Debt Level: Entitlement Spending Increased 11x (1965 to 2010),
While Real GDP Grew 3x
USA Real Federal Expenses, Entitlement Spending, Real GDP % Change, 1965 — 2010
ABET G mm me 2 mee ce = ce es = em a = a 9 SS 9 SS Re Fu = % Entitlement Expenses Total Expenses ty mes i ee ee ee Ee ee ooo ee ee oe SG ee aes ee mega 1O00% Entitlement Programs +10.6x — =Real GDP 2 800% @ 5 Total — E Ps 600% xpenses = @ +3.3x = Oo se 400% Real GDP 200% +2.7x 0% T “+ ae T T T T TT T T T T T T T T T T T T T T T T T T T T T TT T T T T T T TT T T 1 1965 1969 1973 1977 1981 1985 1989 1993 1997 2001 2005 2009 Note: Data adjusted for inflation. Source: White House Office of Management and Budget. i USA Inc. | Income Statement Drilldown 149
Debt Level: Why It Has Risen
Answer Part 2: Revenue (Esp. Corporate Taxes) Fell Below GDP Growth
USA Real Federal Revenue vs. Real GDP % Change, 1965 — 2010
B00% Individual Income Taxes 500% -- CorporateIncome Taxes «8 i Social Insurance Taxes 400% ———— Other Taxes & Fees fe SSC meen: REARS) NV = dat me he Bt nt is tc ns pgs teem as ti ne ts tN 3 Total Revenue o = — -Real GDP E 300% -- — re a Do POUR me mee ee eo ce ee a ce oe = oO 4 NETS me mm a eo gg i «a aR nm = mw me mo tw ee ae 9 tw mt ell De 0% 1 AO0% 1965 1969 1973 1977 1981 1985 1989 1993 1997 2001 2005 2009 p Note: All data adjusted for inflation. Source: White House Office of Management and Budget, Bureau of Economic Analysis. a USA Inc. | Income Statement Drilldown 150
HOUSE_OVERSIGHT_020916