Tax revenues are expected to drop to their lowest level relative to the economy since 1950. The deficit this year is expected to hit $1.5 trillion and despite all the wishful thinking in the world America can't tax cut it's way to a balanced budget.
The CBO estimates that the deficit will be a more than manageable $551 billion which would put it at 3% of the economy. This estimate is calculated on letting the Bush tax cuts expire in two years as they are currently legislated to do, while the GOP/Tea Party blather about budget cuts is just that, blather with no real substance. If the Bush tax cuts are extended beyond two years the expected deficit will be about the same at $1.5 trillion, something that is only sustainable in the short term.
If the GOP were to ever get its way and eliminate the Estate Tax and Capital Gains taxes completely, $1.5 trillion will seem modest by comparison.