2009 Federal Revenue and Spending Book of Charts

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Federal Budget Deficits Will Reach Levels Never Seen Before in the U.S.

Under current law, the budget deficit is projected to grow to 24.5 percent of GDP by 2082, even if the 2001 and 2003 tax cuts are allowed to expire and the AMT is not fixed. This will be driven by , with deficits well above the 30-year historical average of 2.5 percent. Deficits of this size have never been seen in the U.S. and illustrate the need to reform these programs.

Federal Budget Deficit as a Percentage of GDP

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

Key Research:

Debt and Deficits

Federal Budget Deficits Will Reach Levels Never Seen Before in the U.S.	Obama's Budget Would Send Debt to Levels Not Seen Since World War II	Obama's Budget Would Increase Debt by 26.3 Percent of GDP Compared to CBO Baseline	Obama's Budget Would Create Unprecedented Deficits	The Unfunded Liabilities of Entitlement Programs Dwarf Recent Bailout Spending

Federal Budget Deficits Will Reach Levels Never Seen Before in the U.S.

Obama's Budget Would Send Debt to Levels Not Seen Since World War II

Obama's Budget Would Increase Debt by 26.3 Percent of GDP Compared to CBO Baseline

Obama's Budget Would Create Unprecedented Deficits

The Unfunded Liabilities of Entitlement Programs Dwarf Recent Bailout Spending