So to compensate for spending more money, we are raising taxes. 
Unfortunately it's not as simple as just spending more... the crappy economy means fewer people working (and fewer decent paying jobs), so there's also less money coming in. It all adds up to a downward spiral that has become a tough nut to crack. The economy has to improve before the employment picture can improve... before the taxes coming in can cover the tax expenditures going out.
Hell, if it were an easy fix, we'd have kids doing it... and they'd be done by now.
