America Recovery & Reinvestment Act (ARRA):
Recipient of 34% of Net Government (Taxpayer) Funding
In ARRA (the economic stimulus program created in February, 2009), USA Inc. aims to create jobs and promote investment and consumer spending by cutting taxes, expanding unemployment benefits, and increasing spending in education, healthcare, infrastructure, and energy.
These measures are projected to increase federal spending by $500+ billion while reducing federal tax receipts by $275 billion over 10 years ($177 billion of which occurred in F2009 and F2010).
KP Source: White House Office of Management & Budget. (@)E) www.kpcb.com USA Inc. | Income Statement Drilldown 201
ARRA*: Negative Effect on Discretionary Budgets Should Peak in F2010,
But Spending Commitments through F2019E Total $417 Billion
ARRA* Discretionary Items’ Net Effect on Federal Budgets, F2009 — F2019E
F2009 F2011E F2013E F2015E F2017E F2019E 0
20 s - Gee 8k 40 ll ee 60 --
80 --- Wy mTaxCredits = ---------
= Other
ARRA Discretionary Items' Net Effect on Federal Budget ($B)
Note: *ARRA is American Recovery and Reinvestment Act of 2009. US federal fiscal year ends in September. Net effects on KP budgets are limited to discretionary spending items in ARRA. Source: Congressional Budget Office. (@E) www.kpcb.com USA Inc. | Income Statement Drilldown 202
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