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1 Arthur P. Hall, The Popular Definition of Income and Its Implications for Tax Policy 1 (1997)

handle is hein.taxfoundation/sreexz0001 and id is 1 raw text is: FOUNDATION February 1995 Number 44 An Overview of the President's FY 1996 Budget Mandatory Spending to Consume 71 Percent of Budget by 2000 The Clinton administration has released its fiscal 1996 budget into a political environment in which Congress is seriously considering a constitutional amendment to require a bal- anced budget by the year 2002. The administration's projected level of mandatory spending and the resulting high level of pro- jected annual deficits reveals the challenge that federal lawmakers face in their quest for a balanced budget. Figure 1 reveals that mandatory federal spending will consume about 71 percent of the federal budget by the year 2000. Indeed, President Clinton's Bipartisan Commission on Entitlement and Tax Reform reports, based on current projections, that mandatory spending will consume all tax revenue collected by the Federal government in the year 2012. As Figure 2 illustrates, the budget cat- egory known as mandatory spending is the Figure 1 Mandatory Federal Spending as a Share of Total Federal Spending 1962-2000 80.00 70.00 60.00 250.00 40.00 30.00 62 65 68 71 74 77 80 83 86 89 92 95 98 Source: Tax Foundation calculations based on Office of Management and Budget data. By Arthur P. Hall, Ph.D. Senior Economist Tax Foundation -A