This paper seeks to describe the changes the congress has made in which government spends to minimize the financial requirement, overall forming the efforts to reduce the budget deficit, including various proposes of budget policies.
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Another way of reducing budget deficit is by increasing the number of people under taxation. In the current taxation system, couples earning more than $ 200, 000 per month are exempted from a certain level of taxation. Creating an equal taxation rate in all American citizens may significantly increase the rate at which the government contains revenue. An increase revenue collection will increase the GDP thus minimizing the debts incurred through borrowing. In an argument by Masters collecting enough tax from the citizens may reduce unsure the budget value is not exceeded. Additionally, the author points out that this may also increase government earning significantly even creating a surplus in the proposed budget. The congress also proposed creation of budget policies that may prevent the government from over spending from the budget proposed amount. Over the years, the government has surpassed on expenditure amount as specified in the national budget. For this reason, the amount of debt has increased. However, the proposed budget policies may only be possible if the budget is made flexible and large enough to cater for emergencies and all the requirements over the annual calendar. The white house and the congress disagree on the proposed changes considering the fact that the white house may be affected from the proposed expenditure cuts. However, the white house understands the need to reduce government expenditure. The proposed expenditure and revenue policies require the contribution by both parties.
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The main objective of producing a thriving economy is to put more money and power back into the hands of the American people. The factors discussed weigh heavily on government, and what is duly necessary to make our economy thrive.
Government spending includes the salaries of government officials, allocations for development and social work projects, and expenses for a myriad other projects and activities necessary for governance. It is these myriad other projects, items, and activities of the government which often draw much query and criticism from the citizenry, interest groups, and government officials themselves.
Even though the same report pointed out that the budget deficit would reduce markedly from $1.1 trillion in 2012 to around $200 billion in 2022, representing 58 percent of the GDP, it painted a grim picture of the economy (Kogan, 2012). Notwithstanding, the present economic pressures would make it hard to reduce the deficit unless stern and sound policies and regulations are put in place.
Therefore in addressing the growing national deficit, the Republican Party advocates for government spending habits to be curtailed, and also to amend tax legislation with a view to creating jobs and increasing salaries, reform Medicare and national security, and for the reformation of welfare programs (GOP.gov.com).
‘The public debt, which is sometimes called the federal or the national debt, is the total amount the federal government owes its creditors.’ (Arnold, 2008) The reduction strategy for budget deficit involves decreasing the public expenditure or increasing taxes or a combination of both.
Therefore, in order to develop the human resource to its full potential, government and other agencies need to provide all the necessary facilities to its citizens. These facilities range from providing basic amenities such as food, clothing and shelter, to infrastructural facilities such as road, transportation, communication etc, and most importantly providing them with a livelihood through various job opportunities.
Then the focus is shifted towards the factors affecting the US economy. The next segment deals with the steps taken by the US administration. Special focus has been provided on the role of President, Congress, Secretary of the State, and Treasury Secretary
All the participants and respondents who had a positive contribution in this study are much appreciated for their ready response and honesty during the interviews and questionnaires. Much appreciation goes to positive critics for the corrections and
In most cases, this is regulated through borrowing mostly from foreign governments. From an economist point of view, massive government spending stimulates economic growth. However, it leads to increased interest rates in the country. Therefore, the federal government must
3 Pages(750 words)Research Paper
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