Citizen's Guide 2010
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Transcript of Citizen's Guide 2010
25%
Tota
l fe
dera
l, s
tate
,
an
d local govern
men
t
receip
ts a
s a s
hare
of
the e
con
om
y (
GD
P)
15%
Fed
era
l re
ceip
ts a
s a
share
of
the e
con
om
y
(GD
P)
Socia
l Secu
rity
Healt
h P
rogra
ms
Defe
nse
Net
Inte
rest
Ou
tsta
nd
ing f
ed
era
l d
ebt
Ap
ril 15
, 20
10
Debt
held
by t
he p
ubli
c a
s of
Ap
ril 15
, 20
10In
tragovern
men
tal D
ebt
(Debt
govern
men
t ow
es
itse
lf)
Th
e fi
scal
year
that
en
ded
on
Sep
tem
ber
30
, 20
09 w
as n
ot
a g
ood
on
e f
or
the U
nit
ed
Sta
tes g
overn
men
t an
d f
or
man
y
Am
eri
can
s.
As y
ou
wil
l fi
nd
in
th
is C
itiz
en
s’
Gu
ide,
the U
.S.
Govern
men
t exp
eri
en
ced
th
e l
arg
est
defi
cit
(in
doll
ar
term
s)
in i
ts h
isto
ry—
$1.
4 t
rill
ion
. In
ad
dit
ion
, th
e f
ed
era
l govern
-
men
t w
as in
a $
61.9
tr
illi
on
fi
nan
cia
l h
ole
com
pris
ed
of
exp
licit
lia
bil
itie
s a
nd
un
fun
ded
pro
mis
es, p
rin
cip
all
y S
ocia
l
Secu
rity
an
d M
ed
icare
, as o
f th
e e
nd
of
fiscal year
20
09. T
hat
is o
ver
$20
0,0
00
per
Am
eri
can
, u
p f
rom
ab
ou
t $
70
,00
0 p
er
Am
eri
can
at
the e
nd
of
fiscal
year
20
00
.
Imp
ort
an
tly,
wh
ile t
he fi
scal
20
09 y
ear
defi
cit
an
d t
he p
ro-
jecte
d $
1.3 tri
llio
n-p
lus
defi
cit
for
fisc
al year
2010
are
matt
ers
of
pu
bli
c c
on
cern
, th
ey a
re l
arg
ely
du
e t
he e
ffect
of
the r
ecess
ion
an
d a w
eak econ
om
y, tw
o u
nd
ecla
red
an
d u
nfi
nan
ced
w
ars
,
the s
tim
ulu
s bil
l, a
nd
severa
l fe
dera
l ass
ista
nce a
nd
bail
ou
t ef-
fort
s. A
ll o
f th
ese
facto
rs a
re t
em
pora
ry a
nd
wil
l p
ass
over
tim
e.
Th
ere
fore
, th
e r
eal th
reat
to o
ur
coll
ecti
ve f
utu
re i
s th
e lon
ger-
term
str
uctu
ral
defi
cit
s, e
scala
tin
g d
ebt
levels
an
d b
urg
eon
ing
inte
rest
paym
en
ts t
hat
we a
re p
roje
cte
d t
o e
xp
eri
en
ce a
fter
the
econ
om
y r
ecovers
, aft
er
un
em
plo
ym
en
t le
vels
decli
ne,
aft
er
the w
ars
are
over,
an
d o
nce w
e a
re p
ast
th
e r
ecen
t cri
ses.
We m
ust
begin
to t
ake s
tep
s to
ad
dre
ss t
his
majo
r ch
all
en
ge
befo
re w
e p
ass a
tip
pin
g p
oin
t an
d o
ur
fore
ign
len
ders
lose
con
fid
en
ce i
n o
ur
ab
ilit
y t
o p
ut
ou
r fe
dera
l fi
nan
cia
l h
ou
se
in o
rder.
Yes,
we c
an
take s
tep
s t
o c
reate
a b
ett
er
futu
re i
f
“We th
e Peop
le”
becom
e in
form
ed
an
d in
volv
ed
. H
ow
ever,
we m
ust
take s
tep
s t
o e
nsu
re t
hat
ou
r ele
cte
d r
ep
resen
tati
ves
make t
ou
gh
ch
oic
es i
n c
on
necti
on
wit
h f
ed
era
l b
ud
get
an
d
sp
en
din
g con
trols
, socia
l in
su
ran
ce re
form
s (i
n p
arti
cu
lar,
Socia
l Secu
rity
an
d M
ed
icare
), an
d ta
x re
form
, w
hic
h w
ill
gen
era
te m
ore
reven
ues.
Th
e s
oon
er
we a
ct
the b
ett
er
becau
se
tim
e i
s n
ot
work
ing i
n o
ur
favor.
We a
t th
e P
ete
r G
. Pete
rson
Fou
nd
ati
on
are
ded
icate
d t
o
pro
moti
ng m
ore
fed
era
l fi
nan
cia
l re
sp
on
sib
ilit
y a
nd
accou
nt-
ab
ilit
y t
od
ay i
n o
rder
to c
reate
more
op
portu
nit
y t
om
orr
ow
.
Th
is i
nclu
des r
ais
ing p
ub
lic a
ware
ness a
bou
t key e
con
om
ic
ch
all
en
ges, an
d w
ork
ing t
o b
rin
g A
meri
can
s t
ogeth
er
to fi
nd
sen
sib
le a
nd
su
sta
inab
le s
olu
tion
s t
hat
tran
scen
d a
ge,
party
lin
es a
nd
id
eolo
gic
al
dif
fere
nces.
Ple
ase j
oin
ou
r fi
gh
t fo
r A
meri
ca’s
fu
ture
by s
ign
ing u
p a
t
ww
w.p
gp
f.org
. W
ork
ing togeth
er,
we w
ill keep
Am
eri
ca s
tron
g
an
d t
he A
meri
can
Dre
am
ali
ve f
or
futu
re g
en
era
tion
s.
Sin
cere
ly,
Pete
r G
. Pete
rson
CH
AIR
MA
N O
F T
HE
BO
AR
D
David
M. W
alk
er
PR
ES
IDE
NT
AN
D C
EO
1.L
ast
year,
at
$1.
4 t
rill
ion
or
9.9
perc
en
t of
gro
ss d
om
esti
c p
rod
uct
(GD
P),
th
e U
S d
efi
cit
was t
he l
arg
est
sin
ce t
he e
nd
of
Worl
d W
ar
II. B
y
the e
nd
of
this
year
the e
sti
mate
d d
efi
cit
wil
l again
reach
$1.
4 t
rill
ion
.
Ou
r cu
rren
t n
ati
on
al d
eb
t is
$12
.9 t
rill
ion
, or
nearl
y 9
0 p
erc
en
t of
GD
P.
Of
this
deb
t, t
he a
mou
nt
held
by t
he p
ub
lic (
i.e., b
y i
nd
ivid
uals
, corp
o-
rati
on
s, sta
te o
r lo
cal govern
men
ts, an
d f
ore
ign
en
titi
es)
is o
ver
$8
tri
l-
lio
n, o
r 5
7 p
erc
en
t o
f G
DP
. E
ven
ad
justi
ng f
or
infl
ati
on
, b
oth
of
these
nu
mb
ers
are
mo
re t
ha
n d
ou
ble
th
eir
siz
e f
rom
ju
st
10 y
ears
ago.
Th
e d
efi
cit
s f
or
fiscal
years
20
09 a
nd
20
10 a
re l
arg
ely
att
rib
uta
ble
to
sig
nifi
can
t d
ecli
nes i
n r
even
ue d
ue t
o a
recessio
n a
nd
weak e
con
om
y,
the c
ost
of
the w
ars
in
Ira
q a
nd
Afg
han
ista
n,
an
d v
ari
ou
s g
overn
men
t
bail
ou
ts a
nd
sti
mu
lus a
cti
on
s. T
hese i
tem
s d
o n
ot
rep
resen
t lo
ng-t
erm
an
d r
ecu
rrin
g fi
scal ch
all
en
ges. H
ow
ever,
even
aft
er
the e
con
om
y r
ecov-
ers
, th
e s
pecia
l fe
dera
l in
terven
tion
s a
re c
om
ple
te,
the w
ars
are
over,
an
d u
nem
plo
ym
en
t le
vels
are
dow
n,
defi
cit
s a
nd
deb
t are
exp
ecte
d t
o
gro
w a
t a r
ap
id r
ate
. A
s a
resu
lt,
the U
.S.
wil
l fi
nd
its
elf
in
an
un
su
s-
tain
ab
le fi
scal
posit
ion
in
th
e y
ears
to c
om
e. If
cu
rren
t p
oli
cie
s a
re l
eft
un
ch
an
ged
, d
eb
t h
eld
by t
he p
ub
lic i
s p
roje
cte
d t
o s
pik
e e
ven
fu
rth
er,
reach
ing o
ver
30
0 p
erc
en
t of
GD
P i
n 2
040
(se
e F
igu
re 1
).
Nati
on
al att
en
tion
is
now
focu
sed
on
wh
at
it w
ill ta
ke t
o r
ecover
from
a
severe
recess
ion
th
at h
as
aff
ecte
d th
e liv
eli
hood
s of m
illi
on
s of A
meri
can
s.
In M
arc
h 2
010
, 9.7
perc
en
t of
the U
.S.
pop
ula
tion
was
joble
ss,
com
pa-
rable
to u
nem
plo
ym
en
t le
vels
of th
e e
arl
y 1
980
s. M
an
y a
dd
itio
nal w
ork
ers
were
un
der-
em
plo
yed
. Poli
cym
akers
are
lik
ely
to p
rovid
e f
un
din
g in
2010
that
is i
nte
nd
ed
to s
up
port
job c
reati
on
an
d e
con
om
ic g
row
th. A
lth
ou
gh
the a
dd
itio
nal sp
en
din
g w
ill in
cre
ase
th
e n
ear-
term
defi
cit
, it
wil
l h
elp
to
boost
econ
om
ic a
cti
vit
y. I
n t
he m
ed
ium
-term
, h
ow
ever,
ou
r n
ati
on
sti
ll
has
to g
rap
ple
wit
h t
he p
oli
cie
s con
trib
uti
ng t
o o
ur
gro
win
g r
ed
in
k.
An
agin
g p
op
ula
tion
an
d r
isin
g h
ealt
hcare
costs
exacerb
ate
ou
r fi
s-
cal
dil
em
ma.
Wit
hin
th
e n
ext
year,
th
e old
est
of
the 78 m
illi
on
b
ab
y
boom
ers
wil
l re
ach
fu
ll r
eti
rem
en
t age f
or
Socia
l Secu
rity
an
d M
ed
icare
.
Mean
wh
ile, h
ealt
hcare
cost
s con
tin
ue t
o g
row
at
an
un
pre
ced
en
ted
rate
.
In t
en
years
, h
ealt
hcare
cost
s are
an
ticip
ate
d t
o r
each
rou
gh
ly $
12,0
00
pe
r p
ers
on
(an
in
cre
ase
of
over
50
perc
en
t fr
om
th
is y
ear’s
est
imate
).
Wh
y s
hou
ld w
e b
e c
on
cern
ed
? D
ela
yin
g a
cti
on
wil
l m
ake it
that
mu
ch
more
dif
ficu
lt t
o r
evers
e o
ur
fiscal cou
rse. A
s t
he d
eb
t gro
ws, in
tere
st
on
FI
GU
RE
1
.
SO
UR
CE
S:
0200
400
600
800
1000
1200%
1800
1840
1880
1920
1960
2000
2040
2080
AC
TU
AL
PR
OJE
CT
ED
CIV
ILW
AR
31%
TA
RP
&R
EC
ES
SIO
N5
3%
20
40
30
3%
GR
EA
TD
EP
RE
SS
ION
44
%
WW
I3
0%
WW
II11
3%
the d
eb
t w
ill skyro
cket.
In
fact,
in
ju
st
a d
ozen
years
based
on
ou
r p
res-
en
t p
ath
, ou
r in
tere
st e
xp
en
ses
wil
l qu
ad
rup
le, b
ecom
ing t
he larg
est
sin
gle
lin
e i
tem
in
th
e f
ed
era
l b
ud
get
—la
rger
than
defe
nse,
Med
icare
or
Socia
l Secu
rity
. Tod
ay t
he U
.S.
govern
men
t sp
en
ds 1
perc
en
t of
the
tota
l econ
om
y o
n i
nte
rest
on
th
e d
eb
t. B
y 2
040
, assu
min
g t
hat
the U
.S.
does n
ot
have t
o p
ay a
ris
k p
rem
ium
, fe
dera
l in
tere
st
costs
wil
l accou
nt
for
14 p
erc
en
t of
the e
nti
re U
.S. econ
om
y.
Cu
rren
t in
tere
st r
ate
s are
low
com
pare
d t
o h
isto
rical
levels
. If
in
ter-
est
rate
s ri
se j
ust
tw
o p
erc
en
tage p
oin
ts, in
tere
st c
ost
s alo
ne c
ou
ld r
ep
-
rese
nt
ab
ou
t 20
p
erc
en
t of
the econ
om
y b
y 20
40
. Fail
ure
to
ad
dre
ss
the l
on
g-t
erm
pro
ble
m w
ill
lead
to c
om
pou
nd
ing i
nte
rest
costs
, w
hic
h,
ab
sen
t d
ram
ati
c r
efo
rms, w
ill
accou
nt
for
an
overw
helm
ing p
orti
on
of
the b
ud
get
in t
he f
utu
re.
Borr
ow
ing at
the le
vels
p
roje
cte
d u
nd
er
ou
r cu
rren
t p
oli
cy p
ath
wou
ld c
all
in
to q
uest
ion
ou
r abil
ity t
o m
an
age o
ur
nati
on
’s fi
scal
aff
air
s,
an
d r
esu
lt i
n s
harp
ly h
igh
er
inte
rest
rate
s. T
hat,
in
tu
rn, w
ou
ld b
e l
ike-
ly t
o c
au
se e
ven
more
severe
econ
om
ic c
hall
en
ges,
inclu
din
g f
urth
er
dow
nw
ard
pre
ssu
re o
n t
he d
oll
ar;
hig
her
pri
ces f
or
oil
, fo
od
an
d o
ther
good
s;
an
d g
reate
r le
vels
of
un
em
plo
ym
en
t. H
ard
as i
t is
to i
magin
e,
ou
r n
ati
on
is o
n c
ou
rse t
ow
ard
s a
n e
ven
wors
e e
con
om
ic c
risis
th
an
du
rin
g t
he p
ast
few
years
.
Wh
at
need
s to
b
e d
on
e? O
ur
ele
cte
d offi
cia
ls m
ust
wa
ke
up
an
d,
on
ce t
he e
con
om
y r
ecovers
, ta
ke s
tep
s t
o c
lose t
he g
ap
betw
een
sp
en
d-
ing a
nd
reven
ue. B
y 2
024, h
isto
rical
reven
ue l
evels
of
ab
ou
t 18
perc
en
t
of
GD
P w
ill
not
even
cover
pro
jecte
d c
osts
of
net
inte
rest,
Socia
l Secu
-
rity
, M
ed
icare
an
d M
ed
icaid
. T
his
mean
s t
he g
overn
men
t w
ill
need
to
borr
ow
to p
ay for
oth
er
essen
tial p
rogra
ms s
uch
as e
du
cati
on
, tr
an
sp
or-
tati
on
, n
ati
on
al
defe
nse a
nd
hom
ela
nd
secu
rity
.
To h
elp
ad
dre
ss o
ur
fiscal
ch
all
en
ges,
the P
resid
en
t esta
bli
sh
ed
th
e
Nati
on
al C
om
mis
sio
n o
n F
iscal R
esp
on
sib
ilit
y a
nd
Refo
rm o
n F
eb
ruary
18, 20
10. T
his
bip
arti
san
com
mis
sio
n is c
harg
ed
wit
h t
he t
ask o
f p
rovid
-
ing r
ecom
men
dati
on
s o
n h
ow
to b
ala
nce t
he b
ud
get
by 2
015
(exclu
din
g
inte
rest
costs
on
th
e f
ed
era
l d
eb
t) a
nd
exam
inin
g l
on
g-t
erm
solu
tion
s
for o
ur g
row
ing e
nti
tlem
en
t p
rogram
s.
Th
e c
om
mis
sio
n,
ch
air
ed
by
form
er
Cli
nto
n C
hie
f of
Sta
ff E
rskin
e B
ow
les a
nd
form
er
Rep
ub
lican
Sen
ate
Wh
ip A
lan
Sim
pson
, w
ill
issu
e i
ts r
ecom
men
dati
on
s b
y D
ecem
-
ber
1, 2
010
. W
hil
e t
he o
utc
om
e f
rom
th
is c
om
mis
sio
n r
em
ain
s t
o b
e
seen
, th
e u
nd
en
iab
le t
ruth
is t
hat
the t
ime f
or
mean
ingfu
l acti
on
to
defu
se o
ur
fiscal
tim
e b
om
b h
as c
om
e.
2. They also determ
ine h
ow
to fi
nan
ce t
hose d
ecis
ion
s,
wh
eth
er
thro
ugh
coll
ecti
ng t
axes f
rom
in
div
idu
als
an
d b
usin
esses, assessin
g v
ari
ou
s p
re-
miu
ms o
r fe
es, or
borr
ow
ing f
rom
dom
esti
c a
nd
in
tern
ati
on
al
len
ders
.
Up
u
nti
l th
e G
reat
Dep
ressio
n in
th
e 19
30
s,
the U
.S.
exp
eri
en
ced
more
bu
dget
su
rplu
ses t
han
defi
cit
s.
Sin
ce W
orl
d W
ar
II,
we h
ave b
al-
an
ced
th
e f
ed
era
l b
ud
get
on
ly a
dozen
tim
es,
wit
h o
nly
fou
r of
those,
fiscal
years
1998
-20
01,
occu
rrin
g i
n t
he p
ast
40
years
(se
e F
igu
re 2
). O
f
the f
ou
r years
wh
en
we h
ad
su
rplu
ses, on
ly i
n fi
scal
year
20
00
did
th
e
fed
era
l govern
men
t h
ave a
n o
pera
tin
g s
urp
lus (
wh
ich
exclu
des c
on
sid
-
era
tion
of
the S
ocia
l Secu
rity
su
rplu
s).
In
th
e p
ast
40
years
, d
efi
cit
s a
s a
perc
en
tage o
f th
e e
con
om
y h
ave a
vera
ged
sli
gh
tly o
ver
3 p
erc
en
t.
In
fisc
al year
20
09, w
e e
xp
eri
en
ced
a r
ecord
defi
cit
of n
earl
y 1
0 p
erc
en
t
of
GD
P. T
hat
short
fall
was
a r
esu
lt o
f a low
er
level of
reven
ue (
15 p
erc
en
t
of
GD
P)
larg
ely
du
e t
o t
he r
ecess
ion
, an
d h
igh
er
spen
din
g (
25 p
erc
en
t
of
GD
P)
pri
mari
ly r
efl
ecti
ng t
he T
rou
ble
d A
sset
Reli
ef
Pro
gra
m (
TA
RP
),
Fan
nie
M
ae an
d Fre
dd
ie M
ac su
pp
ort
, in
cre
ase
d u
nem
plo
ym
en
t ben
-
efi
ts a
nd
oth
er
stim
ulu
s an
d b
ail
ou
t acti
on
s by t
he f
ed
era
l govern
men
t.
Wh
at’s
even
more
tro
ubli
ng i
s th
at
un
der
cu
rren
t la
w t
he g
ap
betw
een
reven
ue a
nd
sp
en
din
g w
iden
s st
ead
ily o
ver
the n
ext
30
years
an
d b
e-
yon
d, con
tin
uin
g w
ell
aft
er
full
econ
om
ic r
ecovery (
see
Fig
ure
3).
Th
ese
an
nu
al sh
ort
fall
s are
th
e s
tru
ctu
ral d
efi
cit
s, w
hic
h, if
left
un
ch
ecked
, w
ill
thre
ate
n t
he s
tate
of
ou
r n
ati
on
.
Wh
at
do a
ll o
f th
ese
nu
mb
ers
ult
imate
ly m
ean
for
us
as
cit
izen
s? I
f w
e
con
tin
ue d
ow
n t
his
path
, ri
sin
g d
efi
cit
an
d d
eb
t le
vels
wil
l im
pact
ou
r
everyd
ay l
ives
by t
hre
ate
nin
g o
ur
nati
on
’s e
con
om
ic s
tren
gth
(lo
wer
in-
vest
men
t an
d g
row
th),
ou
r in
tern
ati
on
al
statu
s (w
eaker
stan
din
g i
n t
he
worl
d a
nd
in
tern
ati
on
al cap
ital m
ark
ets
), o
ur
stan
dard
of
livin
g (
hig
her
inte
rest
ra
tes
for
loan
s an
d m
ort
gages,
h
igh
er
un
em
plo
ym
en
t ra
tes,
low
er
wages)
, an
d p
oss
ibly
ou
r n
ati
on
al
secu
rity
(h
igh
er
dep
en
den
cy
FIG
UR
E 2
.
AC
TU
AL
PR
OJE
CT
ED
20
09
9.9
%
SU
RP
LU
S
SO
UR
CE
S:
SO
UR
CE
S:
FI
GU
RE
3
.
on
fore
ign
govern
men
ts t
hat
pu
rch
ase
U.S
. d
eb
t). M
ore
over,
hig
her
deb
t
levels
mean
more
reso
urc
es
devote
d t
o c
om
pou
nd
ing in
tere
st p
aym
en
ts
on
th
e d
eb
t, w
hic
h in
cre
asi
ngly
go a
bro
ad
rath
er
than
sta
y in
th
is c
ou
n-
try.
Th
us,
we h
ave f
ew
er
reso
urc
es
avail
ab
le f
or
dom
est
ic i
nvest
men
t in
rese
arc
h a
nd
develo
pm
en
t, e
du
cati
on
, in
frast
ructu
re a
nd
oth
er
cru
cia
l
invest
men
ts t
hat
main
tain
ou
r econ
om
ic c
om
peti
tiven
ess
.
Ch
angi
ng
Co
mp
osi
tio
n o
f S
pen
din
g
Fed
era
l sp
en
din
g c
an
be d
ivid
ed
in
to fi
ve m
ajo
r cate
gori
es:
net
inte
rest
(in
tere
st
costs
on
th
e f
ed
era
l d
eb
t), Socia
l Secu
rity
, M
ed
icare
an
d M
ed
-
icaid
, n
ati
on
al
defe
nse,
an
d a
ll o
ther
pro
gra
ms,
wh
ich
in
clu
des a
reas
like ed
ucati
on
, in
com
e secu
rity
, tr
an
sp
orta
tion
, agri
cu
ltu
re,
hou
sin
g
sp
ace a
nd
scie
nce,
natu
ral
resou
rces,
an
d h
ealt
h p
rogram
s l
ike t
he
Nati
on
al
Insti
tute
of
Healt
h a
nd
Cen
ter f
or D
isease C
on
trol
an
d P
re-
ven
tion
(se
e F
igu
re 4
).
Sin
ce 1
970
, th
e d
ecli
ne i
n d
efe
nse s
pen
din
g a
s a
porti
on
of
the t
ota
l
bu
dget
has
been
off
set
by t
he g
row
th in
th
e m
ajo
r en
titl
em
en
t p
rogra
ms
(Socia
l Secu
rity
, M
ed
icare
an
d M
ed
icaid
). S
pen
din
g a
s a
perc
en
tage o
f
GD
P h
as g
row
n f
rom
its
his
tori
cal
avera
ge o
f 20
perc
en
t of
GD
P o
ver
the last
50
years
to r
ou
gh
ly 2
4 p
erc
en
t of
GD
P in
20
10, an
d is a
nti
cip
at-
ed
to r
each
40
perc
en
t of
GD
P in
20
40
un
der
cu
rren
t p
oli
cie
s. T
he t
hre
e
majo
r en
titl
em
en
t p
rogra
ms (
Med
icare
, M
ed
icaid
an
d S
ocia
l Secu
rity
)
are
th
e p
rim
ary d
rivers
of
that
lon
g-t
erm
gro
wth
. O
f th
ese,
Med
icare
an
d M
ed
icaid
rep
resen
t th
e g
reate
st
ch
all
en
ge.
Eco
no
mic
Rec
ove
ry
As t
he U
nit
ed
Sta
tes c
on
tin
ues t
o r
ecover
from
on
e o
f th
e m
ost
severe
econ
om
ic d
ow
ntu
rns in
recen
t h
isto
ry,
we w
ill con
tin
ue t
o s
ee a
dd
itio
n-
al
sp
en
din
g i
n t
he n
ear
term
for
job
cre
ati
on
an
d e
con
om
ic r
ecovery.
Th
e r
ecen
t re
cessio
n—
wh
ich
laste
d f
rom
late
20
07 t
hro
ugh
mid
-20
09—
dis
rup
ted
th
e h
ou
sin
g a
nd
fin
an
cia
l m
ark
ets
, le
ft m
illi
on
s o
f A
meri
-
can
s u
nem
plo
yed
, an
d cre
ate
d a gre
ate
r n
eed
fo
r in
com
e assis
tan
ce
pro
gra
ms.
Last
year,
reven
ue l
evels
dro
pp
ed
to t
heir
low
est
poin
t in
recen
t h
isto
ry,
fall
ing t
o u
nd
er
15 p
erc
en
t of
GD
P (
well
belo
w t
he h
is-
tori
cal
avera
ge o
f ab
ou
t 18
perc
en
t of
GD
P).
Th
e C
on
gre
ssio
nal
Bu
dget
Offi
ce (
CB
O)
esti
mate
s t
hat
the A
meri
can
Recovery a
nd
Rein
vestm
en
t A
ct
of
20
09 (
AR
RA
), t
he e
con
om
ic s
tim
u-
FIG
UR
E 4
.
SO
UR
CE
S:
lus p
ackage, h
as in
cre
ased
fed
era
l sp
en
din
g b
y $
158 b
illi
on
an
d low
ere
d
reven
ues b
y $
114 b
illi
on
th
rou
gh
Decem
ber
20
09. T
he h
igh
er
sp
en
din
g
levels
were
pri
mari
ly f
or
govern
men
t p
urc
hases o
f good
s a
nd
servic
es,
aid
to s
tate
an
d l
ocal
govern
men
ts,
an
d i
ncom
e t
ran
sfe
r p
aym
en
ts t
o
ind
ivid
uals
. T
he r
even
ue r
ed
ucti
on
pri
mari
ly r
efl
ecte
d t
ax c
uts
for
low
-
er
an
d m
idd
le-i
ncom
e p
eop
le, exte
nsio
n o
f fi
rst-
tim
e h
om
eb
uyer
cre
dit
,
an
d c
han
ges t
o c
orp
ora
te t
axes. C
BO
esti
mate
s t
hat
the s
tim
ulu
s p
ack-
age ad
ded
b
etw
een
1
mil
lion
an
d 2.1
m
illi
on
jo
bs an
d in
cre
ased
th
e
GD
P b
y 1
.5 p
erc
en
t to
3.5
perc
en
t in
Octo
ber
thro
ugh
Decem
ber
20
09.
HE
AL
TH
CA
RE
IS
TH
E M
AJ
OR
PL
AY
ER
AT
TH
E H
EA
RT
OF
OU
R F
ISC
AL
cri
sis.
Med
icare
, w
hic
h r
eti
rees
rely
on
for
their
healt
h i
nsu
ran
ce,
an
d
Med
icaid
, w
hic
h p
rovid
es
healt
h c
are
for
low
-in
com
e i
nd
ivid
uals
, ac-
cou
nt
for
most
of
the p
roje
cte
d lon
g-t
erm
gro
wth
in
sp
en
din
g. Togeth
er,
they accou
nt
for
5 p
erc
en
t of
tod
ay’s
G
DP
(2
0 p
erc
en
t of
spen
din
g);
wit
hin
30
years
th
ey a
re p
roje
cte
d t
o c
ost
11
perc
en
t of
GD
P (
25 p
erc
en
t
of
spen
din
g).
By 2
080
, accord
ing t
o p
roje
cti
on
s, t
he t
wo p
rogra
ms
alo
ne
wil
l re
pre
sen
t 18
perc
en
t of
GD
P, eq
ual
to t
he h
isto
rical
avera
ge l
evel
of
fed
era
l re
ven
ues
(see
Fig
ure
5).
Con
seq
uen
tly,
an
y lon
g-t
erm
pla
n t
o s
ta-
bil
ize t
he n
ati
on
al
deb
t as
a p
erc
en
tage o
f th
e o
vera
ll e
con
om
y w
ill
de-
pen
d o
n s
uccess
full
y c
on
troll
ing t
he c
ost
s of
fed
era
l h
ealt
h p
rogra
ms.
Th
ere
are
tw
o c
ore
reason
s w
hy t
he c
ost
of
Med
icare
is g
row
ing s
o
fast:
as b
ab
y b
oom
ers
reti
re a
nd
peop
le l
ive l
on
ger
aft
er
the a
ge o
f 65,
the n
um
ber
of
reti
rees is in
cre
asin
g; an
d o
vera
ll h
ealt
h c
are
costs
in
th
e
U.S
. are
ris
ing r
ap
idly
. It
is t
he g
row
th i
n h
ealt
h c
are
costs
th
at
rep
re-
sen
ts t
he m
ajo
r th
reat
to o
ur
sta
nd
ard
of
livin
g.
Cu
rren
tly,
Am
eri
can
s s
pen
d o
n a
vera
ge $
8,0
00
per
year
on
healt
h
care
—fa
r m
ore
th
an
an
y oth
er
develo
ped
n
ati
on
. C
om
para
ble
h
igh
-
incom
e c
ou
ntr
ies s
uch
as E
ngla
nd
, G
erm
an
y, J
ap
an
, an
d C
an
ad
a s
pen
d
betw
een
on
e-h
alf
an
d t
wo-t
hir
ds o
f w
hat
the U
.S. sp
en
ds o
n h
ealt
h c
are
per
cap
ita.
Yet,
ou
r h
ealt
h o
utc
om
es a
re n
o b
ett
er,
an
d b
y s
om
e m
ea-
su
res a
re e
ven
wors
e. For
exam
ple
, th
e U
S r
an
ks p
oorl
y a
mon
g O
rgan
i-
sati
on
for
Econ
om
ic C
o-o
pera
tion
an
d D
evelo
pm
en
t (O
EC
D)
cou
ntr
ies
in t
erm
s o
f ob
esit
y a
nd
in
fan
t m
orta
lity
. U
.S. h
ealt
h c
are
costs
are
pro
-
jecte
d t
o g
row
even
fu
rth
er
in t
he n
ear
futu
re,
eati
ng u
p a
larg
er
an
d
larg
er
sh
are
of
ou
r econ
om
y. I
n 1
980
, h
ealt
h c
are
sp
en
din
g m
ad
e u
p 8
perc
en
t of
ou
r econ
om
y. B
y 2
00
0 i
t gre
w t
o n
earl
y 1
4 p
erc
en
t, a
nd
by
20
20
it
is a
nti
cip
ate
d t
o e
xceed
20
perc
en
t. F
rom
20
20
on
, h
ealt
h c
are
FI
GU
RE
5
.
SO
UR
CE
S:
costs
are
pro
jecte
d t
o s
kyro
cket,
ab
sen
t syste
mic
refo
rm (
see
Fig
ure
6).
Stu
die
s b
y e
con
om
ist
Uw
e R
ein
hard
t, t
he M
cK
insey G
lob
al
Insti
tute
an
d t
he I
nte
rnati
on
al
Fed
era
tion
of
Healt
h P
lan
s s
uggest
that
a m
ajo
r
reason
wh
y U
.S. h
ealt
h c
are
is s
o m
uch
more
exp
en
siv
e t
han
th
e r
est
of
the w
orl
d i
s t
hat
the p
rice o
f ou
r m
ed
ical
servic
es i
s h
igh
er.
A m
ed
ical
ap
poin
tmen
t, p
rescri
pti
on
dru
g,
su
rgery o
r te
st
wil
l, i
n g
en
era
l, c
ost
more
in
th
e U
.S.
than
in
E
uro
pe.
Bu
t p
rices are
n
ot
the on
ly d
river
of
nati
on
al
costs
. A
meri
can
s a
lso r
eceiv
e a
lot
of
un
necessary m
ed
ical
care
. Stu
die
s b
y t
he D
artm
ou
th A
tlas P
roje
ct
have s
how
n t
hat
som
e
regio
ns o
f th
e c
ou
ntr
y, s
uch
as F
lori
da, N
ew
Jers
ey,
an
d T
exas, con
su
me
man
y m
ore
exp
en
siv
e m
ed
ical
servic
es t
han
th
e r
est
of
the c
ou
ntr
y—
an
d a
re n
o h
ealt
hie
r fo
r it
.
Most
exp
ert
s agre
e t
hat
the w
ay t
hat
healt
h c
are
is
paid
for
in t
he
U.S
. d
rives
up
cost
s. D
octo
rs in
th
e U
nit
ed
Sta
tes
are
p
aid
on
a fe
e-
for-
servic
e b
asi
s, m
ean
ing t
hat
they h
ave a
n in
cen
tive t
o o
rder
more
pro
-
ced
ure
s an
d s
ch
ed
ule
more
ap
poin
tmen
ts.
Th
ey a
re p
aid
more
if
they
deli
ver
a lot
of
treatm
en
ts (
esp
ecia
lly m
ore
exp
en
sive p
roced
ure
s su
ch
as
CA
T s
can
s an
d M
RIs
), a
syst
em
th
at
may n
ot
resu
lt i
n m
akin
g p
ati
en
ts
healt
hie
r. M
ore
over,
most
Am
eri
can
con
sum
ers
are
not
aw
are
of
how
mu
ch
th
ey s
pen
d o
n h
ealt
h c
are
. In
sura
nce p
ays
for
most
healt
h c
are
cost
s, a
nd
em
plo
yers
pay f
or
most
in
sura
nce.
Econ
om
ic r
ese
arc
h (
Gru
-
ber
an
d K
rueger,
1991)
sh
ow
s th
at
em
plo
yers
giv
e s
mall
er
rais
es
becau
se
of
healt
h c
are
cost
s. A
s a r
esu
lt, th
e p
rocess
of
payin
g f
or
healt
h c
are
is
so i
nd
irect
an
d o
paqu
e t
hat
most
peop
le h
ave l
ittl
e r
easo
n t
o c
on
sid
er
wh
eth
er
or
not
they a
re g
ett
ing g
ood
valu
e f
or
their
healt
h c
are
doll
ar.
Refo
rmin
g h
ealt
h c
are
to b
e m
ore
cost
eff
ecti
ve r
eq
uir
es c
han
gin
g
the e
con
om
ics o
f m
ed
icin
e. It
mean
s r
ep
lacin
g t
he c
urr
en
t fe
e-f
or-
ser-
vic
e s
yste
m w
ith
a s
yste
m t
hat
rew
ard
s d
octo
rs f
or
keep
ing p
ati
en
ts
healt
hy a
nd
avoid
ing u
nn
ecessary o
r in
ap
pro
pri
ate
pro
ced
ure
s. It
als
o
mean
s g
ivin
g c
on
su
mers
an
in
cen
tive t
o k
eep
docto
rs a
nd
oth
er
pro
-
vid
ers
accou
nta
ble
for
qu
ali
ty a
nd
cost.
Th
ose c
han
ges w
ill
involv
e d
if-
ficu
lt c
hoic
es f
or
socie
ty. H
ealt
h is p
recio
us a
nd
most
con
su
mers
do n
ot
wan
t to
sp
are
an
y e
xp
en
se t
hat
mig
ht
pote
nti
all
y i
mp
rove t
heir
healt
h.
Neverth
ele
ss, ch
oic
es h
ave t
o b
e m
ad
e b
ecau
se c
osts
are
gro
win
g f
aste
r
than
th
e g
overn
men
t or
ou
r p
eop
le c
an
aff
ord
an
d s
usta
in.
In M
arc
h 2
010
, C
on
gre
ss p
assed
an
d P
resid
en
t O
bam
a s
ign
ed
in
to
FIG
UR
E 6
.
SO
UR
CE
S:
01960
1970
1980
1990
2000
2010
2020
2030
2040
5101520253035%
5
AC
TU
AL
PR
OJE
CT
ED
7
17
8
1213
22
29
34
law
sw
eep
ing h
ealt
h c
are
refo
rm. C
BO
esti
mate
s t
hat
by 2
019
th
e n
ew
law
wil
l p
rovid
e f
ed
era
lly-s
ub
sid
ized
healt
h in
su
ran
ce f
or
ab
ou
t 32 m
il-
lion
Am
eri
can
s w
ho w
ou
ld o
therw
ise b
e u
nin
su
red
. T
he h
isto
ric l
aw
takes s
tep
s i
n t
he d
irecti
on
of
more
cost-
eff
ecti
ve c
are
by p
rom
oti
ng
exp
eri
men
ts w
ith
new
paym
en
t syste
ms, com
para
tive e
ffecti
ven
ess r
e-
searc
h, an
d e
lectr
on
ic h
ealt
h r
ecord
s.
Un
der
the n
ew
la
w,
the exp
an
sion
of
healt
h in
sura
nce covera
ge is
most
ly p
aid
for
by s
low
ing t
he g
row
th o
f M
ed
icare
paym
en
ts t
o h
osp
itals
an
d o
ther
pro
vid
ers
, an
d i
ncre
asi
ng M
ed
icare
payro
ll t
axes.
For
red
uced
Med
icare
paym
en
t ra
tes
to b
e s
ust
ain
able
th
e o
vera
ll h
ealt
h c
are
syst
em
wil
l h
ave to b
ecom
e m
ore
effi
cie
nt an
d k
eep
dow
n u
nn
ecess
ary
cost
s. O
th-
erw
ise M
ed
icare
paym
en
ts w
ill n
ot
be in
lin
e w
ith
th
e c
ost
s of
the o
vera
ll
healt
h c
are
syst
em
. T
hat
in t
urn
cou
ld lim
it M
ed
icare
ben
efi
cia
ries’
access
to p
rovid
ers
, or
con
trib
ute
to c
ost
-sh
ifti
ng t
o p
rivate
payers
. E
ith
er
resu
lt
cou
ld e
ven
tuall
y f
orc
e a
n u
pw
ard
revis
ion
in
paym
en
t ra
tes.
Th
e p
roje
cte
d p
aym
en
t ra
te c
uts
an
d n
ew
payro
ll t
ax i
ncom
e w
ou
ld
sig
nifi
can
tly r
ed
uce u
nfu
nd
ed
Med
icare
pro
mis
es o
ver
the n
ext 75 y
ears
,
bu
t th
ose r
esou
rces w
ill
be n
eed
ed
to p
ay f
or
the n
ew
healt
h i
nsu
ran
ce
su
bsid
ies.
Con
seq
uen
tly,
mu
ch
work
rem
ain
s t
o s
tab
iliz
e h
ealt
h c
are
costs
as a
perc
en
tage o
f th
e fed
era
l b
ud
get
an
d t
he o
vera
ll e
con
om
y a
nd
keep
tota
l fe
dera
l sp
en
din
g f
or
healt
h c
are
fro
m g
row
ing f
aste
r th
an
ou
r w
illi
ngn
ess t
o p
ay.
SO
CIA
L S
EC
UR
ITY
IS
TH
E M
AJ
OR
SO
UR
CE
OF
IN
CO
ME
FO
R M
OS
T
reti
rees
in A
meri
ca, an
d m
ost
work
ers
pay m
ore
in
Socia
l Secu
rity
payro
ll
taxes
than
in
in
com
e t
axes.
Payro
ll t
axes
are
cre
dit
ed
to t
he c
om
bin
ed
Socia
l Secu
rity
tru
st f
un
d,
wh
ich
, li
ke t
he M
ed
icare
tru
st f
un
d,
is a
n a
c-
cou
nti
ng m
ech
an
ism
th
at
tracks
ded
icate
d p
ayro
ll t
ax in
com
e a
nd
ben
efi
t
paym
en
ts. W
hil
e t
he t
rust
fu
nd
s carr
y d
isti
nct
legal, p
oli
tical
an
d m
ora
l
sign
ifican
ce, th
ey d
o n
ot
have im
med
iate
bu
dgeta
ry o
r econ
om
ic im
pact.
Over
the p
ast
25 y
ears
, Socia
l Secu
rity
has
con
sist
en
tly b
rou
gh
t in
more
tax r
even
ue t
han
it
has
paid
ou
t in
ben
efi
ts,
cre
ati
ng a
posi
tive
bala
nce i
n t
he t
rust
fu
nd
. If
it
had
not
been
for
the S
ocia
l Secu
rity
cash
surp
luse
s, o
ur
past
defi
cit
s w
ou
ld h
ave b
een
even
larg
er.
By 2
016
Socia
l
Secu
rity
wil
l st
art
ad
din
g t
o t
he f
ed
era
l d
efi
cit
in
stead
of
red
ucin
g it
(see
Fig
ure
7).
More
recen
t p
roje
cti
on
s sh
ow
th
e r
ecess
ion
cau
sin
g a
tem
po-
rary c
ash
defi
cit
in
th
e n
ear
term
. A
s m
ore
bab
y b
oom
ers
reti
re, b
en
efi
t
paym
en
ts w
ill
incre
asi
ngly
ou
tgro
w S
ocia
l Secu
rity
tax r
even
ue.
Th
at
wave o
f b
ab
y b
oom
er
reti
rem
en
ts i
s n
ot
a d
em
ogra
ph
ic b
lip
: th
e U
.S.
pop
ula
tion
wil
l con
tin
ue t
o i
nclu
de a
larg
er
pro
port
ion
of
old
er
peop
le
than
it
has
up
to n
ow
. G
iven
cu
rren
t p
oli
cy,
th
e S
ocia
l Secu
rity
tru
st
fun
d w
ill
be d
ep
lete
d a
nd
, ab
sen
t p
oli
cy c
han
ges,
th
e p
rogra
m w
ill
lack
suffi
cie
nt
reso
urc
es
to p
ay a
ll o
f it
s sc
hed
ule
d b
en
efi
ts a
s earl
y a
s 20
37.
FI
GU
RE
7.
SO
UR
CE
S:
Th
e r
oot
cau
se o
f Socia
l Secu
rity
’s s
hortf
all
s is t
he s
am
e g
row
th in
re-
tire
es t
hat
is a
ffecti
ng M
ed
icare
’s fi
nan
ces. L
on
ger
life
sp
an
s m
ean
more
years
of
coll
ecti
ng S
ocia
l Secu
rity
ben
efi
ts a
nd
th
us m
ore
fin
an
cia
l d
e-
man
ds o
n t
he s
yste
m. A
t th
e s
am
e t
ime, p
eop
le h
ave b
een
havin
g f
ew
er
ch
ild
ren
th
an
th
ey d
id w
hen
Socia
l Secu
rity
was c
reate
d, slo
win
g g
row
th
in t
he n
um
ber
of
you
nger
work
ers
payin
g S
ocia
l Secu
rity
taxes. In
1950
,
there
were
16 w
ork
ers
payin
g t
axes t
o s
up
port
each
reti
ree. N
ow
th
ere
are
3.3
, an
d b
y 2
040
th
ere
wil
l b
e o
nly
2.
Un
less S
ocia
l Secu
rity
taxes
incre
ase, or
ben
efi
t p
aym
en
ts d
ecre
ase, Socia
l Secu
rity
wil
l re
qu
ire s
pe-
cia
l ap
pro
pri
ati
on
s f
rom
Con
gre
ss t
o f
ulfi
ll c
urr
en
t b
en
efi
t p
rom
ises.
AL
TH
OU
GH
ME
DIC
AR
E,
ME
DIC
AID
, A
ND
SO
CIA
L S
EC
UR
ITY
AR
E M
AN
-
dato
ry s
pen
din
g p
rogra
ms t
hat
do n
ot
dep
en
d o
n a
nn
ual con
gre
ssio
nal
acti
on
to p
ay b
en
efi
ts,
over
on
e-t
hir
d o
f th
e b
ud
get
con
sis
ts o
f d
iscre
-
tion
ary p
rogra
ms t
hat
have t
o b
e f
un
ded
th
rou
gh
an
nu
al
ap
pro
pri
a-
tion
s l
egis
lati
on
.
Th
e l
arg
est
cate
gory o
f d
iscre
tion
ary s
pen
din
g i
s d
efe
nse. In
fact,
for
man
y y
ears
nati
on
al d
efe
nse
was
by f
ar
the larg
est
port
ion
of
the f
ed
era
l
bu
dget.
Sin
ce t
he e
nd
of
Worl
d W
ar
II,
we h
ave g
rad
uall
y r
ed
uced
de-
fen
se s
pen
din
g f
rom
over
half
of
the b
ud
get
to a
bou
t on
e-s
ixth
of
the
bu
dget
by t
he y
ear
20
00
. H
ow
ever,
th
e i
nvasio
ns o
f A
fgh
an
ista
n a
nd
Iraq
have c
au
sed
defe
nse s
pen
din
g t
o in
cre
ase a
s a
sh
are
of
the b
ud
get,
an
d i
t n
ow
sta
nd
s a
t ab
ou
t on
e-fi
fth
of
all
fed
era
l sp
en
din
g.
Th
e d
iscre
tion
ary b
ud
get
als
o i
nclu
des m
an
y v
ital
non
-defe
nse p
ro-
gra
ms.
Su
ch
sp
en
din
g p
ays t
he s
ala
ries o
f m
ost
govern
men
t em
plo
y-
ees a
nd
all
ow
s t
he g
overn
men
t to
op
era
te. H
om
ela
nd
secu
rity
, fo
reig
n
rela
tion
s,
ed
ucati
on
, re
searc
h an
d d
evelo
pm
en
t, d
isaste
r assis
tan
ce,
hig
hw
ays, air
tra
ffic c
on
trol, t
he C
on
gre
ss, th
e S
up
rem
e C
ou
rt,
an
d t
he
op
era
tion
s o
f th
e W
hit
e H
ou
se a
re a
ll e
xam
ple
s o
f d
iscre
tion
ary s
pen
d-
ing. A
bou
t 19
perc
en
t of
the 2
010
bu
dget
con
sis
ts o
f n
on
defe
nse d
iscre
-
tion
ary s
pen
din
g.
NO
TH
ING
IS
FR
EE
, AN
D O
UR
GO
VE
RN
ME
NT
CO
ST
S A
ME
RIC
AN
S M
ON
EY
.
Most
Am
eri
can
s p
ay t
axes
on
th
eir
in
com
e, m
on
ey t
hat
is u
sed
to s
up
port
the f
ed
era
l govern
men
t. H
isto
ricall
y, a
rou
nd
18 p
erc
en
t of
nati
on
al
in-
com
e is
paid
to t
he f
ed
era
l govern
men
t in
th
e f
orm
of
taxes.
Th
at
mon
ey
is t
hen
use
d t
o f
un
d g
overn
men
t’s
op
era
tion
s an
d s
pen
din
g p
rogra
ms.
Th
e m
ajo
rity
of
the g
overn
men
t’s
reven
ue c
om
es
from
th
ree t
yp
es
of
taxes:
in
div
idu
al in
com
e t
axes,
payro
ll t
axes,
an
d c
orp
ora
te in
com
e t
axes.
Incom
e t
axes
are
pro
gre
ssiv
e,
mean
ing h
igh
er
incom
e i
nd
ivid
uals
face
hig
her
tax r
ate
s. H
ow
ever,
payro
ll t
axes
are
regre
ssiv
e b
ecau
se t
hey o
nly
ap
ply
to t
he fi
rst
$10
6,8
00
of
wage i
ncom
e (
in 2
010
), a
nd
an
y e
arn
ings
beyon
d t
hat
are
not
subje
ct
to p
ayro
ll t
axes.
Th
e m
ore
an
in
div
idu
al earn
s
above t
he lim
it (
wh
ich
is
ind
exed
to in
flati
on
), t
he s
mall
er
his
or
her
pay-
roll
taxes
are
as
a p
ort
ion
of in
com
e. C
orp
ora
te in
com
e t
axes
red
uce e
arn
-
ings
for
the s
hare
hold
ers
of
corp
ora
tion
s, w
ho g
en
era
lly h
ave l
arg
er
in-
com
es.
Corp
ora
te in
com
e t
axes
als
o r
esu
lt in
hig
her
pri
ces
to c
on
sum
ers
.
Th
e h
igh
est-
earn
ing 1
perc
en
t of
Am
eri
can
s p
ay f
or
ab
ou
t 24 p
erc
en
t
of
the g
overn
men
t’s t
ax r
even
ue,
an
d t
he t
op
20
perc
en
t p
ay a
bou
t 71
perc
en
t of
tota
l fe
dera
l ta
xes (
see
Fig
ure
8).
In
20
10,
an
esti
mate
d 4
5
perc
en
t of
taxp
ayers
wil
l p
ay n
o i
ncom
e t
axes o
r w
ill
receiv
e a
refu
nd
-
ab
le (
cash
) ta
x c
red
it, b
ut
on
ly 1
3 p
erc
en
t w
ill h
ave t
o p
ay n
o in
com
e t
ax
(or
receiv
e a
cre
dit
) an
d n
o p
ayro
ll t
ax.
Th
e U
.S. ta
x c
od
e is r
idd
led
wit
h s
pecia
l exem
pti
on
s, d
ed
ucti
on
s, an
d
cre
dit
s t
hat
aff
ect
peop
le’s
tax lia
bil
itie
s. For
exam
ple
, h
om
eow
ners
can
ded
uct
the i
nte
rest
cost
on
th
eir
pri
mary m
ortg
ages f
rom
th
eir
taxab
le
incom
e, an
d t
he v
alu
e o
f h
ealt
h i
nsu
ran
ce p
rovid
ed
by a
n e
mp
loyer
is
exem
pt
from
taxati
on
. R
en
ters
an
d p
eop
le w
ho b
uy t
heir
ow
n h
ealt
h
insu
ran
ce d
on
’t g
et
the s
imil
ar
tax b
en
efi
ts.
All
of
these
sp
ecia
l exem
pti
on
s an
d t
ax b
reaks
are
sim
ilar
to d
irect
govern
men
t sp
en
din
g i
n t
hat
they a
lso h
ave a
cost
(in
th
e f
orm
of
re-
du
ced
reven
ues)
th
at
aff
ects
th
e g
overn
men
t’s
“bott
om
lin
e.” T
he T
rea-
sury r
ep
ort
ed
th
at
tax e
xem
pti
on
s an
d d
ed
ucti
on
s fo
r h
ealt
h c
are
cost
alo
ne a
dd
ed
over
$250
bil
lion
per
year
(or
nearl
y h
alf
of
the c
ost
of
the
Dep
art
men
t of
Defe
nse
). T
ax p
oli
cy e
xp
ert
s est
imate
th
at
if w
e e
lim
i-
nate
d a
ll o
f th
e s
pecia
l d
ed
ucti
on
s an
d c
red
its
we c
ou
ld r
ais
e 4
4 p
erc
en
t
more
reven
ue t
han
we d
o n
ow
wit
hou
t actu
all
y r
ais
ing t
ax r
ate
s.
Most
Am
eric
an
s d
o n
ot
wan
t h
igh
er t
axes.
Bu
t sin
ce t
he F
ed
eral
govern
men
t d
oes n
ot
have e
nou
gh
reven
ues t
o p
ay f
or t
he c
om
mit
-
men
ts i
t h
as m
ad
e,
tax r
even
ues w
ill
have t
o g
o u
p u
nle
ss p
rogram
s
are c
ut.
Th
e m
on
ey f
or g
overn
men
t p
rogram
s w
ill
have t
o c
om
e f
rom
som
ew
here:
hig
her in
com
e ta
x rate
s,
few
er sp
ecia
l exem
pti
on
s,
or
perh
ap
s a
new
tax a
ltogeth
er s
uch
as a
con
su
mp
tion
tax.
“Th
e d
ebt
of t
he
Un
ited
Sta
tes…
was
th
e p
rice
of
lib
erty
.” A
LE
XA
ND
ER
HA
MI
LT
ON
179
0,
Fir
st R
epor
t O
n T
he
Pu
bli
c C
red
it
TH
E D
EB
T I
S T
HE
CU
MU
LA
TIV
E T
OT
AL
OF
AL
L O
F O
UR
PR
EV
IOU
S
def
icit
s an
d s
urp
luses a
nd
oth
er
fed
era
l fi
nan
cia
l tr
an
sacti
on
s.
Sin
ce
the f
ou
nd
ing o
f ou
r cou
ntr
y, w
hen
th
e R
evolu
tion
ary l
ead
ers
need
ed
to b
orr
ow
to fi
gh
t th
e w
ar
again
st
the B
riti
sh
for
ind
ep
en
den
ce,
the
Un
ited
Sta
tes h
as d
ealt
wit
h t
he p
rocess o
f b
orr
ow
ing,
rep
ayin
g,
an
d
record
ing d
eb
t. O
ur
deb
t h
as n
ever,
how
ever,
reach
ed
th
e levels
th
at
are
cu
rren
tly p
roje
cte
d f
or
the n
ear
futu
re, ab
sen
t m
ajo
r p
oli
cy c
han
ges.
Th
e f
ed
era
l d
eb
t—w
hic
h i
s d
isp
layed
in
a “
nati
on
al
deb
t clo
ck”—
is
FIG
UR
E 8
.
SO
UR
CE
S:
3%
206080 40 0
100%
20
%
61%
71%
18%
11%
8%
SH
AR
E O
F
PR
E-T
AX
IN
CO
ME
SH
AR
E O
FF
ED
ER
AL
TA
XE
S
hig
he
st
qu
inti
le
fou
rth
q
uin
tile
thir
d
qu
inti
le
se
co
nd
qu
inti
le
low
est
qu
inti
le
TO
P 1
%T
OP
1%
24
%18
%
6%
3%
com
pri
sed
of
two p
arts
: in
tragovern
men
tal
deb
t—Tre
asu
ry s
ecu
riti
es
held
b
y fe
dera
l tr
ust
fun
ds (e
.g., Socia
l Secu
rity
an
d M
ed
icare
) an
d
oth
er
govern
men
t accou
nts
—an
d d
eb
t h
eld
by t
he p
ub
lic,
wh
ich
are
mark
eta
ble
secu
riti
es i
ssu
ed
by t
he T
reasu
ry a
nd
sold
to b
oth
dom
es-
tic a
nd
fore
ign
in
vesto
rs.
Becau
se A
meri
can
s h
ave l
ow
savin
gs r
ate
s,
the f
ed
era
l govern
men
t h
as b
ecom
e i
ncre
asin
gly
dep
en
den
t on
fore
ign
len
ders
to fi
nan
ce t
he n
ati
on
’s d
efi
cit
s a
nd
deb
t. A
s o
f A
pri
l 20
10,
for-
eig
n i
nvesto
rs h
old
47 p
erc
en
t of
pu
bli
c d
eb
t.
In Feb
ruary 20
10,
Con
gre
ss vote
d to
ra
ise th
e d
eb
t ceil
ing,
or
the
up
per
lim
it o
f ou
r n
ati
on
al
deb
t, t
o $
14.3
tri
llio
n. T
he d
eb
t ceil
ing i
s
now
$2 t
rill
ion
hig
her
than
it
was j
ust
a y
ear
ago. T
he t
ota
l d
eb
t m
ore
than
dou
ble
d i
n t
he p
ast
decad
e f
rom
$5.6
tri
llio
n t
o $
12.9
tri
llio
n a
s
of
Ap
ril
20
10. D
eb
t h
eld
by t
he p
ub
lic h
as a
lso m
ore
th
an
dou
ble
d i
n
the l
ast
decad
e,
risin
g f
rom
ab
ou
t $
3.4
tri
llio
n i
n 2
00
0 t
o a
bou
t $
8.3
tril
lio
n a
s o
f A
pri
l 20
10.
Wit
h d
efi
cit
s p
roje
cte
d t
o r
each
over
$1
tril
lion
th
rou
gh
20
11, an
d t
o
rem
ain
ab
ove $
70
0 b
illi
on
for
the n
ext
ten
years
, th
e n
ati
on
al d
eb
t le
vel
is e
xp
ecte
d t
o g
row
dra
mati
call
y.
Deb
t le
vels
, at
the h
igh
est
they h
ave b
een
sin
ce W
orl
d W
ar
II, cou
ld
lead
to s
ub
sta
nti
al
inte
rest
paym
en
ts i
n t
he f
utu
re,
if t
hey p
ers
ist.
By
20
12, p
roje
cte
d s
pen
din
g o
n in
tere
st
wil
l exceed
sp
en
din
g o
n M
ed
icaid
.
By 20
18,
inte
rest
sp
en
din
g w
ill
exceed
M
ed
icare
sp
en
din
g.
By 20
46,
inte
rest
sp
en
din
g w
ill
exceed
tota
l fe
dera
l re
ven
ues (
see
Fig
ure
9).
Th
e i
mp
licati
on
s o
f th
ese h
igh
deb
t le
vels
, h
ow
ever,
exte
nd
beyon
d
just
hig
her i
nte
rest
paym
en
ts a
nd
low
er l
evels
of
investo
r c
on
fid
en
ce.
Th
e U
nit
ed
Sta
tes m
ay b
e an
u
nli
kely
can
did
ate
fo
r d
efa
ult
ing on
its d
eb
t, b
ut
deb
t at
the l
evel
proje
cte
d i
n c
om
ing d
ecad
es w
ou
ld b
e
un
su
sta
inab
le,
an
d c
ou
ld l
ead
to l
ow
er s
tan
dard
s o
f li
vin
g,
low
er d
o-
mesti
c i
nvestm
en
t, a
nd
hig
her i
nte
rest
an
d i
nfl
ati
on
rate
s o
ver t
ime.
Inte
rest
rate
s a
re c
urren
tly a
t an
his
toric
low
—th
ree-m
on
th r
ate
s a
re
clo
se t
o z
ero, w
hil
e t
hey h
overed
arou
nd
8 p
ercen
t as r
ecen
tly a
s 1
99
0.
Th
e i
nte
rest
cost
on
ou
r d
eb
t w
ou
ld i
ncrease d
ram
ati
call
y i
f rate
s r
ise
in t
he f
utu
re.
Th
e M
aastr
ich
t cri
teri
a,
wh
ich
mu
st
be m
et
by E
uro
pean
Mon
eta
ry
Un
ion
sta
tes l
ookin
g t
o a
dop
t th
e E
uro
as t
heir
cu
rren
cy,
is a
n i
nte
rna-
tion
all
y r
ecogn
ized
sta
nd
ard
for
fiscal
poli
cy.
Th
e c
rite
ria l
imit
s i
nfl
a-
tion
an
d in
tere
st
rate
s b
ased
on
in
tern
ati
on
al avera
ges, an
d c
ap
s d
efi
cit
an
d p
ub
lic d
eb
t le
vels
at
3 p
erc
en
t an
d 6
0 p
erc
en
t of
a c
ou
ntr
y’s
GD
P,
resp
ecti
vely
.
FI
GU
RE
9
.
SO
UR
CE
S:
Cou
ntr
ies
wit
h h
igh
er
deb
t-to
-GD
P l
evels
oft
en
als
o f
ace b
oth
eco-
nom
ic a
nd
poli
tical
cri
ses.
Gre
ece,
a c
ou
ntr
y w
hose
deb
t-to
-GD
P r
ati
o
exceed
ed
110
perc
en
t in
Ap
ril 20
10, is
facin
g c
orr
esp
on
din
gly
low
er
bon
d
rati
ngs,
con
cern
over
poli
tical
cre
dib
ilit
y, a
nd
in
tern
ati
on
al
pre
ssu
re t
o
make s
wif
t an
d d
rast
ic p
oli
cy c
han
ges.
Ire
lan
d a
nd
Sp
ain
, w
hose
defi
cit
s
were
more
a r
esu
lt o
f lo
ss in
tax r
even
ue r
ela
ted
to t
he r
ecess
ion
th
an
to
poor
fisc
al
poli
cie
s, a
re s
eein
g t
he i
mp
licati
on
s in
hig
h u
nem
plo
ym
en
t
rate
s an
d m
ajo
r d
ecre
ase
s in
in
tern
ati
on
al
invest
or
con
fid
en
ce.
TH
E T
ER
M “
FIS
CA
L E
XP
OS
UR
ES
” IS
A M
EA
SU
RE
(IN
PR
ES
EN
T V
AL
UE
)
of fe
dera
l li
abil
itie
s, c
om
mit
men
ts, con
tin
gen
cie
s, a
nd
un
fun
ded
pro
mis
-
es,
wh
ich
, u
nd
er
cu
rren
t la
w, w
ill cost
th
e g
overn
men
t at
a f
utu
re d
ate
.
Refe
rrin
g t
o F
igu
re 1
0, th
e fed
era
l govern
men
t w
as in
a $
61.
9 t
rill
ion
-
plu
s h
ole
as o
f Sep
tem
ber
30
, 20
09 (
an
in
cre
ase o
f $
5.5
tri
llio
n f
rom
th
e
pre
vio
us y
ear)
.
Rig
ht
now
, each
Am
eri
can
’s s
hare
of
the $
61.
9 t
rill
ion
in
fiscal
ex-
posu
res i
s o
ver
$20
0,0
00
. E
very y
ear
in w
hic
h t
here
are
no d
ow
n p
ay-
men
ts o
r re
form
s m
ad
e t
o t
hese lia
bil
itie
s a
nd
pro
mis
es, th
e t
ota
l gro
ws
by $
2 t
o 3
tri
llio
n—
or
$6,5
00
to $
10,0
00
per
pers
on
—on
au
top
ilot.
Som
e e
xp
osu
res a
re e
xp
licit
an
d k
now
n l
iab
ilit
ies t
hat
the f
ed
era
l
govern
men
t is
legall
y o
bli
gate
d t
o f
ulfi
ll. C
om
mit
men
ts a
nd
con
tin
gen
-
cie
s r
ep
resen
t con
tractu
al
req
uir
em
en
ts t
hat
the f
ed
era
l govern
men
t is
exp
ecte
d t
o f
ulfi
ll w
hen
or
if s
pecifi
ed
con
dit
ion
s a
re m
et.
Th
e larg
est
cate
gory o
f exp
osu
res, h
ow
ever,
con
tain
s t
he g
row
ing u
n-
fun
ded
pro
mis
es f
or
Socia
l Secu
rity
an
d M
ed
icare
ben
efi
ts f
or
cu
rren
t
an
d f
utu
re b
en
efi
cia
ries. A
lth
ou
gh
peop
le r
ely
on
th
e p
rom
ise o
f th
ose
ben
efi
ts, th
e C
on
gre
ss a
nd
th
e P
resid
en
t can
—an
d a
t ti
mes d
o—
ch
an
ge
the p
rogra
ms i
n w
ays t
hat
incre
ase o
r d
ecre
ase t
he v
alu
e o
f exp
ecte
d
ben
efi
ts,
an
d t
hu
s a
lter
the s
ize o
f th
e i
mp
licit
exp
osu
re.
For
exam
ple
,
in th
e p
ast,
p
oli
cym
akers
h
ave in
cre
ased
p
ayro
ll ta
x con
trib
uti
on
s,
FI
GU
RE
1
0.
NO
TE
:
SO
UR
CE
S:
incre
ased
th
e r
eti
rem
en
t eli
gib
ilit
y a
ge,
ch
an
ged
cost-
of-
livin
g a
dju
st-
men
ts,
an
d in
cre
ased
b
en
efi
cia
ry p
rem
ium
s ap
pli
cab
le to
su
ch
p
ro-
gra
ms. In
ad
dit
ion
, th
e U
.S. Su
pre
me C
ou
rt
has r
ule
d t
hat
the b
en
efi
ts
un
der
those p
rogra
ms c
an
be c
han
ged
at
an
y t
ime t
hro
ugh
legis
lati
on
.
TH
E F
ED
ER
AL
BU
DG
ET
IS
IN
TE
ND
ED
TO
PR
OV
IDE
A G
UID
EL
INE
TO
an
nu
al
fiscal
poli
cym
akin
g.
It d
oes,
how
ever,
have m
ajo
r w
eakn
esses
wh
en
it
com
es t
o b
oth
un
ders
tan
din
g a
nd
man
agin
g t
he fi
nan
ces o
f th
e
Un
ited
Sta
tes g
overn
men
t.
than
on
th
e lon
g-t
erm
im
pacts
of
fiscal ch
oic
es. D
ecis
ion
makers
do
not
devote
th
e s
am
e l
evel
of
scru
tin
y t
o f
utu
re o
utc
om
es a
s t
hey d
o
to c
urr
en
t costs
. A
s a
resu
lt, th
e lon
ger-
ran
ge im
pact
on
th
e n
ati
on
’s
str
uctu
ral
bu
dget
has b
een
negle
cte
d.
in t
he p
oli
tical p
rocess. A
s a
resu
lt, th
ose in
div
idu
als
th
at
wil
l carr
y
most
of
the f
utu
re b
urd
en
of
cu
rren
t fi
scal
irre
sp
on
sib
ilit
y a
re n
ot
rep
resen
ted
in
th
e d
ecis
ion
-makin
g.
costs
th
at
are
lik
ely
to r
esu
lt f
rom
vari
ou
s a
cti
vit
ies a
nd
tax p
oli
cie
s
of
the f
ed
era
l govern
men
t. S
om
e o
f th
ose c
osts
refl
ect
fed
era
l li
ab
il-
itie
s a
nd
legal
ob
ligati
on
s.
Oth
ers
are
ob
ligati
on
s f
or
ben
efi
ts t
hat
wil
l b
e p
aid
in
th
e f
utu
re, in
clu
din
g S
ocia
l Secu
rity
an
d M
ed
icare
.
sou
nd
bu
dgeta
ry o
bje
cti
ves a
nd
desir
ed
ou
tcom
es.
Sta
tuto
ry t
ools
that
con
trib
ute
d t
o b
ud
get
su
rplu
ses i
n t
he l
ate
1990
s h
ave s
inced
exp
ired
(se
e B
ox 1
).
Un
der
PA
YG
O,
Ca
ps
on
dis
cret
ion
ar
y s
pen
din
gBO
X 1
.
3.Some policymak
ers
may w
an
t to
try to s
olv
e th
e p
roble
m w
ith
on
ly s
pen
d-
ing c
uts
, w
hil
e o
thers
may w
an
t to
keep
sp
en
din
g t
he s
am
e a
nd
on
ly
rais
e t
axes.
Both
ap
pro
ach
es
are
un
reali
stic
an
d t
he r
esp
ecti
ve g
rou
ps
wil
l h
ave t
o m
ake c
on
cess
ion
s if
we a
re g
oin
g t
o s
olv
e t
he p
roble
m. F
ig-
ure
11
dis
pla
ys
a l
ist
of
illu
stra
tive p
oli
cy o
pti
on
s th
at
wou
ld h
elp
low
er
the r
isin
g lon
g-t
erm
debt
levels
. M
an
y o
ther
solu
tion
s are
poss
ible
.
Rig
ht
now
, ou
r p
oli
tical
insti
tuti
on
s a
re g
en
era
lly i
neff
ecti
ve a
t ad
-
dre
ssin
g o
ur
lon
g-t
erm
fiscal
ch
all
en
ges.
Poli
ticia
ns f
ear
the w
rath
of
an
ele
cto
rate
th
at
dis
likes t
ax i
ncre
ases a
nd
sp
en
din
g c
uts
. It
is m
uch
easie
r to
exp
an
d g
overn
men
t p
rogra
ms a
nd
pro
vid
e t
ax c
uts
, re
ap
th
e
FI
GU
RE
1
1.
sh
ort-
term
poli
tical
ben
efi
ts,
an
d t
hen
let
futu
re p
oli
ticia
ns—
an
d c
iti-
zen
s—
deal
wit
h t
he c
on
seq
uen
ces.
Con
gre
ss h
as s
how
n t
hat
it i
s a
ble
to c
on
trol
sp
en
din
g w
hen
it
has
to b
y u
sin
g t
ools
lik
e p
ay-a
s-y
ou
-go a
nd
dis
cre
tion
ary c
ap
s.
Bu
t th
ese
mech
an
ism
s o
nly
pre
ven
t th
e p
rob
lem
fro
m g
ett
ing w
ors
e; th
ey w
ill n
ot
pre
ven
t th
e p
roje
cte
d r
ise in
deb
t th
at
wil
l h
ap
pen
if
ele
cte
d o
fficia
ls d
o
not
ch
an
ge m
ajo
r p
oli
cie
s.
Man
y p
oli
ticia
ns w
ill
agre
e i
n p
rivate
th
at
they n
eed
to d
o s
om
eth
ing a
bou
t escala
tin
g d
efi
cit
s a
nd
deb
t le
vels
, b
ut
beli
eve t
hat
bu
ild
ing a
poli
tical
coali
tion
aro
un
d a
fiscal
resp
on
sib
ilit
y
an
d s
usta
inab
ilit
y p
ackage i
s t
oo d
iffi
cu
lt. M
an
y d
ou
bt
wh
eth
er
norm
al
con
gre
ssio
nal
pro
ced
ure
can
ever
pro
du
ce a
mean
ingfu
l solu
tion
.
Th
e b
iparti
san
fi
scal
com
mis
sio
n th
at
Pre
sid
en
t O
bam
a re
cen
tly
cre
ate
d m
ay h
elp
bre
ak t
he l
og
jam
on
su
sta
inab
le fi
scal
poli
cie
s.
Th
at
execu
tive c
om
mis
sio
n i
s c
harg
ed
wit
h a
ch
ievin
g a
bala
nced
bu
dget
ex-
clu
din
g i
nte
rest
costs
on
th
e d
eb
t in
20
15 a
nd
id
en
tify
ing p
oli
cie
s t
hat
wou
ld i
mp
rove t
he l
on
g-r
un
fiscal
ou
tlook. T
his
goal
sh
ou
ld b
e s
up
ple
-
men
ted
by a
dd
itio
nal
goals
to s
tab
iliz
e t
he d
eb
t-to
-GD
P r
ati
o a
t a r
ea-
son
ab
le l
evel, a
nd
to a
ch
ieve a
sig
nifi
can
t re
du
cti
on
in
th
e t
en
s o
f tr
il-
lion
s i
n u
nfu
nd
ed
pro
mis
es t
hat
the f
ed
era
l govern
men
t alr
ead
y h
as.
Th
e C
om
mis
sio
n w
ill b
e r
eq
uir
ed
to p
rod
uce a
pro
posal th
at
has s
up
-
port
from
at
least
75 p
erc
en
t of
its m
em
bers
, w
hic
h m
ean
s t
hat
both
parti
es w
ill
have t
o s
up
port
it. U
nfo
rtu
nate
ly, b
ecau
se n
eit
her
the C
on
-
gre
ss n
or
the P
resid
en
t is
un
der
an
y o
bli
gati
on
to a
dop
t th
e C
om
mis
-
be a
ch
ieved
th
rou
gh
pro
gra
m r
efo
rms
an
d b
ud
geta
ry c
on
stra
ints
wil
l
ult
imate
ly h
ave t
o c
om
e f
rom
hig
her
taxes.
Th
e k
ey is
to a
ct
soon
er
rath
-
er
than
late
r, b
ecau
se i
f w
e a
llow
th
e d
eb
t to
cre
ep
up
too h
igh
, in
tere
st
cost
s w
ill
make o
ur
fisc
al
ch
all
en
ge m
uch
tou
gh
er
than
it
is n
ow
.
FI
GU
RE
1
2.
SO
UR
CE
S:
sio
n’s
pro
posals
, it
is f
ar
from
certa
in t
hat
the c
om
mis
sio
n w
ill su
cceed
,
esp
ecia
lly if
it
d
oes n
ot
en
gage in
m
ean
ingfu
l cit
izen
ed
ucati
on
an
d
en
gagem
en
t eff
orts
th
at
wil
l h
elp
bu
ild
pu
bli
c u
nd
ers
tan
din
g a
nd
su
p-
port
for
its i
mp
orta
nt
task.
Govern
men
t p
roje
cti
on
s sh
ow
th
at
if cu
rren
t p
oli
cy re
main
s u
n-
ch
an
ged
, d
eb
t h
eld
by t
he p
ub
lic i
s p
roje
cte
d t
o e
xceed
30
0 p
erc
en
t
of
GD
P b
y 20
40
. If
th
at
hap
pen
s,
then
in
tere
st
on
th
e d
eb
t w
ill
be
so e
xp
en
siv
e t
hat
we w
ill
not
have m
uch
hop
e o
f gett
ing d
eb
t d
ow
n
again
. F
urth
erm
ore
, if
we l
ose t
he c
on
fid
en
ce o
f ou
r fo
reig
n i
nvesto
rs
an
d p
ass a
“ti
pp
ing p
oin
t,”
Am
eri
ca a
nd
th
e w
orl
d c
ou
ld f
ace a
glo
bal
dep
ressio
n.
To k
eep
th
e d
eb
t b
elo
w a
man
ageab
le l
evel—
e.g
., 6
0 p
erc
en
t of
GD
P
(as d
iscu
ssed
earl
ier
in t
he d
eb
t secti
on
)—everyth
ing w
ill
have t
o b
e
on
th
e t
ab
le,
bu
t ad
dre
ssin
g t
he g
row
th i
n h
ealt
h c
are
costs
is e
ssen
-
tial. C
BO
esti
mate
s t
hat
deb
t h
eld
by t
he p
ub
lic w
ill
be 6
2 p
erc
en
t of
GD
P w
hen
fiscal
year
20
10 e
nd
s. F
igu
re 1
2 c
om
pare
s a
deb
t le
vel
of
60
perc
en
t of
GD
P t
o c
urr
en
t lo
ng-t
erm
pro
jecti
on
s.
In t
he fi
nal
an
aly
sis
,
wh
ate
ver
sp
en
din
g r
ed
ucti
on
s a
nd
pro
du
cti
vit
y i
mp
rovem
en
ts c
an
not
an
d t
hat
can
did
ate
s fo
r fe
dera
l offi
ce d
isclo
se t
heir
pro
pose
d s
olu
tion
s
gro
win
g k
ey c
hall
en
ges a
nd
deli
veri
ng o
n t
heir
pro
mis
es
pro
gra
ms a
nd
poli
cie
s t
hat
work
an
d c
reate
a b
ett
er
futu
re
-
Assig
n t
o t
he g
overn
men
t on
ly t
he r
esp
on
sib
ilit
ies w
e a
re
wil
lin
g t
o p
ay f
or
in t
axes. P
rogra
ms t
hat
are
sch
ed
ule
d t
o g
row
faste
r th
an
th
e e
con
om
y a
re u
nsu
sta
inab
le
-
Recogn
ize t
hat
there
are
no e
asy a
nsw
ers
by b
uil
din
g a
nd
sh
ari
ng a
ware
ness o
f th
e fi
scal
ch
all
en
ge, th
e n
eed
for
tim
ely
acti
on
, an
d t
he c
ost
of
inacti
on
ch
all
en
ges
an
d s
up
port
civ
ic g
rou
ps
that
are
work
ing t
o a
dd
ress
th
em
-
Wh
at
are
my s
hort-
an
d l
on
g-t
erm
pers
on
al
fin
an
cia
l ob
jecti
ves?
-
Wh
at
majo
r m
ilesto
nes d
o I
need
to p
rep
are
for
(e.g
., e
du
cati
on
, fa
mil
y, r
eti
rem
en
t)?
-
Wh
en
do I
see m
yself
reti
rin
g? H
ave I
con
sid
ere
d t
hat
for
each
year
I d
ela
y m
y r
eti
rem
en
t, I
can
su
bsta
nti
all
y i
ncre
ase
my r
eti
rem
en
t in
com
e f
or
the r
est
of
my l
ife?
save f
or
the f
utu
re, an
d i
nvest
savin
gs w
isely
investi
ng, an
d m
akin
g r
esp
on
sib
le u
se o
f cre
dit
bu
t als
o i
n m
y f
am
ily’s
kn
ow
led
ge a
nd
ed
ucati
on
Fed
era
l G
ov
ern
men
t W
ebsi
tes
ww
w.c
ms.
go
v
ww
w.c
bo
.go
v
ww
w.r
eco
ve
ry.g
ov
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w.f
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era
lre
serv
e.g
ov
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w.g
ao
.go
v
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w.b
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ge
t.h
ou
se.g
ov
wa
ysa
nd
me
an
s.h
ou
se.g
ov
ww
w.j
ct.g
ov
ww
w.m
ed
pa
c.g
ov
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w.w
hit
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ou
se.g
ov/
om
b
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w.a
pp
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tio
ns.
sen
ate
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v
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w.b
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na
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w.fi
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na
te.g
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w.s
sa.g
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w.t
rea
s.g
ov/
offi
ces/
tax
-po
licy
Oth
er O
rg
an
iza
tio
ns
ww
w.a
ei.
org
ww
w.b
roo
kin
gs.
ed
u
ww
w.c
ato
.org
ww
w.a
me
rica
np
rog
ress
.org
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w.c
bp
p.o
rg
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w.c
ep
r.n
et
crr.
bc.
ed
u
ww
w.c
ho
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tosa
ve
.org w
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gw
.org
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w.c
rfb
.org
,
an
d i
ts b
log, U
S B
ud
get
Watc
h:
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etw
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bri
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pa
forfi
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alp
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nin
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rg
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he
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ime
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eri
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ff.o
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ap
aw
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asi
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wa
tch
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ie.c
om
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ne
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w.p
ub
lica
ge
nd
a.o
rg
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w.t
ax
fou
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ati
on
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licy
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ter.
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tin
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Our mission is to increase public awareness
of the nature and urgency of key economic
challenges threatening America’s future
and accelerate action on them. To meet these
challenges successfully, we work to bring
Americans together to find sensible,
sustainable solutions that transcend age, party
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to achieve real results.
