WASHINGTON, April 25, 2012 /PRNewswire-USNewswire/ -- Without swift policy changes, America faces unprecedented government spending, debt and taxation in 2013, according to the newly released graphics from The Heritage Foundation's 2012 Federal Budget in Pictures series.
While tax revenue levels have been low for the past few years as America struggled to recover from the recession, they are set to explode past 20 percent of the economy beginning next year. That's when the 2001 and 2003 tax cuts could expire and new Obamacare taxes will begin.
The tax graphic is part of a series of charts that Heritage annually updates and releases as an informative book, illustrating the nation's government spending, tax rates, entitlement growth and rising debt.
At the same time that Americans face what The Washington Post calls "Taxmageddon," Washington's federal spending continues to rise above unsustainable levels. This year, the federal government will spend about $30,015 per U.S. household. That figure is projected to shoot up to $34,602 in just 10 years.
"We cannot afford high taxes and spending on top of unprecedented deficits and debt," says Emily Goff, Heritage research associate and co-author of the Federal Budget in Pictures.
The Obama administration has failed to propose the necessary cuts to rein in spending and bring down deficits, which have far outpaced previous administrations. While past presidents have overseen deficits that historically averaged about 2 percent of the economy, President Obama has run deficits averaging at 8.3 percent of the gross domestic product.
This has driven up every American's share of the debt to $36,267 in 2012. By 2036, this figure would be nearly the same as medical school tuition at $135,547—only without a degree to show for it.
"The major entitlement programs—Medicare, Medicaid and Social Security, as well as Obamacare—drive so much of our runaway spending and future deficits," says Romina Boccia, Heritage research coordinator and co-author. "Congress won't get a handle on our twin fiscal crises until it begins work on true entitlement and budget reforms."
The online Federal Budget in Pictures lets visitors download, post, and e-mail any of the graphics. It also provides links to relevant Heritage research and tools for bookmarking, embedding and information-sharing through Twitter, Facebook and RSS feeds.
The Heritage Foundation is the nation's most broadly supported public policy research institute, with more than 710,000 donors. Founded in 1973, it develops public policy solutions that advance free enterprise, limited government, individual freedom, traditional values and a strong national defense.
SOURCE The Heritage Foundation