A new report by the Heritage FoundationÃ‚Â illustrates the problems the U.S. economy will experience if federal spending continues to expand.Ã‚Â Since 1962, federal spending has increased by almost $2 trillion when adjusted for inflation. While tax revenues have more than tripled during the same period, the blistering rate of government spending has easily outpaced income. If the soaring deficitÃ‚Â continues on its current trajectory, it will account for 19 percent of GDP by 2050.Ã‚Â Ã‚Â
Solutions? First, the government desperately needs to reform entitlement programs, which are set to consume 18 percent of GDP by 2040. Next, the tax cuts should alsoÃ‚Â be made permanent.Ã‚Â ThisÃ‚Â would prevent the tax burden from increasing by 35 percent over the next 40 years. Finally, cut the pork. Heritage reports that earmark spendingÃ‚Â has increased nearly 2000%Ã‚Â since 1991.