The federal budget is on an unsustainable course, with even more runaway spending and rising debt on the horizon. Now, more than ever, it is important for Americans to understand what our nation’s spending, taxes, and debt mean to them. The Heritage Foundation’s Budget Chart Book is a user-friendly way to learn about the federal budget through pictures.
Federal spending was on the rise prior to the economic recession and passage of the 2009 stimulus bill, and it continues to climb steeply under President Obama, as these Federal Spending charts show:
Some policymakers would pay for increased spending with tax hikes. As explained in these Federal Revenue charts, however, taxes have already risen to burdensome levels and will reach unprecedented heights:
Record deficits will be the norm as spending continues to grow faster than revenue. These Debt and Deficits charts emphasize that, absent spending cuts and serious entitlement reforms, debt will approach dangerous levels and further strain the economy:
America is poised on a precipice of disastrous deficits due primarily to spending on the three major entitlement programs—Social Security, Medicare, and Medicaid. As illustrated by these Entitlements charts, cutting spending alone will not fix this massive problem:
Tough policy choices and strong entitlement reforms are essential to get the federal budget back on track. The Budget Chart Book will help you understand the current fiscal situation, and it will help Americans to appreciate the magnitude of the decisions that policymakers must enact to protect America’s fiscal future.
Emily Goff Research Assistant Thomas A. Roe Institute for Economic Policy Studies Kathryn Nix Policy Analyst Center for Health Policy Studies John Fleming Senior Data Graphics Editor
The charts in this book are based primarily on data available as of March 2011 from the Office of Management and Budget (OMB) and the Congressional Budget Office (CBO). The charts using OMB data display the historical growth of the federal government to 2010 while the charts using CBO data display both historical and projected growth from as early as 1940 to 2084. Projections based on OMB data are taken from the White House Fiscal Year 2012 budget.
The charts provide data on an annual basis except where calculations are made for Administration averages. Debt limit data are based on the limit in effect at the end of the calendar year. All spending and revenue data are based on a fiscal year. For simplicity, these are displayed as calendar years in the charts. Prior to 1976, the fiscal year was from July 1 to June 30. Following that year, the current format of October 1 to September 30 was implemented. In the charts, the transition is omitted for clarity. Also, in all charts in which spending or revenue is measured by taxpayer, taxpayers are counted as the number of individual income tax returns filed (according to data from the Internal Revenue Service) per year. Thus, married couples that both work but file a joint return are counted as a single combined-income unit. Most of the data are adjusted for inflation in 2010 dollars. Specific information regarding data sources is indicated at the bottom of each chart.
Charts designating Presidential Administrations begin with the fiscal year in which the Administration presented its first budget. In the case of 2012, an atypical year in which much was spent before the Administration’s first fiscal year budget (FY2011), all revenue and spending up to the CBO January 2012 "Budget and Economic Outlook" is attributed to President Bush. All revenue and spending thereafter is attributed to President Obama.