$90k** Middle income**$150k** Upper-middle**$250k** Higher income**$400k** Middle-income example**$150,000** In Appendix E's worked health example, this household is modeled at about $14,655 less per year in health-related costs under the illustrative design. Health example**−$14,655 / year** The book says gains in roughly the $100,000–$180,000 range depend on the health transition producing national savings. General-fund revenue**No exact household figure** The book says most conventional general-fund revenue comes from capital income, large estates, corporate profits, and tax preferences concentrated near the top of the distribution. Broad-based taxes**Rebate matters** If a value-added tax were used for baseline repair, the book pairs it with a per-person rebate. The rebate offsets more of the burden for lower-consuming households than for high-consuming households. **Very high incomes and large fortunes:**The book's general-fund revenue plan relies most heavily on higher taxation of capital income above a high threshold, large estates, corporate profits, and selected tax preferences. It does not provide a precise dollar bill for a millionaire or billionaire household because that would require household-level data on income sources, assets, deductions, consumption, and family structure. First distinction ## Three ledgers, not one number. A federal budget number can describe very different things. The framework keeps the debt baseline, the general-fund policy package, and the self-financed Health Trust separate so each result can be read on its own terms. 1 ### Current-law debt This asks: if tax and spending law generally continues, how large is federal debt relative to the economy? 2 ### General-fund package This asks: after the book's new commitments and proposed revenues are counted, does that package add to or reduce the annual deficit at full implementation? 3 ### Health Trust This asks something different: after premiums and other private spending are replaced by dedicated contributions, do households collectively pay more or less for health care? This interactive debt-path lab needs JavaScript. The underlying tables are in Appendix E of the book and in the [fiscal workbook](/downloads/fiscal-model.xlsx). This interactive budget builder needs JavaScript. The underlying tables are in Appendix E of the book and in the [fiscal workbook](/downloads/fiscal-model.xlsx). This interactive Health Trust ledger needs JavaScript. The underlying tables are in Appendix E of the book and in the [fiscal workbook](/downloads/fiscal-model.xlsx). [See the full health-care proposal](/healthcare)[Read Appendix E.5](/downloads/book.pdf#page=427) How to read the model ## How the arithmetic is meant to be read. 01 ### Baseline first Start with a current-law baseline rather than assuming the budget already balances. 02 ### Keep separate ledgers separate The general-fund package, the Health Trust, paid leave, and Social Security do not all use the same financing mechanism. 03 ### Test ranges, not one point The low, central, and high estimates show how sensitive the model is to cost, revenue, take-up, implementation, and health assumptions. 04 ### Do not confuse a model with a score The workbook exposes author assumptions. Final legislation would require formal legislative text and official scoring. [Download the fiscal workbook (.xlsx)](/downloads/fiscal-model.xlsx)[Read Appendix E](/downloads/book.pdf) Current-law benchmark: Congressional Budget Office, *The Budget and Economic Outlook: 2026 to 2036* (February 2026). Book-framework values are author planning estimates from Appendix E and the companion workbook. ## What does the plan mean for your household? The new household calculator combines the Health Trust contribution, the child allowance (net of the Child Tax Credit it replaces), the 7% child-care cap, and an optional baseline-repair VAT — for any household size, coverage type, and income. [Open My Plan calculator →](/my-plan) The Strongest Counterargument & Our Response ### Best case against The framework depends on author planning estimates, future legislation, and behavioral assumptions that can move by hundreds of billions of dollars. A package that is neutral against a current-law baseline can still leave the underlying federal debt path unsustainable. ### The author's response Appendix E separates program financing from baseline repair, publishes an assumption registry, keeps the Health Trust on its own financing ledger, and explicitly calls for official scoring and independent microsimulation before legislation. ### What remains uncertain Interest rates, productivity, health-cost growth, immigration, and the final statutory details can materially change the result.