- Posted March 7, 2013 by
This iReport is part of an assignment:
Tax vs Spend 101 : A Brief Look at the Historical Data
Note: All of the values I discuss are in terms of a percentage of GDP which, in terms of the budget, is more accurate to use when comparing data across various years.
According to the CBO, since 1972…
Average revenue is 18% and average federal expenditures are 21%, resulting in an average deficit of 3%. The total debt has climbed from $322B to over $16T, a 5,000% increase.
While the recession has had a significant negative impact on tax receipts since 2008, spending under the current administration has increased significantly. Revenues are down to about 16% while spending has jumped to around 24%...a historically high average deficit of 9%. In 2009 the deficit set a record high by exceeding $1T.
According to data from the Whitehouse, here are numbers for the current fiscal year.
Debt: $16.7T (113% of GDP)
Projected Receipts: 18%
Projected Outlays: 23%
Projected Deficit: 5% ($900B)
Since 1972, spending has outpaced a fairly constant tax revenue stream at a rate of about 3% of GDP each year. While there were variations during that time period, the variations tended to be relatively small and the trend line fairly flat. Since 2008, that deficit has jumped as high as 9% and has averaged about double the historic norm.
Stay tunes for Tax vs Spend 102 : Marginal vs Effective Tax Rates and Their Efect on Revenue