Focus on Revenues —

Focus on Revenues — Drive Sustainable Economic Growth + Change Tax Policies Focus on Revenues Invest in Technology / Infrastructure / Education Drive Sustainable Economic Increase / Improve Employment SL Improve Competitiveness Consider Review Tax Rates Changing MEE Reduce Subsidies / Tax Expenditures*/ eee Broaden Tax Base Note: *Tax subsidies / expenditures are losses to the U.S. Treasury from granting certain deductions, exemptions, or credits (such i as those on mortgage interest payments and employer-sponsored health insurance payments) to specific categories of taxpayers. www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 355 GDP Growth = Biggest Driver of Federal Revenue Growth...& 85% Correlation 1940 — 2009 Historical Correlation Between USA Real GDP Y/Y 2010E — 2019E & Real Federal Receipts Y/Y = 85% If Real Real Federal 60% | © Real GDP Y/Y vs. Real Federal Receipts Y/Y 7 GDP Revenue ; ; YY is Could Grow... — -Linear Trendline (y=2.77x-0.0438, R42=0.73) 4 ” ee a 7 5% 7% = 7 4 5 = 40% - Z 7 a 3 2 2 7 ; 2 0 7 7 3 r 7 . 1 -2 ac Y 7 0 -4 @ Z 20% - 7 -1 -7 te eo 4 J 4 we P ¥ 2 9 a © 7 -3 -11 w e e ¥ e -4, -13 38% ja 5% © one 5% 40% 15% 20% 25% e Os € Current Consensus a 7 / GDP Forecasts 7 Real GDP Y/Y (%) 7 ® -20% — bs Data source: White House Office of Management & Budget (1940 — 2009). (@E) www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 356 HOUSE_OVERSIGHT_021019