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This is a PPT that I created for a discussion of the US Federal Budget, the Deficit, and the Debt. Many of the slides are public domain items for Heritage Foundation and Concord Coalition. It led to some very good non-partisan discussions. There is hope!
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The Federal Budget
A (Hopefully) Non-Partisan Review and Discussion of the Data and Options.
Joseph D. Botana II CPA
September 23rd, 2012
These pie charts illustrate the composition of our federal budget.
The four largest sources of spending -- Health, Social Security, Defense, and Income Security -- constitute over 75% of annual expenditures. While the government brings in most of its revenue from income taxes and social insurance taxes, the second pie chart demonstrates that the deficit is similar in size to these revenue sources. As a result, our government spends a significant part of the budget on annual interest, a percentage that will continue to grow as deficits accumulate and debt increases.
$3.5 TR spending
$2.3 TRrevenues
Revenues, Outlays, and the Deficit: This line graph shows historical and projected data for U.S. outlays and revenues. Only four times since 1968 have revenues exceeded outlays, thereby eliminating the deficit. Current policy projections show that the government is unlikely to come close to budget balance in future years. Projections of current law get closer, but still don't achieve balance.
MANDATORY SPENDING
Mandatory spending accounts for more than 60% of the federal budget. This bar chart shows the projected amount, in billions of dollars, spent on select mandatory programs like Social Security,
Medicare, and Medicaid.
This bar chart shows how the federal budget will grow and change over the next twenty years. As a percentage of GDP, the largest source of growth will be the rising interest on the U.S. national debt.
Outlays & Revenues: This line graph shows historical and projected data for U.S. outlays and revenues. Only four times since 1968 have revenues exceeded outlays, thereby eliminating the deficit. Current policy projections show that the government is unlikely to come close to budget balance in future years. Projections of current law get closer, but still don't achieve balance.
Americans are carrying lighter debt burdens.
Debt held by households and nonprofits — including money owed on mortgages, student loans, auto loans and credit cards — was equivalent to 113.2% of after-tax income as of June, the lowest level since 2003. After peaking at 134.4% in summer 2007, household debt has fallen as consumers make payments and wipe out debt through foreclosure and bankruptcy.
