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American Dream for This Generation and the Next.” — Senator Jim Demint (R-S.C.)

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What leaders say about Heritage’s plan for: AMERIC A N DRE A M “Getting our country’s fiscal house in order is no easy task. Thankfully, our friends at The Heritage Foundation have done the hard work of thinking through and creating public policies that get government under control and save the American dream for this generation and the next.” — Senator Jim DeMint (R-S.C.) “The analysis of our fiscal problems is compelling, and the proposed solution is bold and imaginative.” — Ambassador John Bolton “The Heritage Foundation’s plan to save the American dream would create economic certainty for businesses by putting our nation on a more stable economic course and giving businesses the freedom to expand.” — Andrew F. Puzder, CEO of CKE Restaurants Inc. (Hardee’s and Carl’s Jr.) “… a plan that truly reforms… This plan is the cure for our ‘disease.’” — Cal Thomas, Syndicated Columnist “Comprehensive tax reform is an essential element of restoring fiscal sanity and spurring economic growth in the country. The Heritage Foundation’s proposal moves the country’s tax code in the right direction toward a more low-rate, flat tax.” — Arthur B. Laffer, Ph.D., the Father of Supply-Side Economics “America does not have to be a country in decline. Do we have choices to make? Yes. And I encourage anyone who is serious about making the right choices to read The Heritage Foundation’s plan to fix the debt, cut spending, and restore prosperity.” — Steve Forbes, Editor-in-Chief, Forbes magazine 214 Massachusetts Avenue N.E. n Washington, D.C. 20002 n (202) 546-4400 n heritage.org AMERIC A N DRE A M THE HERITAGE FOUNDATION 2011 ANNUAL REPORT Our Mission To formulate and promote conservative public policies based on the principles of free enterprise, limited government, individual freedom, traditional American values and a strong national defense. Board of Trustees Honorary Chairman and Thomas A. Saunders III, Chairman Trustee Emeritus David R. Brown, M.D. Richard M. Scaife, Vice Chairman J. Frederic Rench, Secretary Honorary Trustees Kathryn Davis Meg Allen The Hon. Frank Shakespeare Douglas F. Allison Patron of The Heritage Foundation Larry P. Arnn, Ph.D. The Right Honourable The Baroness Thatcher, The Hon. Belden Bell LG, PC, OM, FRS Midge Decter Senior Management Edwin J. Feulner, Ph.D. Edwin J. Feulner, Ph.D., President Steve Forbes Phillip N. Truluck, Executive Vice President Robert J. Herbold David Addington, Vice President Todd W. Herrick Stuart M. Butler, Ph.D., Distinguished Fellow Jerry Hume Becky Norton Dunlop, Vice President Kay Coles James John Fogarty, Vice President Michael G. Franc, Vice President The Hon. J. William Middendorf II Michael M. Gonzalez, Vice President Abby Moffat Kim R. Holmes, Ph.D., Vice President Nersi Nazari, Ph.D. Edwin Meese III, Reagan Distinguished Fellow Robert Pennington Ted E. Schelenski, Vice President William E. Simon, Jr. Matthew Spalding, Ph.D., Vice President Brian Tracy Michael Spiller, Vice President Phillip N. Truluck John Von Kannon, Vice President and Senior Counselor Barb Van Andel-Gaby Genevieve Wood, Vice President Marion G. Wells Robert E. Russell, Jr., Counselor As a nonprofit 501(c)3 organization, we rely on the financial contributions of the general public: individuals, foundations and corporations. We accept no government funds and perform no contract work. We welcome your support. The Heritage Foundation n 214 Massachusetts Avenue N.E. n Washington, D.C. 20002 n (202) 546-4400 n heritage.org AMERIC A N DRE A M Message from the Chairman and the President Saving the American Dream America can still be the nation it was meant to be, a land where freedom, opportunity, prosperity and civil society flourish. Photo: iStock Photo iStock Photo: merica 2011… Saving the American Dream—a plan to fix the debt, cut Washington kept on spending money at a spending and restore prosperity. A breakneck pace, and the national debt ballooned This plan eliminates today’s federal tax code, replacing accordingly. Federal regulators saddled a still struggling it with a new, flat tax. It sharply downsizes government, economy with tens of billions of dollars in new compliance leaves patients—rather than bureaucrats—in control of costs, sometimes exercising powers not authorized by health care decisions and fully funds our national defense. Congress or the Constitution. It balances the nation’s budget within a decade—and keeps Facing the prospect of pending tax hikes, higher energy it balanced. And it starts paying down the national debt. costs and expensive health mandates, employers shelved expansion plans and banked trillions in cash that might have fueled an economic recovery. Millions of unemployed were left frustrated and increasingly desperate. Geer Chas Photo: It was an alarming year. As always, Heritage was there—wading into every significant policy debate, from repealing Obamacare to providing for a responsible national defense. But these challenging times demanded even more. And so we framed a higher-level debate—one that will determine the path America will pursue in the future and the relationship between our government and “We, the people.” Heritage President Edwin Feulner Saving the American Dream welcomes the DAR Heritage mapped out a clear vision for America’s future: Constitution Hall We want a nation where hard work is rewarded, not audience to the Nov. punished; where our children and grandchildren are free 22 GOP presidential of crushing national debt; where a social safety net protects candidates debate on national security, co- the least among us. sponsored with CNN In 2011 we developed a policy package that can make and the American our vision a reality. We call our comprehensive proposal Enterprise Institute. 2011 ANNUAL REPORT THE HERItaGE FOUNDatION 1 AMERIC A N DRE A M Amid friends and family, Heritage Vice Chairman and longtime trustee Richard M. Scaife receives the Clare Boothe Luce Award—Heritage’s highest honor—from President Edwin Feulner (right), May 19 in Pittsburgh. Photography Merriman Justin Photo: Though essentially an economic reform plan, Saving producers. Along the way, we were even awarded one of the American Dream serves a high moral purpose. Absent John Stossel’s “Emmys,” when his television audience reform, future generations will be impoverished by voted Saving the American Dream the best plan for crushing public debt and punitive tax rates. We who have restoring fiscal sanity. lived the American Dream must assure it will be preserved On Capitol Hill, our sister organization—Heritage for those who follow us. Action for America—explained the details of reform and advised staffers drafting language that will introduce Heritage in Action elements of the package—and even the entire plan—as The months spent in formulating the plan were only legislation. Some lawmakers couldn’t wait. Rep. the beginning. Heritage energetically marketed its Jim Jordan (R-Ohio) and Sen. Jim DeMint (R-S.C.) provisions to lawmakers and public opinion leaders. introduced bills that would overhaul the nation’s We traveled the nation, meeting with editorial boards, welfare programs in the plan’s image. syndicated columnists, radio and TV broadcasters and Heritage events in Washington and across the coun- 2 THE HERItaGE FOUNDatION 2011 ANNUAL REPORT AMERIC A N DRE A M “Presidents will come and go, but there will always be a Heritage Foundation.” —Dick Cheney Photo: David Bohrer David Photo: Photo: Michelle McMinn Photography, Inc. Photography, McMinn Michelle Photo: Heritage Chairman Thomas Saunders (left) and President Edwin Feulner Former Vice President Dick Cheney, wearing his Clare Boothe (right) congratulate Roger Ailes, Chairman of Fox News, at the Annual Luce Award medallion, acknowledges the applause of more than Leadership Conference and Board Meeting in Palm Beach, Fla. Ailes 1,000 Heritage donors at the Oct. 13 President’s Club banquet in received the Clare Boothe Luce Award at that gathering April 9 . Washington. try began reframing the national debate over spending, Preparing the Battlefield debt, taxes and health care. By year’s end, entitlement 2012 will be “a time for choosing”—politically as well as reform was looking less and less like a deadly “third in policy debates. As the campaign season got underway rail” of politics. As Congress prepared to break for in 2011, Heritage elevated the public discussion—and Christmas recess, Rep. Paul Ryan (R-Wis.) and Sen. Ron the media coverage—above the usual “horse race” Wyden (D-Ore.) announced that they would start the speculation. Working in partnership with national media New Year with a proposed reform for Medicare premi- outlets, we put together a series of panel discussions prior um support similar to recommendations in Saving the to the GOP presidential debates in Iowa, Nevada, New American Dream. Hampshire and Florida. The topic: What issues are most important to conservatives, and what do they hope to learn from these debates? To throw more light on the appallingly neglected issue of national security, we partnered with the American Enterprise Institute (AEI) and CNN to host the Nov. 22 GOP presidential candidates debate at DAR Constitution Hall here in Wash- ington. The debate focused exclusively on de- fense and foreign policy questions, all posed by The Heritage Foundation Board of Trustees (from left): Midge Decter; Robert J. Herbold; Meg Allen; Robert Pennington; Brian Tracy; Richard M. Scaife, Vice Chairman; David R. Brown, Trustee Emeritus; Abby Moffat; Nersi Nazari; Douglas F. Allison; Thomas A. Saunders III, Chairman; Edwin J. Feulner; Jerry Hume; Phillip N. Truluck; J. Frederic Rench, Secretary; Barb Van Andel-Gaby; Larry P. Arnn; J. William Middendorf II; Kay Coles James; Belden Bell; Todd W. Herrick; Marion G. Wells; Steve Forbes. (Not pictured: Photo: Frasierphoto.com William E. Simon, Jr.) 2011 ANNUAL REPORT THE HERItaGE FOUNDatION 3 AMERIC A N DRE A M Edwin Meese, Heritage’s Ronald Reagan Distinguished Fellow, accepts the Family Research Council’s Vision and Leadership Award Oct.
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