Is it possible to raise taxes enough to fix the deficit? What does the oil connection say?

In 2008, I said that an energy shortfall was likely to make it more difficult to pay back debt and to fund government promises, such as Social Security. Now there has been a big step down in US oil consumption:

Barrels per oil consumed per capita per year in the US, based on US Energy Information Administration data

Figure 1. US per capita oil consumption in the US dropped dramatically starting in late 2007, according to data of the US Energy Information Administration.

The information we hear about GDP growth would make a person think that the economy is almost sailing along. It seems to me that if we look at the situation closely, per capita spendable income in $2005 dollars has dropped significantly, if one considers oil price changes and related drops in credit availability.  More importantly, a model I developed suggests a serious gap has developed between what the government is now spending and what can reasonably be funded through tax revenue.
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