Focus on Revenues Invest in Technology / Infrastructure / Education Drive Sustainable Economic Increase / Improve Employment Growth = Improve Competitiveness Consider Review Tax Rates Changing Tax Reduce Subsidies / Tax Expenditures*/ Policies Broaden Tax Base (@)) www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 395 Simple Tax Math* — Big Across-the-Board Tax Rate Increases Would Be Needed to Potentially Generate Meaningful Revenue Improvements Each one percentage point across-the-board tax rate increase would generate an incremental $127 billion revenue for USA Inc. in F2010E’...excluding any related negative impact on spending / GDP growth, which is difficult to do... : ..-Which Would Reduce Across-the-Board Hypothetical Revenue Increase for 7 ul 4 Tax Rate Increase USA Inc. in F2010E ($ billions) Eeriiaied Lessesh . F2010E by 1 Percentage Point $127 8% 2 Percentage ‘ $254 16% Points (pps) 3 pps $381 24% 4 pps $508 33% 5 pps $635 41% 10 pps $1,270 82% individual and corporate income, as well as payroll) would have to be for USA inc. fo financial break-even. These calculations are merely mechanical illustrations and are not meant to portray realistic solutions. 1) Incremental dollar amount calculated as 1% of projected total personal & corporate income, which historically has been at ~87% of GDP. Source: F2010E revenue & deficit per White House OMB, GDP per CBO. (@)E) www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 396 HOUSE_OVERSIGHT_021039