To balance the budget in 10 years (2012 to 2021) without raising revenues (taxes) we will need to cut outlays (spending) by 15.14% over the eight year period.
- CBO projects total revenues (taxes) to be 39,084 billion (39.084 trillion)
- CBO projects total outlays (spending) to be 46,055 billion (46.055 trillion)
- CBO projects the total deficit to be 6,971 billion (6.971 trillion)
If you subtract the total projected debt from the the projected total outlays, this will equal the projects total revenues, and we will be in balance: 46,055 billion - 6,971 billion = 39,084 billion
The 15.14% is annualized over the 10 years, starting in 2012. Every year we do not cut outlays by at least 15.14%, we increase the amount the percentage of outlays that need to be cut in the following years.
Actual, | 2012- | |||||||||||||
2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2021 | ||
GDP | 14,513 | 15,034 | 15,693 | 16,400 | 17,258 | 18,195 | 19,141 | 20,033 | 20,935 | 21,856 | 22,817 | 23,810 | 196,138 | |
Total Revenues | 2,162 | 2,228 | 2,555 | 3,090 | 3,442 | 3,651 | 3,832 | 4,075 | 4,275 | 4,489 | 4,712 | 4,963 | 39,084 | |
Total Outlays | 3,456 | 3,708 | 3,655 | 3,794 | 3,975 | 4,202 | 4,491 | 4,691 | 4,885 | 5,185 | 5,451 | 5,726 | 46,055 | |
_____ | _____ | _____ | ____ | ____ | ____ | ____ | ____ | ____ | ____ | ____ | ____ | ____ | ||
Total Deficit | -1,294 | -1,480 | -1,100 | -704 | -533 | -551 | -659 | -617 | -610 | -696 | -739 | -763 | -6,971 |
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