Billion Current Dollars 1 Payments for individuals include social security and railroad retirement, Federal employees retirement and insurance, unemployment assistance, veterans benefits, medicare and medicaid, housing payments, and public assistance and related programs. 2 Per OMB "Midsession Budget Review for Fiscal Year 1976," May 30, 1975, p. 20. 3 Slower growth partly due to the projected reduction in unemployment compensation, because of the lower unemployment rate assumed for 1980. 250 200 150 100 50 EXHIBIT 2 Growth in Federal Expenditures on Payments for Individuals (Billion Current Dollars Per Fiscal Year) SOURCE: Actual outlays for years 1955, 1965. 1970 and 1975. Projected outlays for 1980 from OMB Mid-Session Budget 232.5 1980 EXHIBIT 3 Payments for Individuals as a Percent of Total Budget Outlays SOURCE: Actual outlays for years 1955, 1965, 1970 and 1975. Projected outlays for 1980 from OMB Mid-Session Budget Review for Fiscal Year 1976, May 30, 1975 1 National defense function excluding military retired, pay which is included in payments for individuals. 2 State and local spending from own sources, Federal grants to State and local governments are included in Federal spending, not State and local spending. 3 The projections to the year 2000 show what would happen if outlays for nondefense operations and payments for individuals continued to grow at the same average annual rate as from 1955 to 1974. Defense outlays in 1976 dollars which declined from 1955 to 1974 were assumed constant to the year 2000. The computations were made yearly between 1976 and 2000 on this basis, but only the terminal year (2000) is shown on these tables. In projecting payments for individuals, the 1976 amount was decreased by $10,000,000,000 to adjust it to what it would have been with the unemployment rate what it was in 1975 (5 percent). 4 These are implicit rates of increase. The outlay projections on which they are based were not computed directly. They are sums of projections of their components. Source: OMB. EXHIBIT 5 PERSONAL TAX RECEIPTS AND TRANSFER PAYMENTS BY INCOME CATEGORY 1967 AND 1974 1 Income is defined as census family income plus imputations for in-kind income from food stamp bonus and health insurance under medicaid, medicare, and VA programs. 2 A negative number indicates transfer payments exceeded tax receipts. In 1967 families with fewer than 4 persons received an estimated 47 percent of this total. In 1974 families with fewer than 4 persons received an estimated 51 percent of this total. In 1967 families with fewer than 4 persons received an estimated 28 percent of this total. In 1974 families with fewer than 4 persons received an estimated 17 percent of this total. EXHIBIT 6 NUMBER OF FAMILIES PAYING TAXES OR RECEIVING GRANTS BY INCOME CATEGORY IN 1967 AND 1974 1 Income is defined as census family income plus imputations for inkind income from food stamp 2 Represents about 85 percent of all transfer programs. Programs included are: Aid to families with 3 Does not include public housing as well as some other minor income tested programs. Includes: 4 Program too small to report data. • Average size of all families in 1967 was 3.1 persons compared to 2.9 in 1974. Cautionary note; average size will vary by income category or other grouping of data. |