2009 Federal Revenue and Spending Book of Charts

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Repealing Tax Cuts and Not Fixing AMT Won't Balance the Budget

If the 2001 and 2003 tax cuts expire and the AMT is not fixed, taxes will soon grow to unprecedented levels. Even this massive increase in federal revenue will not solve the spending imbalance driven by Medicare, Medicaid, and Social Security.

Federal Spending as a Percentage of GDP Under the Extended Baseline Scenario

Source: Heritage Foundation calculations based on Congressional Budget Office data.

Key Research:

Entitlements

The Long-Term Entitlement Spending and Deficit Problem Could Be Resolved Without Tax Increases	Entitlement Spending Will More Than Double by 2050	Entitlements Alone Will Eclipse Historical Tax Levels by 2052	If Tax Revenue Is Held At Historical Levels, Total Spending Could Reach 67 Percent of GDP	Obama's Budget Ignores Entitlement Crisis
The Ratio of Workers to Social Security Beneficiaries Is Declining	Repealing Tax Cuts and Not Fixing AMT Won't Balance the Budget	Social Security Spending Soon to Rise Rapidly	Tax Rates Would Need to More Than Double If Entitlements Are Not Reformed