Heritage Foundation economist Alison Fraser's presentation on runaway government spending on Social Security, Medicare and Medicaid to the Southern California Committee for Heritage on June 9, 2010.

1. Bankrupting Our Children’s Future:
Why Spending and Entitlement Reform Is Vital
Alison Fraser
The Heritage Foundation
Southern California Community Committee
June 9, 2010

3. Federal Budget in the Future
50
45
40
35
Net Interest
30
25
Tax Revenue
20 Historical Average Tax Burden, 18.3%
15 Social Security
Other Spending 2009
10
Medicaid
5
Medicare
0
1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 2055
Federal Spending and Tax Revenue as a Percentage of Gross Domestic Product
Source: Congressional Budget Office and Office of Management and Budget

4. Could Raise Taxes to Balance the Budget
30
25
20 Net Interest Other Spending
Tax Revenue
15
2009 Social Security
10
Medicaid
5
Medicare
0
1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 2055
Federal Spending and Tax Revenue as a Percentage of Gross Domestic Product
Source: Congressional Budget Office and Office of Management and Budget

5. What would balancing mean for tax rates on our children?
Marginal Income Tax Rates
80
70
60
50
40 35 35
30 25
20 10
10
0 2009 2009 2009 2009
Lowest Middle Highest Corporate
Bracket Bracket Bracket Taxes
Source: Congressional Budget Office

6. What would balancing mean for tax rates on our children?
Marginal Income Tax Rates
80
70 66 66
60
47
50
40 35 35
30 25
19
20 10
10
0 2009 2050 2009 2050 2009 2050 2009 2050
Lowest Middle Highest Corporate
Bracket Bracket Bracket Taxes
Source: Congressional Budget Office