The Federal Budget: Overall Trends

• Under President Obama’s budget, Washington is projected to spend $3,618 billion, raise $2,118 billion, and run a $1,500 billion deficit in 2010.
• Tax revenues strongly correlate with economic growth. The recession is chiefly responsible for collapsing revenues.
• Spending has increased 19 percent faster than inflation since 2008.
• The projected $1,500 billion budget deficit represents a post–World War II record 10.3 percent of GDP. More than 41 cents of every dollar Washington spends in 2010 will be borrowed.

• From 2000 to 2010, real federal spending will have increased from $21,875 per household to $30,543 per household.
• In 2010, the federal government will spend $30,543 per household, collect taxes of $17,879 per household, and run a budget deficit of $12,664 per household.
• Under President Obama’s budget, deficits from 2010 through 2020 would total $82,219 per household.
• Surging Social Security, Medicare, and net interest costs are set to crowd out spending on other programs.

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