250 likes | 354 Views
Fiscal Future: The Challenges Ahead. presented by Jeffrey S. Thiebert, National Grassroots Director THE CONCORD COALITION www.concordcoalition.org. About The Concord Coalition.
E N D
Fiscal Future: The Challenges Ahead presented byJeffrey S. Thiebert, National Grassroots Director THE CONCORD COALITIONwww.concordcoalition.org
About The Concord Coalition The Concord Coalition is a nationwide, non-partisan, grassroots organization advocating generationally responsible fiscal policy. The Concord Coalition was founded in 1992 by the late former Senator Paul Tsongas (D-Mass.), former Senator Warren B. Rudman (R-N.H.) and former U.S. Secretary of Commerce Peter Peterson. Former Senator Bob Kerrey (D-Ne.) became co-chair of the Concord Coalition in January 2002.
Americans Want to Cut Spending – But Not on the Programs That Cost the Most Source: The Economist/YouGov Poll, April 2010 and Congressional Budget Office, January 2010.
Interest Domestic* Defense Other Entitlements Medicare & Medicaid Social Security Composition of FY 2010 Federal Government Revenues and Outlays(Deficit: $1.29 Trillion) Estate & Gift Taxes ($18 billion) Other Taxes Corporate Taxes Social Insurance Taxes Individual Income Taxes Outlays: $3.45 trillion** Revenue: $2.1 trillion *Includes all appropriated domestic spending such as education, transportation, homeland security, housing assistance and foreign aid. **Numbers may not add due to the preliminary nature of the fiscal year numbers. Source: CBO October 2010 and Department of Treasury 2010.
Federal Spending vs. Revenues as a Percent of GDP (FY 1980-2020)CBO August Baseline Compared to the President’s Budget Actual Projected Percentage of GDP Average outlays: 21.0% Average revenues: 18.3% CBO August 2010 Baseline CBO’s Estimate of the President’s Budget Source: Congressional Budget Office, August 2010..
Current Policy Trends Lead to Large Sustained DeficitsFiscal Years 2011-2020 -$6.2 Trillion Deficit Billions of Dollars -$15.2 Trillion Deficit CBO August 2010 Baseline The Concord Coalition Plausible Baseline assumes that discretionary spending grows at the rate of nominal GDP, that war costs slow gradually, that Medicare physician payment cuts are postponed, and that all expiring tax provisions (including those from the 2009 stimulus package) are extended with AMT relief. Source: Congressional Budget Office, August 2010 and Concord Coalition analysis.
Debt Held by the Public as a Percent of GDP 1940-2040 Actual Projected As a Percentage of GDP World War II 108.6% 2010 63.6% Source: GAO Analysis, 2010 and OMB Historical Tables 2010.
Percent of Debt Held by the Public Owned by Foreigners(1987-2010) Percentage of Ownership of Publicly-Held Debt Source: United States Treasury Department, Treasury Bulletin, September 2010.
Interest Costs Go Through The Roof Billions of Dollars Source: Congressional Budget Office August 2010 and CBO’s Analysis of the President’s Budget, March 2010.
Sources of Growth in the Federal Budget Over the Next 30 Years Individual Income Taxes = 6.5% Current Defense Spending = 4.7% Source: Government Accountability Office and Congressional Budget Office. 2010.
Factors Explaining Future Federal Spending on Medicare, Medicaid, and Social Security Source: Congressional Budget Office, June 2010.
Defense Discretionary Spending as a Percentage of GDP As a Percentage of GDP Source: Congressional Budget Office, August 2010.
Outlays of Select Non-Defense Discretionary Programs (FY 2010 Projected) Education Transportation Housing, Natural Veterans Foreign Aid General Science, Energy & Resources Government Space & Nutrition Asst. Technology *includes ground, air, and water Source: Congressional Budget Office, January 2010.
Non-Defense Discretionary Spending as a Percentage of GDP As a Percentage of GDP Source: Congressional Budget Office, January 2010.
Current fiscal policy is on an unsustainable pathFederal Outlays as a Percentage of GDP Interest All Other Medicaid Average tax revenue Medicare Social Security Source: Government Accountability Office, 2010.
Share of Workforce with Employee Sponsored Pension Coverage has been Around 50 Percent Since 1970s *Includes public-sector employees. Source: EBRI Databook of Employee Benefits, Chapter 10 (Employee Benefit Research Institute, December 2009; and Employee Benefits in Private Industry in the United States (Bureau of Labor Statistics, March 2008).
Lower-Earning Workers are Much Less Likely to Have Pension Coverage *Includes public-sector employees. Source: EBRI Databook of Employee Benefits, Chapter 10 (Employee Benefit Research Institute, December 2009.
Typical Workers Can Only Finance One or Two Years of Retirement Source: 2007 Survey of Consumer Finances Chartbook (Federal Reserve Board, February 2010); Current Population Survey, 2008 Annual Social and Economic Supplement (August 2008, U.S. Census Bureau).
Typical US Family Don’t Have Enough Savings for Retirement Source: 2007 Survey of Consumer Finances Chartbook (Federal Reserve Board, February 2010).
Key Points of AgreementMembers of the Fiscal Wake-Up Tour do not necessarily agree on the ideal levels of spending, taxes and debt, but we do agree on the following key points: • Current fiscal policy is unsustainable • There are no easy solutions, such as cutting waste fraud and abuse or growing our way out of the problem. • Finding solutions will require bipartisan cooperation and a willingness to discuss all options. • Public engagement and understanding is vital in finding solutions. • This is not about numbers. It is a moral issue.