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Estados Unidos en cifras 2012.

Estados Unidos en cifras 2012.

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  • 1. Federal Budgetin Pictures2012$0.5 trillion$1.0 trillion$1.5 trillion$2.0 trillion$2.5 trillion$3.0 trillion$3.5 trillion$4.0 trillion$0.5 trillion$1.0 trillion$1.5 trillion$2.0 trillion$2.5 trillion$3.0 trillion$3.5 trillion$4.0 trillionFederalRevenue$0.5 trillion$1.0 trillion$1.5 trillion$2.0 trillion$2.5 trillion$3.0 trillion$3.5 trillion$4.0 trillionDebt andDeficitsFederalSpending$0.5 trillion$1.0 trillion$1.5 trillion$2.0 trillion$2.5 trillion$3.0 trillion$3.5 trillion$4.0 trillionBudget Chart BookEntitlements
  • 2. Federal Budgetin Pictures2012$0.5 trillion$1.0 trillion$1.5 trillion$2.0 trillion$2.5 trillion$3.0 trillion$3.5 trillion$4.0 trillion$0.5 trillion$1.0 trillion$1.5 trillion$2.0 trillion$2.5 trillion$3.0 trillion$3.5 trillion$4.0 trillionFederalRevenue$0.5 trillion$1.0 trillion$1.5 trillion$2.0 trillion$2.5 trillion$3.0 trillion$3.5 trillion$4.0 trillionDebt andDeficitsFederalSpending$0.5 trillion$1.0 trillion$1.5 trillion$2.0 trillion$2.5 trillion$3.0 trillion$3.5 trillion$4.0 trillionBudget Chart BookEntitlements
  • 3. The Thomas A. Roe Institute for Economic Policy StudiesCopyright©2012TheHeritageFoundation214 Massachusetts Avenue, NEWashington, DC 20002(202) 546-4400heritage.org
  • 4. iiiFederal spending and debt are out of control,and if America does not change course, thefuture will be dramatically worse. Now more thanever, it is crucial that Americans understand whatour nation’s spending, taxes, and debt mean forthem and their families. The Heritage Foundation’sFederal Budget in Pictures offers a unique toolto learn about the federal budget in a clear andcompelling way.These pictures reveal the urgent need torein in spending. The federal budget is on anunsustainable course, because Publicly Held DebtIs Set to Skyrocket (p. 30) despite Taxes SoaringPast Highest Level Ever (p. 24). Federal Spendingper Household Is Skyrocketing (p. 2), and FederalSpending Exceeds Federal Revenue by Morethan $1 Trillion (p. 3). If Congress fails to adoptthe transformational reforms necessary to cutspending and stabilize the debt, U.S. Debt Is onTrack to Fuel an Economic Crisis (p. 38).Runaway Spending, Not Inadequate Tax Revenue,Is Responsible for Future Deficits (p. 7). MedicareIs Adding to Federal Deficits Faster Than OtherGovernment Spending Programs (p. 44), and SocialSecurity Deficits Are Permanent and Growing (p.45). Meanwhile, Medicare and Other EntitlementsAre Crowding Out Spending on Defense (p. 8), a coreconstitutional function of government.Some suggest raising taxes to cover budgetdeficits. However, Balancing the Budget WithoutCutting Spending Would Cause Taxes to Skyrocket(p. 50) to the point where Hiking Taxes to Balancethe Budget Would Require Doubling Tax Rates (p. 51).Taxing the Wealthy to Balance the Budget Will NotWork (p. 52), as this would necessitate raising taxrates to mathematically impossible levels.About the Federal Budget in Pictures
  • 5. ivPresident Obama’s Budget Hikes Taxes by $2Trillion (p. 23) even though Increasing Tax RatesDoes Not Necessarily Lead to Higher Income TaxReceipts (p. 25). Higher taxes on working, saving,and investing would, however, discourage theproductive activities that enable the Americaneconomy to flourish and the American peopleto prosper. American businesses are alreadyhamstrung internationally, as the U.S. Has theHighest Corporate Tax Rate (p. 21).Bold, transformational reforms are neededto solve America’s spending and debt crises.The Heritage plan, Saving the American Dream,achieves this through spending, entitlement, andtax reforms. It reduces the size of government,encourages personal fiscal responsibility, andfosters economic growth. It balances the federalbudget in ten years—without raising taxes.The Federal Budget in Pictures will help allAmericans understand the severity of the nation’scurrent fiscal situation and appreciate the growingmagnitude of decisions that lawmakers mustconfront to fix the debt, cut spending, and restoreprosperity in America.
  • 6. vFEDERAL SPENDING Federal Spending per Household Is Skyrocketing.................................................................................................................................................................................................................................................2 Federal Spending Exceeds Federal Revenue by More than $1 Trillion...............................................................................................................................................................3 Federal Spending Grew Nearly 12 Times Faster than Median Income...............................................................................................................................................................4 What if Families Handled Finances Like the Federal Government Does?................................................................................................................................................. 5 Mandatory Spending Has Increased Nearly Six Times Faster than Discretionary Spending.....................................................................6 Runaway Spending, Not Inadequate Tax Revenue, Is Responsible for Future Deficits...............................................................................................7 Medicare and Other Entitlements Are Crowding Out Spending on Defense......................................................................................................................................8 National Defense Spending Would Plummet Under Obama’s Budget.................................................................................................................................................................9 Budget Control Act Sequestration Would Hit Defense Hardest.....................................................................................................................................................................................10 Obama Budget Would Make Defense the Lowest Budget Priority...............................................................................................................................................................................11 More than Half of All Federal Spending Will Be on Entitlement Programs in 2012.......................................................................................................12 Total Welfare Spending Is Rising Despite Attempts at Reform.........................................................................................................................................................................................13 More than 70 Percent of Federal Spending Goes to Dependence Programs.....................................................................................................................................14 Cut Spending, Fix the Debt, and Restore Prosperity................................................................................................................................................................................................................................... 15FEDERAL REVENUE Taxes per Household Have Risen Dramatically.......................................................................................................................................................................................................................................................18Table of Contents
  • 7. vi Top 10 Percent of Earners Paid 71 Percent of Federal Income Taxes .................................................................................................................................................................19 Federal Revenues by Source.................................................................................................................................................................................................................................................................................................................................. 20 U.S. Has the Highest Corporate Tax Rate.................................................................................................................................................................................................................................................................................21 Obamacare’s Barrage of Tax Hikes..........................................................................................................................................................................................................................................................................................................22 Obama’s Budget Hikes Taxes by $2 Trillion......................................................................................................................................................................................................................................................................23 Taxes Soaring Past Highest Level Ever.........................................................................................................................................................................................................................................................................................24 Increasing Tax Rates Does Not Necessarily Lead to Higher Income Tax Receipts...........................................................................................................25 Tax Revenues Return to Historical Average....................................................................................................................................................................................................................................................................26 Heritage’s New Flat Tax Simplifies the Tax System.......................................................................................................................................................................................................................................27DEBT AND DEFICITS Publicly Held Debt Set to Skyrocket....................................................................................................................................................................................................................................................................................................30 Each American’s Share of Publicly Held Debt Is Skyrocketing...........................................................................................................................................................................................31 Obama’s Budget Fails to Solve the Debt Crisis Despite $2 Trillion in Tax Hikes....................................................................................................................32 Obama’s Budget Continues Unprecedented Deficits.................................................................................................................................................................................................................................33 Federal Budget Deficits Will Reach Levels Never Seen in the U.S..............................................................................................................................................................................34 Rising Deficits Drive U.S. Debt Limit Higher, Faster...................................................................................................................................................................................................................................35 Interest On the Debt Will Nearly Double Over the Next Decade..................................................................................................................................................................................36
  • 8. vii Interest on the Debt Exceeds Spending for Many Programs.................................................................................................................................................................................................. 37 U.S. Debt on Track to Fuel Economic Crisis.....................................................................................................................................................................................................................................................................38 Debt to Grow Unless Government Spending Is Reduced................................................................................................................................................................................................................39ENTITLEMENTS Entitlement Spending Will Nearly Double by 2050.....................................................................................................................................................................................................................................42 Tax Revenues Devoured By Medicare, Medicaid, and Social Security in 2045...........................................................................................................................43 Medicare Adding to Federal Deficits Faster than Other Government Spending Programs.........................................................................44 Social Security Deficits are Permanent and Growing................................................................................................................................................................................................................................45 Without Entitlement Reform, Federal Spending Will Exceed 40 Percent of the Economy by 2050....................................46 Discretionary Spending Cuts Alone Will Not Balance the Budget............................................................................................................................................................................47 Even Eliminating Defense Spending Completely Would Not Balance the Budget...........................................................................................................48 Letting Tax Cuts Expire Will Not Balance the Budget............................................................................................................................................................................................................................49 Balancing the Budget Without Cutting Spending Would Cause Taxes to Skyrocket....................................................................................................50 Hiking Taxes to Balance the Budget Would Require Doubling Tax Rates................................................................................................................................................ 51 Taxing the Wealthy to Balance the Budget Will Not Work...........................................................................................................................................................................................................52 Government Policy Reform Needed to Keep Spending Low and End Deficits Without Raising Taxes..........................53
  • 9. Federal SpendingSpending is at record levels and is stillgrowing, threatening economic freedom.
  • 10. 2heritage.orgFederal Spending Chart 1 • Federal Budget in Pictures 2012Sources: U.S. Census Bureau, Office of Management and Budget, and Congressional Budget Office.INFLatIoN-adJuSted doLLarS (2012)Federal Spendingper HouseholdIs Skyrocketingthe federal government isspending more perhousehold than ever before.Since 1965, spending perhousehold has grown by 152percent, from $11,900 in 1965to $30,015 in 2012. From2012 to 2022, it is projectedto rise to $34,602—a 15percent increase.$0$5,000$10,000$15,000$20,000$25,000$30,000$35,0001965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 20202022: $34,602$11,9002009—Stimulus package and bailouts: $31,5422012:$30,015Actual Projected
  • 11. 3heritage.orgFederal Spending Chart 2 • Federal Budget in Pictures 2012Source: Office of Management and Budget.INFLatIoN-adJuSted doLLarS (2012)Federal SpendingExceeds FederalRevenue by Morethan $1 TrillionSince 1965, spending hasrisen constantly. Whilefederal revenues arerecovering from the recentrecession, spending isgrowing sharply, resulting infour consecutive years ofdeficits exceeding $1 trillion.1965 1970 1975 1980 1985 1990 1995 2000 2005 2010$0$1 trillion$2 trillion$3 trillion$4 trillionnnnest. 2012:$1.08trilliondeficit$3.60trillion$2.52trillionSpendingrevenue
  • 12. 4heritage.orgFederal Spending Chart 3 • Federal Budget in Pictures 2012Sources: U.S. Census Bureau and Office of Management and Budget.PerCeNt ChaNge IN INFLatIoN-adJuSted doLLarS (2012)Federal SpendingGrew Nearly12 Times Fasterthan Median IncomeWhen federal spendinggrows faster than americans’paychecks, the burden ofgovernment on taxpayersbecomes greater. over thepast four decades,median-income americans’earnings have risen only 24percent, while spending hasincreased 288 percent.+287.5%1970: $926 billion2010: $3.6 trillion+24.2%1970: $41,3582010: $51,3601970 1975 1980 1985 1990 1995 2000 2005 20100%50%100%150%200%250%300%total FederalSpendingMedian householdIncome
  • 13. 5heritage.orgFederal Spending Chart 4 • Federal Budget in Pictures 2012Sources: Congressional Budget Office and U.S. Census Bureau.INFLatIoN-adJuSted doLLarS (2012)What if FamiliesHandled FinancesLike the FederalGovernment Does?In 2010, median familyincome was $51,360. If atypical family followed thefederal government’s lead, itwould spend $73,319 and put30 cents of every dollar spenton a credit card. this familywould have racked up$325,781 in credit carddebt—like a mortgage, onlywithout the house. Whatcredit card company wouldcontinue lending money tothis family?Ifatypicalfamilyspentlikethegovernment,itwouldspend$73,319(equivalentto$3.6trillion)......eventhoughithadonlyearned $51,360($2.5trillion)......whichwouldleaveitwith aone-yeardeficit of$21,959($1.08trillion).Thatdeficit—andborrowingtopayforit—wouldbeapartofitsgrowingfamilydebt of$325,781($16trillion).Each blockrepresents $1,000
  • 14. 6heritage.orgFederal Spending Chart 5 • Federal Budget in Pictures 2012Source: Office of Management and Budget.INFLatIoN-adJuSted doLLarS (2012)MandatorySpending HasIncreased NearlySix Times Fasterthan DiscretionarySpendingMandatory spending—primarily entitlements andinterest—is set on budgetaryautopilot, growing withoutcongressional debate. It hasincreased almost six timesfaster than discretionaryspending, including defense,which is the part of federalspending subject to annualbudgets.$0$1 trillion$2 trillion$3 trillion$4 trillion1965 1970 1975 1980 1985 1990 1995 2000 2005 2010DiscretionaryMandatory2012: $3.57 trillion total(Mandatory spending: 63%)1965: $633.6 billion total(Mandatory spending: 29%)
  • 15. 7heritage.orgFederal Spending Chart 6 • Federal Budget in Pictures 2012Source: Heritage Foundation calculations based on Congressional Budget Office data.PerCeNtage oF gdPRunaway Spending,Not InadequateTax Revenue,Is Responsiblefor Future Deficitsthe main driver behindlong-term deficits isgovernment spending, notlow revenue. While revenuewill surpass its historicalaverage of 18.1 percent ofgdP by 2018, spendingremains above its historicalaverage of 20.2 percent,reaching 22.1 percent by2022, even after $2.1 trillionin spending cuts in theBudget Control act.12%14%16%18%20%22%24%26%28%SpendingRevenue18.1%20.2%RevenueSpendingaverages,1960–2008:1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020Actual Projected2012:23.3%2022:22.1%2022: 18.3%2012:16.1%
  • 16. 8heritage.orgFederal Spending Chart 7 • Federal Budget in Pictures 2012Source: Office of Management and Budget.PerCeNtage oF gdPMedicare and OtherEntitlements AreCrowding OutSpending onDefenseever-increasing entitlementspending is putting pressureon key spending priorities,such as national defense, acore constitutional functionof government. defensespending has declinedsignificantly over time, evenwhen the wars in Iraq andafghanistan are included, asspending on the three majorentitlements—SocialSecurity, Medicare, andMedicaid—has more thantripled.1965Note: 2012 figures estimated.1970 1975 1980 1985 1990 1995 2000 2005 20102%4%6%8%10%2012:9.7%2012:4.5%7.4%2.5%1976 was thefirst yearentitlementspendingexceededdefensespendingEntitlementsMedicare, Medicaid,and Social SecurityDefense
  • 17. 9heritage.orgFederal Spending Chart 8 • Federal Budget in Pictures 2012Source: Office of Management and Budget.PerCeNtage oF gdPNational DefenseSpending WouldPlummet UnderObama’s BudgetPresident obama’s “leandefense” strategy wouldcreate a hollow force andexacerbate today’s readinesscrisis. decreases in fundingfor the core defense programmean losing capabilities thatare crucial for the military tofulfill its constitutional dutyto provide for the commondefense.1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 20200%2%4%6%8%10%2022:2.5%4.1%Post-9/11average:9.5%2012:4.5%Actual Projected
  • 18. 10heritage.orgFederal Spending Chart 9 • Federal Budget in Pictures 2012Source: Congressional Budget Office.NoMINaL doLLarSBudget Control ActSequestrationWould Hit DefenseHardestthe Budget Control act’s$1.2 trillion automaticsequestration cuts, out of$46.3 trillion in totalspending, would imposedraconian cuts on defense(on top of an estimated $407billion in cuts from itsspending caps). this wouldslash the defense budget andjeopardize the u.S. military’sability to defend the nation.entitlement spending—thebiggest part of the budget—would scarcely be touched bycomparison.Entitlement Spending Total Spending, 2013–2021Budget AuthorityCuts due to sequestration$26.1 trillion$171 billionNon-DefenseDiscretionarySpending$11.3 trillion$322 billionDefenseSpending$5.3 trillion$492billionNet Interest$3.6trillion$169 billionShare oF totaLSeQueStratIoN CutSEntitlementSpending14.8%Non-DefenseDiscretionary Spending27.9%DefenseSpending42.6%NetInterest14.6%
  • 19. 11heritage.orgFederal Spending Chart 10 • Federal Budget in Pictures 2012Source: Office of Management and Budget.NoMINaL doLLarSObama BudgetWould MakeDefense the LowestBudget PriorityPresident obama’s budgetwould lower defensespending below other majorbudget priorities, forcing cutsto personnel levels andweakening militaryreadiness. By 2018, the u.S.would spend more oninterest on the debt than onprotecting the country.$0$0.5 trillion$1.0 trillion$1.5 trillion$2.0 trillion$2.5 trillion$3.0 trillion2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022DefenseNet Interestall otherSpendingMedicare,Medicaid, andSocial Security$631 billion$602 billion
  • 20. 12heritage.orgFederal Spending Chart 11 • Federal Budget in Pictures 2012Source: Office of Management and Budget.PerCeNtage oF FY2012 SPeNdINgMore than Halfof All FederalSpending Will Beon EntitlementPrograms in 2012Medicare, Medicaid, andSocial Security—along withother entitlements such asfood stamps, unemployment,and housing assistance—make up 62 percent of allfederal spending. In contrast,spending on foreign aidrepresents about 1 percent.Medicare,Medicaid, andother healthCare62%Entitlement ProgramsSocialSecurityWelfareProgramsand otherentitlements22% 21% 19%all otherSpending8%Net Interest 6%education 4%Foreign affairs 1%National defense 19%50%
  • 21. 13heritage.orgFederal Spending Chart 12 • Federal Budget in Pictures 2012Source: Heritage Foundation calculations based on data from current and previous White House Office of Management and Budget documentsand other official government sources.INFLatIoN-adJuSted doLLarS (2011)Total WelfareSpending Is RisingDespite Attemptsat Reformtotal means-tested welfarespending (cash, food,housing, medical care, andsocial services to the poor)has increased more than17-fold since the beginning ofLyndon Johnson’s War onPoverty in 1964. though thecurrent trend isunsustainable, the obamaadministration wouldincrease future welfarespending rather than enacttrue policy reforms.1950 1960 1970 1980 1990 2000 2010$0$200 billion$400 billion$600 billion$800 billion$1 trillion1964War onPovertybegins1981reagan“slashes”welfare1996reform“endswelfare”2011: $910 billion
  • 22. 14heritage.orgFederal Spending Chart 13 • Federal Budget in Pictures 2012Source: The Heritage Foundation’s Index of Dependence on Government.Share oF totaL FederaL SPeNdINgMore than 70Percent of FederalSpending Goes toDependenceProgramsgovernment dependence isdriving budget deficits andfederal debt. More than 70percent of federal spendinggoes to 47 governmentdependence programs,including housing, farmsubsidies, and the threelargest entitlements,Medicare, Medicaid, andSocial Security.0%10%20%30%40%50%60%70%80%1962 1965 1970 1975 1980 1985 1990 1995 2000 2005 20101962:28.3%1990:48.5%2003:68.3%2010:70.5%
  • 23. 15heritage.orgFederal Spending Chart 14 • Federal Budget in Pictures 2012Sources: Current projections: Heritage Foundation calculations based on data from the Congressional Budget Office (Alternative Fiscal Scenario). HeritagePlan: Calculations by the Center for Data Analysis based on data provided by the Peter G. Peterson Foundation. For more information, go to savingthedream.org.PerCeNtage oF gdPCut Spending,Fix the Debt, andRestore ProsperityBy rapidly lowering totalfederal spending, Saving theAmerican Dream: The HeritagePlan to Fix the Debt, CutSpending, and RestoreProsperity would balance thebudget by 2021 and keep itbalanced permanently,without raising taxes.CURRENT PROJECTIONS HERITAGE PLAN10%15%20%25%30%35%2010 2015 2020 2025 2030 203510%15%20%25%30%35%2010 2015 2020 2025 2030 203533.9%18.7%17.6%18.5%SpendingRevenueSpendingRevenue
  • 24. Federal RevenueAmerica’s growing tax burden is a dragon the economy and will reach recordlevels without policy changes.
  • 25. 18heritage.orgFederal revenue Chart 1 • Federal Budget in Pictures 2012Sources: U.S. Census Bureau and Office of Management and Budget.INFLatIoN-adJuSted doLLarS (2011)Taxes perHousehold HaveRisen Dramaticallythough the economicdownturn has temporarilylowered overall tax revenues,the tax burden on americansis still high.1965 1970 1975 1980 1985 1990 1995 2000 2005 2010$0$5,000$10,000$15,000$20,000$25,0001965:$11,5542000:$24,7012007:$23,6102011:$19,409
  • 26. 19heritage.orgFederal revenue Chart 2 • Federal Budget in Pictures 2012Source: Internal Revenue Service.PerCeNtage oF FederaL INCoMe taXeS aNd INCoMe earNed (2009)Top 10 Percent ofEarners Paid 71Percent of FederalIncome Taxestop earners are the target fornew tax increases, but thefederal income tax system isalready highly progressive.the top 10 percent of incomeearners paid 71 percent of allfederal income taxes in 2009though they earned 43percent of all income. thebottom 50 percent paid 2percent of income taxes butearned 13 percent of totalincome. about half of taxfilers paid no federal incometax at all.Thisgroupofincomeearners......earnedthisshareofallincome......andpaidthisshareoffederalincometaxes.2%–5%15%22%Bottom50%13%2%25%–50%21%10%10%–25%23%17%5%–10%11%12%Top 1%17%37%
  • 27. 20heritage.orgFederal revenue Chart 3 • Federal Budget in Pictures 2012Source: Congressional Budget Office.PerCeNtage oF totaL FederaL reVeNue (2011)Federal Revenuesby SourceMost federal revenues comefrom individual taxpayers.Personal income taxes arethe largest portion of totaltax revenues. Social Securityand Medicare payroll taxesare the second-largestsource.0%10%20%30%40%50%0%10%20%30%40%50%IndividualtaxesSocialInsurance(Payroll)CorporatetaxesCustomsduties,Misc.excisetaxesestateand gifttaxes47.4%35.6%7.9%5.7%3.1%0.3%$1,091.5 billion$818.8$181.1$131.3$72.4$7.4Total: $2.3 trillion
  • 28. 21heritage.orgFederal revenue Chart 4 • Federal Budget in Pictures 2012Source: Organisation for Economic Co-operation and Development (OECD).CoMBINed CorPorate taX rateSU.S. Has theHighest CorporateTax Ratehigh federal and statecorporate tax rates make itdifficult for u.S.headquartered businesses tocompete internationally. u.S.rates have been consistentlyhigher than the average ofindustrialized nations. Inapril 2012, Japan reduced itscorporate tax rate to 36.8percent, making the u.S. totalcorporate tax rate thehighest.24%26%28%30%32%34%36%38%40%42%2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (est.)39.26%United States25.47%OECD average(comprisesdevelopednations, suchas Canada,France, UnitedKingdom, andSwitzerland)36.8% Japan
  • 29. 22heritage.orgFederal revenue Chart 5 • Federal Budget in Pictures 2012Source: Joint Committee on Taxation.BILLIoNS oF NoMINaL doLLarSObamacare’sBarrage of TaxHikesobamacare imposesnumerous tax hikes whichtotal more than $500 billionover 10 years. obamacare’shigher tax rates on incomeand investment will sloweconomic growth, leavinghardworking americanfamilies and businessesworse off. a particularlyharmful new payroll tax oninvestment income goes intoeffect in January 2013.$0$20$40$60$80$1002010 2011 2012 2013 2014 2015 2016 2017 2018 2019$0.1$12.4$42.1$62.8$68.7$101.5$9.8Tax on “Cadillac” plansIndividual and employer mandatesHealth insurance taxIncrease in Medicare HI tax andapplication to investment incomefor high earnersFeeonmedicaldevicemanufacturersNew restrictions and penaltieson HSA and FSA accountsFee on pharmaceutical companiesRevenue from 8 other new taxes$91.1$37.9$74.9
  • 30. 23heritage.orgFederal revenue Chart 6 • Federal Budget in Pictures 2012Sources: Heritage Foundation calculations based on data from the Office of Management and Budget and the U.S. Department of the Treasury.BILLIoNS oF NoMINaL doLLarSObama’s BudgetHikes Taxes by$2 TrillionPresident obama’s FY 2013budget includes about $1.5trillion in tax hikes. otherproposals bring the true sizeof obama’s tax hikes toover $2 trillion. thisincludes letting the Bush taxcuts expire for high-incomeearners and smallbusinesses and imposingadditional taxes on thesegroups. obama alsoproposes a higher death taxand the institution of newtaxes, such as the punitivebank tax.$0 $500 billion $1 trillion $1.5 trilliontax increases on high-income earners and small businessesNew tax cutshigher taxes on businesses operating internationallyhigher death taxrepeal inventory valuation rulesIncrease unemployment insurance taxImpose a bank taxhigher taxes on energy companiesIrS program integrity cap, insurance company tax increase,and other miscellaneous tax increases$1,433.1$147.5$143.3$86.8$61.8$61.3$51.2$98.0–$75.3
  • 31. 24heritage.orgFederal revenue Chart 7 • Federal Budget in Pictures 2012Sources: Heritage Foundation calculations based on data from the Congressional Budget Office and Office of Management and Budget.PerCeNtage oF gdPTaxes Soaring PastHighest Level Evertaxes are projected toincrease rapidly underdifferent policy scenarios. Ifthe 2001 and 2003 tax cutsexpire and moremiddle-income americansare required to pay thealternative minimum tax(aMt), taxes will reachunprecedented levels. thetax burden will climb even ifthose tax breaks areextended. President obama’sbudget, which cuts sometaxes and raises others,increases the overall taxburden.12%13%14%15%16%17%18%19%20%21%22%23%24%1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 2055hIStorICaL taXreVeNuehighest tax burdenin u.S. history:20.6% (2000)average taxBurden (1959–2008): 18.1%TAX CUTS EXPIRE(current law)OBAMA BUDGETFY 2013Actual ProjectedTax cuts madepermanent,AMT fixed
  • 32. 25heritage.orgFederal revenue Chart 8 • Federal Budget in Pictures 2012Sources: Office of Management and Budget and the Tax Foundation.PerCeNtage oF gdPIncreasing TaxRates Does NotNecessarily Leadto Higher IncomeTax Receiptstax cuts can createincentives for individuals towork, save, and invest, whichcan generate more revenue.the most dramatic decline inthe top individual income taxrate, from 70 percent to 28percent, occurred during thereagan administration,during which tax receiptsremained relatively constantas a share of the economy.0%25%50%75%100%1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2012** Projected70%7.1%91%50%28% 39.6%7.7%35% 35%7.8% 9.2% 8% 7.2% 7.5%toP INdIVIduaLtaX rateINdIVIduaL taXreCeIPtS
  • 33. 26heritage.orgFederal revenue Chart 9 • Federal Budget in Pictures 2012Sources: Office of Management and Budget and Congressional Budget Office (Alternative Fiscal Scenario).PerCeNtage oF gdPTax RevenuesReturn to HistoricalAverageSince World War II, taxreceipts have averagedaround 18.1 percent of gdP.receipts have fallen due tothe recession, but as theeconomy recovers, they willrise above the historicalaverage level by the end ofthe decade, even if all the2001 and 2003 tax cuts aremade permanent.10%15%20%25%1945 1950 1960 1970 1980 1990 2000 2010 2020 20221945:20.4%1950:14.4%2000:20.6%2010:15.1%2022:18.3%average historical revenue(1959–2008):18.1%Actual Projected
  • 34. 27heritage.orgFederal revenue Chart 10 • Federal Budget in Pictures 2012Sources: Heritage Foundation calculations and the Internal Revenue Service.MargINaL taX rateS (2012)Heritage’s New FlatTax Simplifies theTax Systemthe heritage Foundation’sNew Flat tax (NFt), part ofSaving the American Dream,replaces today’s complex taxsystem with one that issimple and fair. the New Flattax would help moreamericans save and invest,and it would encourageeconomic growth withoutraising taxes.TYPICAL TAX RATES TODAY NEW FLAT TAXIn these two examples, total marginal tax rates includeindividual income and payroll taxes.the NFt replaces all income,payroll, and death taxes, anda slew of excises.30.3% 28%40.3%Payroll TaxPayroll Tax15.3%Income TaxIncome Tax15.0%Income TaxIncome Tax25.0%Payroll TaxPayroll Tax15.3%
  • 35. Debt and DeficitsExcessive spending has created recordlevels of debt and deficits, and the worstis yet to come, threatening opportunityand prosperity for younger generations.
  • 36. 30heritage.orgDebt and Deficits Chart 1 • Federal Budget in Pictures 2012Sources: Heritage Foundation calculations based on Office of Management and Budget and Congressional Budget Office data.PerCeNtage oF gdPPublicly Held DebtSet to Skyrocketrunaway spending onMedicare, Medicaid, andSocial Security will drivefederal debt to unsustainablelevels over the next fewdecades. total national debtconsists of publicly held debtand intergovernmental debt.Intergovernmental debt isthe amount that thegovernment owes to specificprograms or agencies, suchas the Social Security trustFund. Publicly held debt ismore relevant to creditmarkets.1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030 20360%50%100%150%200%World War IGreatDepressionWorld War IIWar on TerrorismGlobal Recession1946: 108.6% 2021: 101%2036: 195%World War IGreatDepressionWorld War IIWar on TerrorismGlobal Recession1946: 108.6% 2021: 101%2036: 195%
  • 37. 31heritage.orgDebt and Deficits Chart 2 • Federal Budget in Pictures 2012Sources: U.S. Census Bureau and Congressional Budget Office (Alternative Fiscal Scenario).INFLatIoN-adJuSted doLLarS (2012)Each American’sShare of PubliclyHeld Debt IsSkyrocketingas Washington continues tospend dramatically morethan it can afford, everyamerican will be on the hookfor increasing levels of debt.Without reining in spending,the amount of debt percitizen will skyrocket.1970 1980 1990 2000 2010 2020 2030 2036$0$30,000$60,000$90,000$120,000$150,000Actual Projected1970: $6,4352001:$14,5342031: $102,1082036: $135,5472012: $36,267
  • 38. 32heritage.orgDebt and Deficits Chart 3 • Federal Budget in Pictures 2012Sources: Congressional Budget Office and Office of Management and Budget.PerCeNtage oF gdPObama’s BudgetFails to Solve theDebt CrisisDespite $2 Trillionin Tax HikesIn 2008, publicly held debtas a percentage of theeconomy (gdP) was 40.5percent, nearly four pointsbelow the post-World War IIaverage. Since then, the debthas increased by 45 percent.the President’s FY 2013budget would increase thedebt to 76.5 percent by 2022,despite $2 trillion in taxhikes.1940 1950 1960 1970 1980 1990 2000 2010 20200%20%40%60%80%100%120%1946: 108.7%Post-WWIIaverage: 44.2%1993:49.3%2008:40.5%2012:74.2%2022:76.5%Actual Projected
  • 39. 33heritage.orgDebt and Deficits Chart 4 • Federal Budget in Pictures 2012Source: Office of Management and Budget.Budget deFICItS aS a PerCeNtage oF gdP, BY adMINIStratIoNObama’s BudgetContinuesUnprecedentedDeficitsthe President is responsiblefor submitting an annualbudget to Congress and hasthe authority to vetolegislation, includingirresponsible spending.Most administrations haverun small but manageabledeficits, but Presidentobama’s unprecedentedbudget deficits pose seriouseconomic risks.–8%–6%–4%–2%0%Kennedy Johnson Nixon Ford Carter Reagan Bush Clinton Bush Obama–1.0% –0.9%–2.4%–4.3% –4.3%–0.1%–3.2%–8.3%BushBushFord CarterNixonJohnsonn ReaganKennedyy J Clinton Obama–1.6%–3.5%
  • 40. 34heritage.orgDebt and Deficits Chart 5 • Federal Budget in Pictures 2012Source: Congressional Budget Office (Alternative Fiscal Scenario).PerCeNtage oF gdPFederal BudgetDeficits Will ReachLevels Never Seenin the U.S.unless entitlements arereformed, spending onMedicare, Medicaid, andSocial Security will drivedeficits to catastrophiclevels. While recent budgetdeficits have reachedunprecedented levels,future deficits will bedramatically worse.1970 1980 1990 2000 2010 2020 2030 2040 2050 2060 2070 20800%10%20%30%40%50%60%2000:–2.4%2009:10.1%2085: 57.5%historical average(1959–2008): 2.1%
  • 41. 35heritage.orgDebt and Deficits Chart 6 • Federal Budget in Pictures 2012Sources: Congressional Research Service, U.S. Treasury, and Office of Management and Budget.NoMINaL doLLarSRising Deficits DriveU.S. Debt LimitHigher, Fasterthe Budget Control act, aresult of the contentious 2011debt ceiling debate,increased the debt limit by$2.1 trillion, but failed to reinin the key driver of spendingand debt: entitlementspending. Congress firstplaced a statutory limit onthe national debt in 1917, inthe Second Liberty Bond act.It has been raised 13 timessince 2001.$0$2 trillion$4 trillion$6 trillion$8 trillion$10 trillion$12 trillion$14 trillion$16 trillion1940 1950 1960 1970 1980 1990 2000 20120nnnnnnnnLargest one-year change: +$1.9 trillion, 2010Budget Control act, 2011: +$900 billionNote: Figure for 2012 is current as of April 6.2012: $16.39 trillionBudget Control act, 2012: +$1.2 trillionunchanged for 5 years,1997–2001 ($5.95 trillion)Since 2001,the debtlimit hasbeen raised13 times, fora total of$10.4 trillion
  • 42. 36heritage.orgDebt and Deficits Chart 7 • Federal Budget in Pictures 2012Sources: Congressional Budget Office and Office of Management and Budget.INFLatIoN-adJuSted doLLarS (2012)Interest On theDebt Will NearlyDouble Over theNext Decadeas the publicly held debtgrows, net interest paymentswill increase dramatically,even assuming that interestrates remain low. undercurrent projections, real netinterest costs would morethan double over the nextdecade.1990 1995 2000 2005 2010 2015 2020 2022$0$100$200$300$400$500Actual Projected1990:$294 billion2022: $524 billion2012: $224 billion
  • 43. 37heritage.orgDebt and Deficits Chart 8 • Federal Budget in Pictures 2012Source: Office of Management and Budget.BILLIoNS oF doLLarS (2011)Interest on the DebtExceeds Spendingfor Many ProgramsIn 2011, the u.S. spent moreon net interest—interest paidon publicly held debt—than itspent on many federaldepartments, includingeducation and Labor.$0$50$100$150$200$250NetInterestDepartment ofAgricultureDepartment ofLaborDepartment ofVeteransAffairsDepartment ofTransportationDepartment ofEducationDepartment ofHomelandSecurity$227.1$132.0 $126.9$77.3$65.5$45.7$139.4
  • 44. 38heritage.orgDebt and Deficits Chart 9 • Federal Budget in Pictures 2012Sources: International Monetary Fund and Congressional Budget Office (Alternative Fiscal Scenario).PerCeNtage oF gdPU.S. Debt on Trackto Fuel EconomicCrisisMany european countries,like greece and Italy, aresuffering financial or budgetcrises as a result of mountingdebt. Countries such as Spainare not far behind. unless theu.S. controls spending,america’s debt will surpassthose of troubled nations,leading to similar economicwoes.2000 2005 2010 2015 2020 2025 2030 20352035: U.S.debt at187% GDP0%50%100%150%200%U.S. DEBT TRAJECTORY2011: U.S. debt at 67% GDP(Credit rating downgraded by S&P)2000: U.S. debtat 34% GDPgreece153%Spain56%Japan131%u.k.73%Italy100%Comparisonsare to othernations’ 2011levels of debt.Spain
  • 45. 39heritage.orgDebt and Deficits Chart 10 • Federal Budget in Pictures 2012Sources: Current projections: Congressional Budget Office (Alternative Fiscal Scenario). Heritage Plan: Calculations by the Center for Data Analysis based ondata provided by the Peter G. Peterson Foundation. For more information, go to savingthedream.org.PerCeNtage oF gdPDebt to GrowUnless GovernmentSpending IsReducedWithout significant spendingreforms, publicly held debt isprojected to reach 187percent of gdP by 2035.under the heritage plan,Saving the American Dream,future federal spendingwould be reduced by abouthalf, which woulddramatically lower the debtto 29 percent of gdP.0%50%100%150%200%2010 2015 2020 2025 2030 203568%2011:187%2035:29%2035:CurreNtProJeCtIoNSSaVINg theaMerICaNdreaM
  • 46. EntitlementsMedicare, Medicaid, and Social Securityspending is set to explode, placing enormouspressure on other priorities such as defenseand the rest of the budget.
  • 47. 42heritage.orgEntitlements Chart 1 • Federal Budget in Pictures 2012Source: Congressional Budget Office (Alternative Fiscal Scenario).PerCeNtage oF gdPEntitlementSpending WillNearly Doubleby 2050Spending on Medicare,Medicaid, Social Security,and the obamacaresubsidies will soar as 78million baby boomers retireand health care costs climb.total spending on federalhealth care programs willmore than double. Futuregenerations will be left withan untenable debt burden.0%5%10%15%20%2010 2020 2030 2040 20503.6% 4.2%5.9%7.4%8.6%1.9%2.7%3.4%4.0%4.5%4.8%5.2%6.0%6.0%5.9%10.3%12.1%15.3%17.4%MedicareMedicaid,obamacareSubsidiesSocialSecuritytotal19.0%
  • 48. 43heritage.orgEntitlements Chart 2 • Federal Budget in Pictures 2012Source: Congressional Budget Office (Alternative Fiscal Scenario).PerCeNtage oF gdPTax RevenuesDevoured ByMedicare, Medicaid,and Social Securityin 2045Spending on Medicare,Medicaid, the obamacaresubsidies, and Social Securitywill devour all revenues by2045. entitlement spendingis already crowding out vitalconstitutional functions, suchas defense.1970 1980 1990 2000 2010 2020 2030 2040 2050 2060 2070 2080 20850%5%10%15%20%25%30%MedicareMedicaid,obamacareSubsidies,ChIPSocialSecurityactualrevenueaveragehistoricalrevenue: 18.1%1970:3.9%2011:10.4%2085:25.7%2045: Entitlement spendingmatches tax revenue averageActual Projected
  • 49. 44heritage.orgEntitlements Chart 3 • Federal Budget in Pictures 2012Source: Congressional Budget Office (Alternative Fiscal Scenario).PerCeNtage oF gdPMedicare Addingto Federal DeficitsFaster than OtherGovernmentSpending Programsentitlement spending is themain cause of long-termrunaway federal deficits.Medicare is thefastest-growing program dueto retiring baby boomers, theeffects of an agingpopulation, and risinghealthcare costs.0%2%4%6%8%10%12%14%2011 2015 2020 2030 20402025 2035 2045 2050Medicareall otherNon-InterestSpendingSocialSecurityMedicaid,obamacareSubsidies
  • 50. 45heritage.orgEntitlements Chart 4 • Federal Budget in Pictures 2012Source: Social Security Administration (OASI and DI Trust Fund Data and 2011 Trustees Report).BILLIoNS oF doLLarS (2011)Social SecurityDeficits arePermanent andGrowingSocial Security began runningdeficits in 2010, paying out$48.9 billion more in benefitsthan it received throughpayroll taxes. Nor will thesedeficits ever end, meaningthat without reforms, SocialSecurity will continue to addbillions to the deficit anddebt each year.–$350–$300–$250–$200–$150–$100–$50$0$50$100DeficitSurplus1987 1990 1995 2000 20052010 2015 2020 2025 2030 20352010: $48.9 billion deficit2035: $344 billion deficit
  • 51. 46heritage.orgEntitlements Chart 5 • Federal Budget in Pictures 2012Source: Congressional Budget Office (Alternative Fiscal Scenario).PerCeNtage oF gdPWithoutEntitlement Reform,Federal SpendingWill Exceed 40Percent of theEconomy by 2050the major entitlements—Medicare, Medicaid, theobamacare subsidies, andSocial Security—are pushingspending to unsustainablelevels. these programs mustbe restructured to preventcrippling debt or tax burdenson future generations.0%10%20%30%40%2000 2010 2020 2030 20402005 2015 2025 2035 2045 2050Actual ProjectedMedicareMedicaid,obamacareSubsidies,ChIPSocialSecuritydefenseotherNet Interestactualrevenueaverage historicalrevenue (1959–2008): 18.1%2050: 42.8%
  • 52. 47heritage.orgEntitlements Chart 6 • Federal Budget in Pictures 2012Source: Office of Management and Budget.aNNuaL SPeNdINg (2012)DiscretionarySpending CutsAlone Will NotBalance the Budgetannual spending onentitlement programs ismassive compared to otherfederal spending priorities.Cutting discretionaryspending is necessary, butcuts to foreign aid alone orpulling out of afghanistanwill not close the deficit.entitlement programs mustbe reformed.global Waron terrorism$115.1 billionForeign aid$24.2 billionNaSa$17.6 billionCorporation forPublic Broadcasting$445 millionEntitlements(Medicare, Medicaid,Social Security, and othermandatory programs,plus their net interest)$2.48 TRILLION
  • 53. 48heritage.orgEntitlements Chart 7 • Federal Budget in Pictures 2012Source: Heritage Foundation calculations based on Congressional Budget Office data.PerCeNtage oF gdPEven EliminatingDefense SpendingCompletely WouldNot Balance theBudgetunsustainable entitlementspending is the key driver offuture deficits. rather thantackle them directly, somewould cut defense. But evenif spending on this crucialnational priority waseliminated completely,entitlements would continueto drive deficits tounmanageable levels.1975 1980 1990 2000 2010 2020 2030 2040 20500%5%10%15%20%25%30%35%totalSpendingtotal Spending with Nodefense SpendingBeginning in 2013totalSpendingtotal Spending with Nodefense SpendingBeginning in 2013MedicareMedicaid,obamacareSubsidies,ChIPSocialSecurityall otherSpendingNet Interest33.8%DEFENSEActualRevenueHistorical Revenue: 18.1%
  • 54. 49heritage.orgEntitlements Chart 8 • Federal Budget in Pictures 2012Source: Congressional Budget Office.PerCeNtage oF gdPLetting Tax CutsExpire Will NotBalance the BudgetSome call for letting all 2001and 2003 tax cuts expire,including subjecting themiddle class to thealternative minimum tax, inorder to balance the budget.under this scenario,unaffordable spending wouldstill rise, and economicgrowth and job creationwould suffer.0%5%10%15%20%25%30%2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 2055Spendinghistoricalrevenue: 18.1%revenue2055: 29.9%MedicareMedicaid,obamacareSubsidies,ChIPSocialSecuritydefenseotherNet InterestSpendinghistoricalr 181%revenue2revenue: 18.1%Actual ProjectedDeficit Spending
  • 55. 50heritage.orgEntitlements Chart 9 • Federal Budget in Pictures 2012Source: Heritage Foundation calculations based on Congressional Budget Office data (Alternative Fiscal Scenario).PerCeNtage oF gdPBalancing theBudget WithoutCutting SpendingWould Cause Taxesto Skyrocketamerica is running massivedeficits, and a balancedbudget requirement is oftenconsidered a way to rein inred ink. Without seriousentitlement and spendingreforms, the level of taxesrequired to balance thebudget would reacheconomically stagnatinglevels.0%5%10%15%20%25%30%1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035actualrevenuerevenue Neededto Balance Budgetrevenue to Balance BudgetactualSpendingActual Projected2013: 23.2%2036: 27.4%2012: 16.2%MedicareMedicaid,obamacareSubsidies,ChIPSocialSecurityall otherSpendingNet Interest
  • 56. 51heritage.orgEntitlements Chart 10 • Federal Budget in Pictures 2012Source: Congressional Budget Office.MARGINAL INCOME TAX RATESHiking Taxes toBalance the BudgetWould RequireDoubling Tax RatesThe costs of Medicare,Medicaid, and Social Securityare rising substantially.Paying for this spendingsolely through federalincome tax increases wouldrequire more than a two-foldincrease of current tax rates,even for the lowest taxbracket.0%20%40%60%80%100%2008 2050 2082Lowest Bracket Middle Bracket Highest Bracket Corporate Taxes2008 2050 2082 2008 2050 2082 2008 2050 208210%19%25% 25%47%63%35%66%88%35%66%88%
  • 57. 52heritage.orgEntitlements Chart 11 • Federal Budget in Pictures 2012Sources: Internal Revenue Service and Congressional Budget Office (Alternative Fiscal Scenario).CurreNt taX rateS aNd taX rateS NeCeSSarY to CLoSe deFICItTaxing the Wealthyto Balance theBudget Will NotWorkSome argue for taxing thewealthy to reduce federaldeficits. however, hikingtaxes on taxpayers in the twohighest brackets wouldincrease their tax rates tomathematically impossiblelevels. to close the 2035deficit, the top two tax rateswould increase to 159percent and 166 percent, andin 2050 they would reach236 percent and 246 percent.0%50%100%150%200%250%CURRENT TAX RATESecond-HighestBracketHighestBracketSecond-HighestBracketHighestBracketSecond-HighestBracketHighestBracket33% 35%159% 166%236%246%RATES NEEDED TOCLOSE THE DEFICITIN 2035RATES NEEDED TOCLOSE THE DEFICITIN 2050
  • 58. 53heritage.orgEntitlements Chart 12 • Federal Budget in Pictures 2012Sources: Heritage Foundation calculations by the Center for Data Analysis based current projections, data provided by the Peter G. Peterson Foundation, andCDA policy models.reVeNue aNd SPeNdINg aS a PerCeNtage oF gdPGovernment PolicyReform Needed toKeep Spending Lowand End DeficitsWithout RaisingTaxesBold, transformationalreforms are needed to solveamerica’s spending and debtcrises. the heritage plan,Saving the American Dream,solves these crises throughspending, entitlement, andtax reforms. It reduces thesize of government,encourages personal fiscalresponsibility, and fosterseconomic growth. It balancesthe federal budget by 2021and does not raise taxes. 2010 2015 2020 2025 2030 20350%5%10%15%20%25%entitlements(Medicaid,Medicare,ObamacareSubsidies,SocialSecurity)defenseall otherNet Interest2011: 24.7%SPeNdINgreVeNue
  • 59. 54The charts in this publication are based primarily on data available as of February 2012 from theOffice of Management and Budget (OMB) and the Congressional Budget Office (CBO). The chartsusing OMB data display the historical growth of federal spending, revenue, and debt to 2011, while thecharts using CBO data show both historical and projected growth from as early as 1940 to as far as 2085.Projections based on OMB data are taken from the President’s budget for fiscal year 2013.The charts show annual data except where calculations are made for Administration averages. Debtlimit data are based on the limit in effect at the end of the calendar year. All spending and revenue dataare based on the federal fiscal year. Prior to 1976, the fiscal year was from July 1 to June 30. That year, thecurrent format of October 1 to September 30 was implemented. In the charts, the transition is omitted forsimplicity.Charts designating presidential Administrations begin with the fiscal year in which the Administrationpresented its first budget. In the case of 2009—an atypical year in which much was spent before theAdministration’s first fiscal year budget (FY 2010), all revenue and spending up to the CBO January 2009“Budget and Economic Outlook” is attributed to President George W. Bush. All revenue and spendingthereafter is attributed to President Obama.There are different ways to calculate average historic levels of revenue, spending, and debt. Suchaverages vary due to the time periods covered. In this publication, these averages span 50 years (1959–2008), encompassing post–World War II and pre–Great Recession years.Technical Notes
  • 60. 55Emily GoffResearch Associate, Thomas A. Roe Institute for Economic Policy StudiesRomina BocciaResearch Coordinator, Thomas A. Roe Institute for Economic Policy StudiesJohn FlemingSenior Data Graphics EditorAuthors
  • 61. 56The Entitlements Initiative is one of 10 Transformational Initiatives making up The Heritage Founda-tion’s Leadership for America campaign. For more products and information related to this initiative or tolearn more about the Leadership for America campaign, please visit heritage.org.The Heritage Foundation is a research and educational institution—a think tank—whose mission is toformulate and promote conservative public policies based on the principles of free enterprise, limited gov-ernment, individual freedom, traditional American values, and a strong national defense.Our vision is to build an America where freedom, opportunity, prosperity, and civil society flourish. Asconservatives, we believe the values and ideas that motivated our Founding Fathers are worth conserving.As policy entrepreneurs, we believe the most effective solutions are consistent with those ideas and values.
  • 62. The Federal Budget in Pictures is available online withenhanced features. Go to heritage.org/FederalBudget• Embed or download the entire book or individualcharts for blogs and presentations• Sign up to receive Budget Sense, a bi-weekly e-mailthat delivers the latest on spending, taxes, and debtdirectly to your inbox• Share charts with your social networks throughFacebook, Twitter, and more• View the interactive charts• Read in-depth research on taxes, spending, debt,and the budgetHeritage.org/FederalBudgetThe Federal Budget in Pictures Online214 Massachusetts Avenue, NEWashington, DC 20002-4999(202) 546-4400heritage.org