March 19, 2014 The President s Budget in Pictures By Jasmine Tucker Chart assistance by Daniel Gautreau

Transcription

1 nationalpriorities.org (413) March 19, 2014 The President s Budget in Pictures By Jasmine Tucker Chart assistance by Daniel Gautreau President Obama recently released his 2015 budget proposal. And budgets are about priorities: What we re going to spend money on, and how we re going to raise the money that we re spending. These pictures tell the story of the priorities in the president s budget. Discretionary Spending: This is how President Obama proposes allocating $1.16 trillion in discretionary spending in fiscal year Discretionary spending is the part of the federal budget that Congress determines annually during the federal budget process, and it accounts for 29 percent of total spending in the president's proposed 2015 budget. It does not include earned-benefit programs like Social Security and Medicare. More. 1 Page

2 Mandatory and Discretionary Spending and Interest on Federal Debt: This is how discretionary spending, above, fits into the overall federal budget. As you can see, discretionary spending is less than a third of all federal spending. Sixty-five percent of spending, or $2.6 trillion, falls under the mandatory spending category. Mandatory spending refers to spending for earned-benefit programs like Medicare and Social Security. The remaining 6 percent of the federal budget, or $252 billion, will go towards interest on the federal debt. More. Projected Mandatory and Discretionary Spending and Interest on Federal Debt (Fiscal Year 2015) Discretionary Spending 29% Interest on Federal Debt 6% Mandatory Spending 65% 2 Page

3 Mandatory Spending: This chart shows how President Obama plans to spend $2.6 trillion in mandatory spending in fiscal year Mandatory spending includes programs like Social Security and Medicare, which are often called earned-benefit programs. Lawmakers do not choose the exact amount of money spent on these programs, because it depends on how many people qualify for benefits. More. President's Proposed Mandatory Spending (Fiscal Year 2015) Medicare & Health 39% Social Security, Unemployment & Labor 50% Food & Agriculture 4% Transportation Veterans' Benefits 4% Note: While there is some mandatory spending that occurs in categories beyond the five that are shown in this chart, they are so small that together they account for less than 1 percent of the total and have been omitted. 3 Page

4 Total Spending: This chart shows how President Obama proposes allocating all $3.97 trillion in federal spending in fiscal year This includes every kind of federal spending, from funding for discretionary programs like job training and environmental protection to mandatory programs like Social Security and Medicare as well as interest payments on the federal debt. More. President's Proposed Total Spending (Fiscal Year 2015) International Affairs 1% Government <1% Medicare & Health 27% Social Security, Unemployment & Labor 3 Transportation Food & Agriculture Energy & Environment 1% Veterans' Benefits 4% Interest on Debt 6% Education 2% Housing & Community Military 16% Science 1% 4 Page

5 Military and Non-Military Discretionary Spending: This chart shows how funding for military and non-military discretionary spending has changed over time. Military spending accounts for 55 percent of the president s 2015 discretionary budget proposal, while non-military spending accounts for 45 percent. $1,000 $900 $800 $700 $600 $500 Military and Non-Military Discretionary Spending (in billions of 2015 dollars) Military 2009 Recovery Act Est. $640 bn $400 $300 $200 $100 Non- Military Est. $519 bn in 2015 $ Page

6 Federal Spending and Revenue as a Share of GDP: Now we re bringing tax revenue into the picture. This chart shows federal spending and tax revenue as a share of the overall U.S. economy all the way back to In 2015, President Obama proposes federal spending levels totaling 21 percent of the U.S. economy and tax revenue equal to 18 percent. More. 45% 40% Federal Spending and Revenue as a Share of the U.S. Economy ( ) 35% 30% 25% Spending est. 21% 20% 15% 10% 5% Revenue est. 18% 0% Page

7 Individual and Corporate Income Taxes as Percent of Total Federal Revenue: This chart shows how tax revenue from individuals and corporations has changed over time. Individual income taxes will account for 46 percent of total tax revenue, while corporations will contribute 13.5 percent. Other federal revenue will come from payroll taxes, as well as customs and excise taxes. More. 60% 50% Individual and Corporate Income Taxes as Percent of Total Federal Revenue ( ) Individual Est. 46% in % 30% 20% Est. 13.5% 10% Corporate 0% Page

8 Total Tax Revenue: President Obama proposes collecting $3.34 trillion in total tax revenue in fiscal year 2015, with individual income taxes and payroll taxes which fund Social Security and Medicare as the largest revenue sources. Tax revenue will cover 84 percent of total spending. The rest 16 percent will come from borrowing. More. Projected Tax Revenue Misc. 5% (Fiscal Year 2015) Excise Taxes Customs Duties 1% Corporate Income Taxes 1 Individual Income Taxes 46% Payroll Taxes 32% 8 Page

9 Annual Budget Deficit or Surplus as a Share of the Economy: This chart shows the size of the federal budget deficit (or surplus) as a share of the overall U.S. economy since In President Obama s 2015 budget, the deficit amounts to 3.1 percent of the economy. As you can see, that s roughly on par with annual deficits since World War II. More. 10% Annual Budget Deficit or Surplus % 0% % percent of GDP -10% -15% projected 3.1% -20% -25% -30% -35% For additional analysis of the President s fiscal 2015 budget, see NPP s President Obama Proposes 2015 Budget. 9 Page