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  • Federal Budget in Pictures Shows America's Spending and Debt Crises

    April 29 marks the third year that the U.S. Senate has not passed a budget. Now more than ever, it is crucial that Americans understand what our nation’s spending, taxes, and debt mean for them and their families and why Congress must urgently get back to budgeting.

    The Heritage Foundation’s newly released Federal Budget in Pictures 2012 edition (previously called the Budget Chart Book) offers a unique tool to learn about the federal budget in a clear and compelling way.

    Debt and Deficits chart 1 shows that publicly held debt is set to skyrocket as deficit spending explodes to finance runaway spending on Medicare, Medicaid, and Social Security. If government spending continues on its current trajectory, in less than 20 years each man, woman, and child in America will owe more than $100,000 for their share of the federal credit card. (Article continued below)

    Entitlement spending is the largest driver of America’s looming spending and debt crises. Entitlements chart 2 demonstrates this fact by showing that, without transformational reforms, spending on Medicare, Medicaid, the Obamacare subsidies, and Social Security will devour all tax revenues by 2045. (Article continued below)

    President Obama laid out his vision for America’s future in February in his fiscal year 2013 budget. The President proposed no meaningful entitlement reforms, but he would rack up more spending and debt and hike taxes by $2 trillion—even though history shows that increasing tax rates does not necessarily lead to higher income tax receipts. Higher taxes on working, saving, and investing would, however, discourage the productive activities that enable the American economy to grow and the American people to get back to work. American businesses are already hamstrung internationally, as the U.S. has the highest corporate tax rate in the world.

    Posted in Economics [slideshow_deploy]

    4 Responses to Federal Budget in Pictures Shows America's Spending and Debt Crises

    1. Doug Weise says:

      Surely, this is not the America we want to bequeath to our descendants. Let's demand better of our congressmen by replacing those who do not act with the best interests of our nation in mind with ones who do. Obstructionist senators, this means you.
      See ya at the polls in November!

    2. guest says:

      It would have been interesting to do a "what if" chart showing the funding if the government had not "temporarily" opened up FICA taxes to the general fund decades ago.

    3. Paul says:

      less than 20% of federal spending is for national defense, including $$s spent on veterans. Less than one-half of one percent is the NASA space exploration budget. Yet liberals would have us believe that "the wars" and "manned space" are responsible for deficits topping 40% of federal spending. Truth #1: entirely cutting all of defense plus all of NASA would still not eliminate even half the annual federal deficit. Truth #2: social spending, totalling 65% of federal spending, is what's bankrupting our federal government. (Besides, "charity" is not "charity" when it's compelled under threat of fines or imprisonmnet.) Truth #3: our men & women in uniform are betrayed, when they come home to a socialist country that is hell-bent on forcible wealth-redistribution; a country traveling the socialist wealth redistribution path right into bankruptcy.

    4. Popdru says:

      After 20 years of dodging bullets, avoiding IED's, and escaping from Suicide Bombers our veterans get to retire for about 10% of the retirement income of the fools and idiots who mismanage the pentagon. Not only that, but the fools and idiots only have to serve one term, and they also get the bribes and perks from the lobbyists, money 'earned' from insider information, and a get out of jail free card for whatever other crimes they committed. God help us all, and a sincere thank you to everyone who wore the uniform of the United States of America with dignity.

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