RSSComposition of Federal Spending and Taxes for 2007
This chart illustrates how the $162 billion dollar deficit was created during the fiscal year that ended September 30, 2007. Simply put, spending exceeded taxes by $162 billion for the year. The federal government borrowed the additional $162 billion from the public during 2007, which brought the balance of the national debt held by the public to slightly over $5 trillion by the end of the year.
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16 Responses to “Composition of Federal Spending and Taxes for 2007”
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June 25th, 2008 at 8:38 am
One interesting point about this slide is that it shows that spending for Medicare and Medicaid ($561 billion) plus spending for Social Security ($581 billion) equals $1.142 trillion. This entitlement spending already exceed the taxes dedicated for such purposes ($870 billion for Social Security and Medicare taxes) by $272 billion. As the baby boomers retire, this funding gap will become far worse and, as other charts in this presentation show, unsustainable. It is obvious that there is an urgent need to address the funding issues with Medicare and Social Security.