Enitlements already consume more than half the entire federal budget and are growing at 6% per year – significantly faster than our entire economy, and more than twice the rate of inflation. If simply left on "auot-pilot" (assuming no new entitlement spending or benefits):
- By 2015 entitlements will consume 62% of our total budget.
- By 2040 – Social Security, Medicare, and Medicaid alone will consume 20% of our economy – equivalent to the cost of the entire Federal Government today.
- By 2040 – Americans will have to pay twice the current rate of taxes – just to maintain the current level of entitlement benefits.
Entitlements Aren’t all that’s at risk…
Without reform, these programs will also impose a crushing burden on other budgetary priorities and the economy. Entitlements will eventually crowd out all other priorities: such as education, veterans’ benefits, science, agriculture, even defense and homeland security. In addition, the massive tax burden needed to sustain the entitlement programs will jeopardize the competitiveness of American workers and small businesses, who are already facing tremendous challenges in the globalizing economy.