January 9, 2007 | WebMemo on Federal Budget
The cost of the big entitlements-Social Security, Medicare, and Medicaid-is set to explode, and if America does nothing, these entitlements will crowd out other federal spending and push taxes to unprecedented heights.
In this brief presentation, The Heritage Foundation's Stuart Butler looks at future spending and tax projections. He shows that not only is a tsunami wave of health and retirement spending poised to increase the size of government dramatically, but also taxes as a share of the economy are scheduled to rise to European levels-despite the Bush tax cuts. The solution is straightforward: Sharply reduce entitlements and taxes.Click here to view presentation.
For background on the growing future tax burden, see Daniel J. Mitchell, Ph.D., and Stuart M. Butler, Ph.D., "What Is Really Happening to Government Revenues: Long-Run Forecasts Show Sharp Rise in Tax Burden," Heritage Foundation Backgrounder No. 1957, July 28, 2006.
Stuart M. Butler, Ph.D., is Vice President for Domestic and Economic Policy Studies at The Heritage Foundation.