- Government outlays soared from 20.1% of GDP in the last Bush term to 24.4% in 2009-12. Meanwhile, government receipts fell from 17.9% of GDP in the last Bush years to 15.3% in the Obama years.
- Over half the drop in receipts has been due to lower payroll taxes.
- After 2013, the Office of Management and Budget projects interest on publicly held debt will jump
from 8.8% to 14.5% of total receipts.
- OMB also projects that “mandatory” federal spending will rise at a 7% annual rate, from 2011 to 2017— as fast as it did in the past six years.
- The deficit is expected to decline to 3% of GDP over time, but that is based on the assumption that individual and corporate income taxes rise by rates of 10% and 17%, respectively.
|From The Blog of HORAN Capital Advisors|