The Fiscal Cliff

Traveling around Tennessee, many folks are asking questions about the fiscal cliff, specifically about federal spending and tax revenue. Please find below some interesting charts and figures that outline our country’s current financial situation.
 

This chart represents the total number of federal revenue, outlays, and deficits for fiscal years 2007-2012. In 2009, President Obama increased the spending as it is related to the recession. Subsequently, the President has continued to run trillion dollar deficits in every year of his Presidency. What is very interesting is that tax revenues have increased by 26% in the last two years as the economy recovers.That is an increase of $233 billion for individual income tax payments; yet, spending has not decreased.
 

Outlay & Deficits (Billions)          
                   2007      2008      2009     2010     2011      2012   
Receipts   $2,568     2,524     2,105     2,163     2,302    2,449
Outlays     $2,729     2,983     3,518     3,456     3,599    3,538
Deficit         -$161      -459     -1,413   -1,293   -1,297   -1,089
% of GDP      -1.2%     -3.2        -10.1      -9.0        -8.7       -7.0
Sources: Department of the Treasury, Office of Management and Budget, Congressional Budget office.

Outlay & Deficits (Billions)

Sources: Department of the Treasury, Office of Management and Budget, Congressional Budget office.

Defense Spending:

There has been a decrease in defense spending with the wind down of the wars in Iraq and Afghanistan.

Entitlements

Entitlements account for $2.48 trillion in spending for one year.