This chart demonstrates that additional revenue has to be part of any deficit reduction package. It shows that the last five times the budget was in surplus (in 1969, 1998, 1999, 2000 and 2001), revenue was near 20 percent of GDP. Revenue is now at 15.8 percent of GDP, near its lowest level in 60 years. And under the House Republican budget plan, revenue would reach only 18.7 percent of GDP by 2022, a clearly inadequate level. Even with spending cuts and entitlement changes, given the retirement of the baby boom generation and rising health costs, it is clear we are also going to need more revenue.”
