President Obama’s new national defense strategy is a budget-driven exercise masquerading as a strategic plan, writes Heritage’s Kim Holmes, former Assistant Secretary of State, in The Washington Times. In trotting out the new strategy, President Obama said the “tide of war is receding.” Accordingly, U.S. forces will “no longer be sized to conduct large-scale, prolonged stability operations” (read: Iraq). But is the tide of war receding on the world stage? And how does he know that the U.S. will not need to engage in another “stability operation”? The Army shed … More

Dark clouds hover over the nation’s finances and threaten a perfect storm of massive debt and crushing taxation unless Congress starts acting—soon. Washington must demonstrate that it is serious about reining in ever-rising spending and reducing annual deficits. Passing commonsense reforms to our major entitlement programs (Medicare, Medicaid, and Social Security), the main drivers of future spending and annual deficits, is crucial. As the population ages and health care costs rise, spending on entitlements is projected to more than double by 2050, as this Heritage Budget Chart Book chart shows. … More

Earlier this week in New Hampshire, Republican presidential candidates touted the benefits of a Medicare premium support system — the approach to entitlement reform embraced by House Budget Chairman Paul Ryan (R-WI) and The Heritage Foundation. Ryan’s recent partnership with Sen. Ron Wyden (D-OR) helped thrust the idea of premium support back into the national spotlight. Their bipartisan framework represented a breakthrough on Capitol Hill after liberals spent much of the year making false charges about Ryan’s plan. Given the misleading information about premium support, let’s first take a moment … More

America’s total debt now tops $15.2 trillion—the size of the entire economy. While this is a real concern, the greater problem is the growth of spending and debt in the future. Spending on entitlements is the real driver of future debt. In this clip from the documentary film “I Want Your Money,” Heritage expert Alison Fraser reveals why the national debt is a catastrophic crisis, stating: “We’re right on the cusp of 77 million baby boomers retiring into these entitlement programs, and that is absolutely unsustainable.” When Moody’s threatened to … More

Congress owes America better start for 2012, and not to repeat the way it ended 2011. Even if the Senate is hopelessly dysfunctional, the House could do better.  The final House session of 2011 was a prime example of how to lose public confidence.  The body was gaveled into session on short notice Friday morning, December 23rd, and a mere ten members approved legislation for the entire 435-member House.  The others had left for the holidays, so instead of a roll call vote on a controversial two-month lowering of the … More

Just how high is America’s tax burden? How bad is the entitlement crisis? Sure, the national debt is big, but just how big is it really? Numbers help tell the story, but as the saying goes, a picture is worth a thousand words. This year, people turned to Heritage to get the answers in the 2011 Budget Chartbook. Listed below are the top ten charts from Heritage’s Budget Chartbook as determined by pageviews. Defense Spending Has Declined While Entitlement Spending Has Increased Federal Revenues Have More Than Tripled Since 1965 Tax … More

Ready for a new year and another bout with the Internal Revenue Service, deductions, exemptions, pens and pencils, calculators, receipts, 1040s, W-2s, accountants, Quicken, TurboTax, and more? If you’re like most Americans, that laundry list of income tax jargon, paraphernalia, professionals and their fees is enough to set your head spinning — and even if it isn’t, the thought of paying Uncle Sam your annual dues will certainly do the trick. America’s tax code needs reform, plain and simple. The current tax system discourages saving, investment, and entrepreneurship. It’s a drag on … More

In case you’re not keeping track, it has been nearly 1,000 days since the United States Senate passed a budget. Meanwhile, America’s fiscal nightmare keeps growing, and those on the left—including Members of the Senate—keep advocating for even more spending despite America’s $15 trillion national debt. That’s an important record to keep in mind as the Senate votes today on two versions of the Balanced Budget Amendment (BBA). A BBA is constructive, but it’s not the final answer to America’s fiscal woes despite the tools it offers—in large part because … More

House Cloakroom: December 12 – December 16 Analysis: This week the House will take up two large year end packages.  The first will be the extension of the payroll tax cut, unemployment insurance, TANF and the “doc fix.”  The cost of the bill is offset through a federal pay freeze, means testing of Medicare, flood insurance reform and increases in fees for Fannie Mae and Freddie Mac.  The bill also includes a provision to speed approval of the Keystone XL pipeline and stop the EPA’s Boiler MACT regulations. The House … More

President Obama and Republicans in Congress continue to wage war over an extension of the payroll tax cut. But missing from the debate is any discussion of comprehensive tax reform that would eliminate payroll taxes altogether. Social Security and Medicare payroll taxes are the second-largest source of federal revenue, surpassed only by personal income taxes. This week’s chart from Heritage’s 2011 Budget Chart Book depicts federal revenue by source. That chart would look quite different if Heritage’s tax-reform plan were enacted into law. That plan, part of the Saving the … More