GOVERNMENT SPENDING - House Budget …

1 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 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 .

2 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 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 = $ 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.

3 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 Family Budget Federal Budget