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.