A couple comments on this chart I created:
– All years beyond 2011 are estimates. The dramatic drop in 2013 is due to the reckless Bush tax cuts expiring. The deficit would be closer to 1.3 trillion in 2011 had the Bush tax cuts not been extended.
– The trajectory that occurred from 2007 on was largely due to massive government spending like the 2003 Medicare bill, TARP, GM, and the Obama stimulus plan coupled with the 2002 and 2003 tax cuts which were back-end loaded dramatically cutting receipts. Of the expenses listed the 2003 Medicare Bill was the only long term expense, which has now been replaced with Obama-care.
– Even though the early 80’s deficits pale in comparison with today’s, it was still alarming enough that President Reagan sent through, and signed, two of the largest tax hikes in history to counteract the growth in spending. 2010 saw the lowest amount of taxes paid by US citizens (as a percent of the GDP) in over 60 years, so I think it is safe to say we are not over taxed.
– I put a GOP expectation line just to demonstrate how ridiculous their current rhetoric is. This is becoming cyclical — Republicans run up the deficit and expect the Democrats to fix it.
Regardles of what the spin is, I hope the Republicans and Democrats can get a deal done that includes cuts in spending AND increased revenue through closing loopholes or letting the Bush tax cuts expire.
MJA
I also hope they can get a deal done. I was hoping the House plan would have gotten a little more playtime. However, the big six plan is not too bad. I don’t mind closing the loopholes in the tax system. In fact repeal as many of the tax-handouts as possible. Get rid of the ridiculous corn/ethanol kick-back, lose the R&D handout, and don’t even get me started on the tax shill for home-owners. So I don’t mind raising our taxes through eliminating these “loop-holes”. In return, please eliminate a portion of our social programs and oversea involvement. It seems to me (I am uneducated mind you), that if our government starts acting like they have a fiduciary duty, and not an entitlement, things can only get better.
Interesting chart, with detailed analysis. It’s sigh-inducing, though, and discouraging to see how far out of whack our budget is. Thanks.
Can you point me to the data on this? It’s wonderfully illustrative! This is one if the reasons that I can’t stomach voting republican for the near term.
Daniel — I just took the annual federal deficits (and surpluses) by year and made a graph to show the build. I broke it down even more here:
http://www.mormondems.com/?p=12
” It seems to me (I am uneducated mind you), that if our government starts acting like they have a fiduciary duty, and not an entitlement, things can only get better.”
You pay into Social Security every paycheck. When you are ready to collect on a deduction that has been taken from your pay for the pass forty to fifty years, I hope that the ‘fiduciary’ feels the same way that you feel now!
Then we will all know how ‘dumb’ you will feel when you realize what you paid for isn’t your’s! 🙂