The title of the line-graph chart on this slide is "The Current Squeeze." The chart has two lines. The first line is called Adjusted Receipts - Tax Law Extended, which shows tax receipts, adjusted for extension of the tax cuts, as a percentage of GDP. The second line is called Adjusted Spending - Major Entitlements and Defense, which shows spending, adjusted for growth in entitlements and defense, as a percentage of GDP.
Adjusted receipts drop sharply between 2000 and 2004, from approximately 21 percent to approximately 16 percent, then edge up to just over 16 percent in 2005 and remain steady through 2015. Adjusted spending rises steadily from approximately 13 percent in 2000 to just over 17 percent in 2015. The lines cross in 2013. Before the two lines cross, the difference between the lines represents resources left for other domestic outlays. After the two lines cross, spending surpasses receipts, which shows that there are no resources left for other domestic outlays.
The source of the chart is C. Eugene Steuerle, Adam Carasso, and Elizabeth Bell, The Urban Institute, 2004. Note: Authors' calculations based on data from CBO (September 2004) andTrustees (2004).