1962 1970 1980 1990 2000 2009
0%
10%
20%
30%
40%
50%
heritage.orgChart 1 • ArticleName
Nearly Half of All AmericansDon’t Pay Income Taxes
Note: Figures for 1977 to 1982 were extrapolated due to unavailable data.
Source: Heritage Foundation calculations based on data from the Internal Revenue Service, “Individual Income Tax Returns,” Publication 1304, 1962–2009, Table 1.4, and various IRS reports.
Percentage of U.S. Population Not Represented on a Taxable Return
23.7%
12%
34.1%
49.5%
1962 1970 1980 1990 2000 2010
0%
10%
20%
30%
40%
50%
60%
70%
80%
heritage.orgChart 2 • ArticleName
More than 70 Percent of Federal Spending Goes to Dependence Programs
Sources: Office of Management and Budget, “Historical Tables: Budget of the United States Government, Fiscal Year 2012,” 2011, Table 1.1, pp. 22 and 23, and Heritage Foundation calculations sourced throughout the Index of Dependence on Government.
Share of Total Federal Spending
2003: 68.3%
70.5%
1990:48.5%
1962:28.3%
2003: 68.3%
70.5%
1990:48.5%
1962:28.3%
1962 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
$0
$10
$20
$30
$40
$50
$60
heritage.orgChart 3 • ArticleName
Housing Assistance Breaks Record Second Year in a Row
Source: Office of Management and Budget, “Historical Tables: Budget of the United States Government, Fiscal Year 2012,” 2011, Table 3.2, p. 57, and Table 12.3, p. 276.
Expenditures in Billions of 2005 Dollars
273% increasefrom 1975 to 1981
49% increasefrom 1990 to 1995
42% increasefrom 2006 to 2010
Year-to-Year ChangeIncrease Decrease
$59.4
$52.3
1962 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
$0
$100
$200
$300
$400
$500
1962 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
$0
$100
$200
$300
heritage.orgChart 4 • ArticleName
Medicare and Medicaid Costs Rapidly Increasing
MEDICARE
MEDICAID
Source: Office of Management and Budget, “Historical Tables: Budget of the United States Government, Fiscal Year 2012,” 2011, Table 3.2, p. 57, and Table 12.3 p. 266.
Expenditures in Billions of 2005 Dollars
Expenditures in Billions of 2005 Dollars
Year-to-Year ChangeIncrease Decrease
Year-to-Year ChangeIncrease Decrease
127% increasefrom 1989 to 1998
138% increasefrom 1999 to 2010
$452
$273
$251
$430
1962 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
$0
$200
$400
$600
$800
$1,000
$1,200
heritage.orgChart 5 • ArticleName
Welfare and Low-Income Health Care Assistance Surges
Source: Office of Management and Budget, “Historical Tables: Budget of the United States Government, Fiscal Year 2012,” 2011, Table 3.2, p. 57, and Table 12.3, pp. 265, 266, 271, and 299.
Expenditures in Billions of 2005 Dollars
Year-to-Year ChangeIncrease Decrease
89% increasefrom 1997 to 2007
41% increase from 2008 to 2010
$1,137$994
87% increasefrom 1990 to
1996
87% increasefrom 1990 to
1996
1962 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010$0
$200
$400
$600
$800
$1,000
$1,200
heritage.orgChart 6 • ArticleName
First of 78 Million Baby Boomers Retiring
Source: Office of Management and Budget, “Historical Tables: Budget of the United States Government, Fiscal Year 2012,” 2011, Table 3.2, p. 57.
Expenditures in Billions of 2005 Dollars
$1,023
$1,053Year-to-Year ChangeIncrease Decrease
–0.5% decrease from 1998to 1999
(only decrease)
–0.5% decrease from 1998to 1999
(only decrease)
1962 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
$0
$10
$20
$30
$40
$50
heritage.orgChart 7 • ArticleName
College Education: Dependence on Government Doubles
Source: Office of Management and Budget, “Historical Tables: Budget of the United States Government, Fiscal Year 2012,” 2011, Table 3.2, p. 57, and Table 12.3, p. 265.
Expenditures in Billions of 2005 Dollars
Average, 1979–2001:$13.7 billion
$18.5
$49.3Year-to-Year ChangeIncrease Decrease
Average, 2002–2010:$26.2 billion
Average, 2002–2010:$26.2 billion
1962 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
$0
$20
$40
$60
$80
$100
heritage.orgChart 8 • ArticleName
The Era of Big Farming
Source: Office of Management and Budget, “Historical Tables: Budget of the United States Government, Fiscal Year 2012,” 2011, Table 3.2, pp. 56 and 57, and Table 12.3, pp. 265 and 270.
Expenditures in Billions of 2005 Dollars
Average, 1978–1987:$49.4 billion
$18
$62
$90.1
$45.5
Year-to-Year ChangeIncrease Decrease
Average, 1999–2010:$51.9 billion
Average, 1988– 1998:$31
billion
Average, 1999–2010:$51.9 billion
Average, 1988– 1998:$31
billion
Rural and Agricultural Expenditures, in Billions of 2005 Dollars
Average Household Income
heritage.orgChart 9 • ArticleName
Farm Subsidies and Farmer Income
Sources: Office of Management and Budget, “Historical Tables: Budget of the United States Government, Fiscal Year 2012,” 2011, Table 3.2, pp. 56 and 57, and Table 12.3, pp. 265 and 270; U.S. Department of Agriculture, Resource Management Survey, at http://www.ers.usda.gov/briefing/wellbeing/Images/Averagefarmincomesource/Averagefarmincomesource_d.html (November 2, 2011); and U.S. Census Bureau.
$0
$25,000
$50,000
$75,000
$100,000
$0
$25
$50
$75
$100
In the early 1990s, U.S. farming income was close to the national average. In the late 1990s—when farming income surged above the national average— the government raised farming subsidies by more than 67 percent.
1988 1990 1995 2000 2005 2010
1988 1990 1995 2000 2005 2010
Average, 1999– 2010:$51.9 billionAverage,
1988– 1998:$31
billion
Farm Operators
All U.S.
$83,000
$65,500
Average, 1999– 2010:$51.9 billionAverage,
1988– 1998:$31
billion
Farm Operators
All U.S.
$83,000
$65,500
1962 1970 1980 1990 2000 2010
0
50
100
150
200
250
300
heritage.orgChart 10 • ArticleName
Dependence on Government Jumps 8.1 Percent in a Single Year
Source: Based on Heritage Foundation calculations sourced throughout the Index of Dependence on Government.
Index Scores
1980: 100(base year)
294294
237
24% increasefrom 2005 to 2010
Shad
ed
perio
ds
deno
te
rece
ssio
ns
Hea
lth a
nd
Wel
fare
Hou
sing
Ret
irem
ent
Educ
atio
n Rur
al a
nd
Agr
icul
tura
l Ser
vice
s
1965
: G
reat
Soc
iety
pro
gram
s: M
edica
re,
Med
icaid
, Hig
her E
duca
tion
Act
, D
epar
tmen
t of H
ousin
g an
d U
rban
D
evel
opm
ent
1970
: Ex
pans
ion
of S
ocia
l Sec
urity
ben
efits
1981
: Fi
rst R
eaga
n bu
dget
and
tax
cuts
1987
: Ex
tens
ion
of S
ocia
l Sec
urity
taxe
s to
st
ate
and
loca
l gov
ernm
ent w
orke
rs19
96:
Wel
fare
refo
rm to
inclu
de w
ork
requ
irem
ent a
nd F
reed
om to
Farm
Act
1998
: Ex
pans
ion
of M
edica
id to
cov
er
low
-inco
me
child
ren
2002
: Ex
pans
ion
of a
gricu
ltura
l sub
sidie
s, N
o C
hild
Lef
t Beh
ind
Act
2003
: Pa
ssag
e of
Med
icare
pre
scrip
tion
drug
ben
efit
2006
: H
urric
anes
Kat
rina
and
Rita
relie
f; Pe
ll G
rant
exp
ansio
n
2008
–201
0:
Rece
ssio
n-re
late
d pr
ogra
ms
Sour
ce: B
ased
on
Her
itage
Fou
ndat
ion
calc
ulat
ions
sou
rced
thr
ough
out
the
Inde
x of
Dep
ende
nce.
herit
age.
org
Cha
rt 1
1 • A
rtic
leN
ame
Gove
rnm
ent D
epen
denc
e In
dex
Valu
es a
nd M
ajor
Pol
icy
Chan
ges
Maj
or P
olic
y C
hang
es
1962
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010
1962
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010
020406080100
120
1962 1970 1980 1990 2000 2010
0
10
20
30
40
50
60
70
1962 1970 1980 1990 2000 2010
0%
5%
10%
15%
20%
25%
heritage.orgChart 12 • ArticleName
1 in 5 Americans Dependent on Government
Source: Heritage Foundation calculations based on data from the U.S. Department of Education, Social Security Administration, U.S. Department of Health and Human Services, Office of Personnel Management, and the U.S. Census Bureau.
Individuals in Dependence Index (not Including Government Employees), in Millions
Percentage of Total U.S. Population Who Receive Government Assistance
1994:60.8
21.7
67.321.8%
11.7%
1994: 23.1%1994: 23.1%
In 2010, individuals receiving income from government programs took in more money ($32,748) than the average American earned in disposable income ($32,446).
1962 1970 1980 1990 2000 2010
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000$32,748
$32,446
heritage.orgChart 13 • ArticleName
More Income, More Dependence
Sources: U.S. Department of Commerce, Bureau of Economic Analysis, National Income and Products Account, Table 2.1, and Heritage Foundation calculations using data from the Office of Management and Budget, U.S. Department of Education, Social Security Administration, and U.S. Department of Health and Human Services.
Income Per Capita
Disposable Personal
Income, All Americans
Disposable Personal
Income, All Americans
Amount, Americans
Who Receive
Government Assistance
Amount, Americans
Who Receive
Government Assistance
1962 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
–2%
0%
+2%
+4%
+6%
+8%
+10%
1962 1970 1980 1990 2000 2010
0
20
40
60
80
100
heritage.orgChart 14 • ArticleName
More than 91 Million Americans Are Dependent on Government
Source: Heritage Foundation calculations based on data from the U.S. Department of Education, Social Security Administration, U.S. Department of Health and Human Services, Office of Personnel Management, and Office of Management and Budget.
Sum of Program Participants and Government Employees, in Millions
Year-to-Year Percentage Change of Total Program Participants and Government Employment
1966: +8.5%
1991: +3.2%
2009: +4.2%
2010: +3.3%
1982: –1.8%
33.6 million
91.2 million91.2 million
–10%
–5%
0%
+5%
+10%
+15%
1963 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
heritage.orgChart 15 • ArticleName
Federal Employment Growth Highest Since 1968
Sources: U.S. Department of Labor, Bureau of Labor Statistics, Current Establishment Survey, “Employees on Nonfarm Payrolls by Industry Subsectors and Selected Detail,” Table B-1, by Haver Analytics; and U.S. Department of Defense “Active Duty Military Data,” by Haver Analytics. Federal data prior to 2002 is from Office of Management and Budget, “Historical Tables: Budget of the U.S. Government, Fiscal Year 2009,” 2008, Table 17.5.
Year-to-Year Percentage Change in Federal and State Employment
+12.9%
–1.2%
+3.5%
1985: +3.3%1968: +3.5%
–1.0%
State employment increased every year from 1984 to 2008(average annual change: +1.7%)
Federal employment declined every year from 1990 to 1999(average annual change: –2.4%)
State Federal
Index of Dependence on Government, 1962–2010
Sources: Heritage Foundation calculations sourced throughout the Index of Dependence on Government.
Table 1 • ArticleName heritage.org
Year HousingHealth and
Welfare Retirement Education
Rural and Agricultural
ServicesIndex Value
Annual Percentage Change in Index
Value
1962 1 6 5 2 5 191963 1 6 5 2 6 21 11.721964 1 7 5 2 7 22 2.691965 2 6 6 2 6 22 –0.551966 2 7 6 4 4 23 5.991967 2 8 7 7 5 28 22.181968 2 9 8 9 6 34 21.581969 2 10 9 7 7 36 4.891970 3 11 9 8 7 39 7.661971 4 14 11 7 7 43 12.141972 6 17 11 7 8 49 13.601973 9 16 13 7 8 52 4.721974 9 16 14 5 5 49 –5.091975 9 21 15 7 5 57 17.151976 14 24 16 8 6 69 20.721977 20 24 18 9 9 78 13.421978 22 22 18 10 13 86 9.901979 26 22 19 12 12 91 5.041980* 30 25 20 15 10 100 10.451981 34 26 22 18 10 109 9.271982 34 25 23 14 10 106 –3.311983 36 27 24 13 12 112 6.171984 38 24 25 13 8 108 –3.551985 38 25 26 14 13 115 6.231986 38 26 27 14 14 118 3.011987 36 26 27 12 11 113 –4.351988 38 27 28 13 8 114 0.241989 38 28 29 16 7 118 4.141990 39 31 30 16 7 123 3.811991 40 37 31 17 7 132 7.341992 42 45 33 16 7 143 8.211993 47 47 34 20 9 157 10.311994 51 49 36 11 8 154 –1.851995 58 50 38 19 6 170 10.171996 56 50 39 16 6 167 –1.911997 56 49 41 15 6 168 0.701998 57 50 41 15 6 171 1.601999 55 53 41 13 10 172 1.082000 56 55 42 12 13 179 3.762001 57 59 44 12 11 183 2.242002 62 68 46 20 10 206 12.602003 64 73 48 26 12 223 8.432004 64 75 49 28 8 224 0.392005 63 75 51 34 15 237 5.892006 62 73 52 52 21 261 9.802007 70 74 56 25 12 237 –9.282008 67 81 57 23 10 239 1.122009 77 99 63 22 12 272 13.842010 87 112 65 20 10 294 8.11
* Base year