Defense

Saving Our Future Requires

Tough Choices TodayAmericans for Tax Reform - Washington, D.C.

February 24, 2010David M. Walker

President and CEOThe Peter G. Peterson Foundation

andFormer Comptroller General of the United States

Potential Fiscal Outcomes Under Alternative Simulation

Source: Data from the Government Accountability Office, Fall 2009 Alternative Simulation. Compiled by PGPF.

Delay Leads to Deeper Spending Cuts To Close the Fiscal Gap

Source: Congressional Budget Office, Long-Term Budget Outlook, June 2009. Compiled by PGPF.

Delay Leads to Bigger Tax IncreasesTo Close the Fiscal Gap

Source: Congressional Budget Office, Long-Term Budget Outlook, June 2009. Calculated by PGPF.

U.S. Debt Held by Public

Great Depression

WWI

Note: Projected gross federal debt is higher than public debt. For example, at the end of 2010 projected public debt is roughly 60 percent of GDP compared to projected gross federal debt of roughly 90 percent of GDP. Sources: Data from Office of Management and Budget, Government Accountability Office. Compiled by PGPF.