2. 2 D ISCRETIONARY S PENDING A UTOPILOT S PENDING TOTAL SPENDING FY 2013 = $3.55 TRILLION

3. 3 TOTAL RECEIPTS 2013 (in Billions)

4. FEDERAL SPENDING VS. SEQUESTRATION

5. SEQUESTRATION VS. PRESIDENT’S TAX HIKES

6. SPENDING IS THE PROBLEM

7. WHERE IS OUR MONEY GOING? (G OVERNMENT S PENDING AS A S HARE OF E CONOMY ) S OURCE : CBO

8. 8 PROJECTED DEFICIT PATHS ( IN B ILLIONS OF D OLLARS )

9. H EALTH C ARE C OSTS ARE THE P RIMARY D RIVER OF THE D EBT (G OVERNMENT S PENDING AS A S HARE OF E CONOMY )

11. H OUSE P LAN F OR F ULL R ECOVERY The Path To Prosperity Efficient, Effective and Responsible Government Strengthening the Social Safety Net Fulfilling the Mission of Health and Retirement Security for All Americans Pro-Growth Tax Reform

12. T OTAL G OVERNMENT S PENDING ( AS A S HARE OF E CONOMY )

13. A C HOICE OF T WO F UTURES (D EBT AS A S HARE OF E CONOMY )

14. WHAT IS NEXT?  President’s budget deadline: February 4  Sequester cuts hit: March 1  “Continuing resolution” expires: March 27  Budget deadline for House and Senate: April 15  Debt limit reached: May 19

15. FOUR YEARS LATER Source: House Ways and Means Committee January 2009January 2013

16. OUR NATIONAL DEBT

17. REFERENCE MATERIALS

18. TAX REVENUES DO NOT CORRELATE WELL WITH TAX RATES

19. TAX REVENUES ARE HIGHLY CORRELATED WITH GDP

20. W HO B ENEFITS F ROM T AX L OOPHOLES A VERAGE PER P ERSON B ENEFIT B Y C ATEGORY OF E ARNERS

21. WHO BEARS THE TAX BURDEN? (SHARE OF INCOME TAX BURDEN)

22. W HO O WNS O UR D EBT ? (D EBT H ELD BY P UBLIC, 1970 -2011)

25. BCA = SEQUESTERATRA = FISCAL CLIFF BILL HOW THE FISCAL CLIFF AND SEQUESTER AFFECTS OUR DEBT

26. T OTAL S PENDING IN FY 2010 = $3.5 T RILLION (O UTLAYS IN B ILLIONS OF D OLLARS )