Composition of Spending as a Share of GDP

Composition of Spending as a Share of GDP Assuming Discretionary Spending Grows with GDP after 2005 and All Expiring Tax Provisions are Extended

    Revenue

    Social Security

    Medicare & Medicaid

    Net Interest

    All other spending

    Percent of GDP

    Notes: Although expiring tax provisions are extended, revenue as a share of GDP increases through 2015 due to (1) real bracket creep, (2) more taxpayers becoming subject to the AMT, and (3) increased revenue from tax-deferred retirement accounts. After 2015, revenue as a share of GDP is held constant.
    Source: GAO’s March 2005 analysis.

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