government spending - home - house budget...

GOVERNMENT SPENDING Spending as a Share of the Economy

Source: CBO

17%

18%

19%

20%

21%

22%

23%

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Path to Prosperity Current Path

2  

TOTAL SPENDING Spending as a Share of the Economy

%

5%

10%

15%

20%

25%

30%

35%

1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040

Historical Path to Prosperity Alternative Fiscal Scenario

Source: OMB/CBO

A BALANCED BUDGET Federal Deficit/Surplus in 2024 (in Billions of Dollars)

-500

-450

-400

-350

-300

-250

-200

-150

-100

-50

0

50

President's Budget Path to Prosperity

Surplus $5 Billion

The President’s budget never

balances—ever.

Deficit $434 Billion

Source: CBO/OMB

%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

1940 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040

WORLD WAR II

CURRENT PATH

PATH TO PROSPERITY

4  

A CHOICE OF TWO FUTURES U.S. Debt Held by Public as a Share of the Economy

Source: OMB/CBO

45%

49%

6%

1962 Non-Defense Defense Net Interest

75%

18%

6%

2013

DEFENSE SPENDING IS A DECLINING SHARE OF FEDERAL SPENDING

76%

9%

14%

2024 (Current Policy)

Ten years from now, defense will fall below 10 percent of the federal budget.

Source: OMB/CBO

HIGHER RATES DON’T MEAN HIGHER REVENUE As a Share of the Economy

Source: OMB/Tax Foundation

%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

Top Income Bracket Total Revenue as Percent of GDP Tax Revenue as Percent of GDP

WHO OWNS OUR DEBT? Debt held by Public, 1970-2013

Source: Department of Treasury

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

1941 1951 1961 1971 1981 1991 2001 2011 2021 2031 2041

WORLD WAR II

CURRENT PATH

CRUSHING BURDEN OF DEBT U.S. Debt Held by Public as a Share of the Economy

Source: OMB/CBO

Medicaid & Other Health

Medicare

Social Security

Net Interest

0%

5%

10%

15%

20%

25%

30%

Revenues

WHAT DRIVES OUR DEBT? Government Spending as a Share of the Economy

Source: CBO

Other Mandatory $467

Non-Defense Discretionary

$576

Defense $625

Social Security $808

Medicare $492

Medicaid $265

Interest $221 AUTOPILOT SPENDING

DISCRETIONARY SPENDING

Source: CBO

TOTAL SPENDING IN FY2013 = $3.45 TRILLION

SPENDING IS THE PROBLEM Historical/Projected Spending & Revenue as a Share of the Economy

Source: OMB/CBO

10%

15%

20%

25%

30%

35%

40% Historical & Projected Spending

Historical & Projected Revenue

FAMILY BUDGET VS. FEDERAL BUDGET Average annual growth of median income and government spending under

the President’s budget, 2014-2024

Source: WSJ economic forecasting survey, October 2011/OMB

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

Family Budget Federal Budget