The Heritage Plan Keeps Spending Low and Ends Deficits Without Raising Taxes

Everyone wants to know more about the budget and here is some key information with a chart from the Heritage Foundation and a video from the Cato Institute.

Bold, transformational reforms are needed to solve America’s spending crisis. The Heritage Plan achieves this through spending, entitlement, and tax reforms. It reduces the size of government, encourages personal fiscal responsibility, and fosters economic growth. It balances the federal budget by 2021 and keeps revenue at 18.5 percent of the economy.

REVENUE AND SPENDING AS A PERCENTAGE OF GDP

Source: Current projections: Congressional Budget Office (Alternative Fiscal Scenario). Heritage Plan: Calculations by the Center for Data Analysis based on data provided by the Peter G. Peterson Foundation. For more information, go to savingthedream.org.

In Depth

• Policy Papers for Researchers

  • WEBSITE ON MAY 25, 2011Saving the American Dream: The Heritage Plan to Fix the Debt, Cut Spending, and Restore Prosperity
  • SPECIAL REPORT ON MAY 10, 2011Saving the American Dream: The Heritage Plan to Fix the Debt, Cut Spending, and Restore Prosperity

• Technical Notes

  The charts in this book are based primarily on data available as of March 2011 from the Office of Management and Budget (OMB) and the Congressional Budget Office (CBO). The charts using OMB data display the historical growth of the federal government to 2010 while the charts using CBO data display both historical and projected growth from as early as 1940 to 2084. Projections based on OMB data are taken from the White House Fiscal Year 2012 budget. The charts provide data on an annual basis except… Read More

• Authors

  Emily GoffResearch Assistant
  Thomas A. Roe Institute for Economic Policy StudiesKathryn NixPolicy Analyst
  Center for Health Policy StudiesJohn FlemingSenior Data Graphics Editor