JOBS DEFICIT

BUDGET DEFICIT LEADERSHIP DEFICIT

MANDATORY SPENDING

NET OTHER INTEREST MANDATORY MEDICAID $202 $433 $273

MEDICARE $519

NON-DEFENSE (DISCRETIONARY) $666

SOCIAL SECURITY $701

SOURCE: CONGRESSIONAL BUDGET OFFICE AUGUST 2010 BUDGET & ECONOMIC OUTLOOK

DEFENSE (DISCRETIONARY) $692 DISCRETIONARY SPENDING

6,000

5,000
4,000 3,000 2,000 1,000 0 2005
SOURCE: CBO

2010

2015

2020

800% 700%
600% 500% 400% 300% 200% 100% 0% 1941
SOURCE: OMB/CBO

CURRENT POLICY

WORLD WAR II

2010
HISTORIC TREND

1961

1981

2001

2021

2041

2061

2081

25% PROJECTED TAX REVENUE

20%

15%
MEDICARE

10%
MEDICAID & OTHER HEALTH

5%
SOCIAL SECURITY

0% 1970 1980 1990 2000 2010 2020 2030 2040 2050 2060 2070 2080
SOURCE: CBO

WHAT DRIVES OUR DEBT?

(GOVERNMENT SPENDING AS SHARE OF ECONOMY)
80
ALL OTHER GOVERNMENT ENTITLEMENT SPENDING INTEREST ON DEBT

70
60 50 40 30

REVENUES

20
10 0
SOURCE: OMB /CBO

2011

2020

2040

2060

2080

100 90 80 IN TRILLIONS OF DOLLARS 70 60

99.4

TRILLION
76.4 62.9

TRILLION

50
40 30 20 10

TRILLION

0
SOURCE: GAO

2009

2010

2011

Guiding Principles
No changes to those in or near retirement Fulfill the mission of health and retirement security Lift the crushing burden of debt Spur economic growth and path to prosperity

 2009 House GOP Budget Alternative

Cut $4.8 trillion in spending from Democrats budget; Put budget on path to balance Keep taxes low; spur job creation and growth