1 / 14

The Budget and Entitlements: Time to Take Action

The Budget and Entitlements: Time to Take Action. David John The Heritage Foundation. Federal spending will more than double, driven by Medicare, Medicaid and Social Secuirty. The “Big Three” Entitlements Will Grow Dramatically As Nation Ages.

bruno-munoz
Download Presentation

The Budget and Entitlements: Time to Take Action

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Budget and Entitlements: Time to Take Action David John The Heritage Foundation

  2. Federal spending will more than double, driven by Medicare, Medicaid and Social Secuirty

  3. The “Big Three” Entitlements Will Grow Dramatically As Nation Ages

  4. Absent action under current law deficits not a problem soon – but then skyrocket to unprecedented levels

  5. Entitlements will crowd out everything else and collide with historical long-term level of taxes

  6. Even eliminating defense will not solve the problem

  7. Bush 2008 Medicare proposal has significant savings—trimming 2014 long-term costs

  8. 2008 House Budget: No Entitlement Savings, but huge tax increases

  9. But under current law taxes will rise sharply thanks to pre-Bush laws, despite Bush tax changes Projected Federal Tax Revenue for Three Tax Policy Scenarios as a Percentage of GDP

  10. Raising revenue to balance the budget would lead to European level taxes

  11. But European-level taxes = European-level growth

  12. Slow European-style growth = Lower incomes in US

  13. Slow European-style growth = Unemployment

  14. Conclusion: Take Action on Retirement Entitlements • Amend the Medicare drug bill • Raise the retirement age • Target Medicare and Social Security to those with most need • Transform entitlements into 30-year budgeted programs, balanced against other needs • Measure impact of policy changes on long-term obligations

More Related