If I Were in Charge of the US Budget

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The United States Government currently possesses more than seventeen trillion dollars of debt. Billions of dollars are spent each year on paying off interest payments, not the debt itself. Many spending cuts and tax increases must be made in order to stabilize the debt so that our country does not default on its loans. Before beginning the budget simulation, I set out to define my policy goals. Because in the United States, the top one percent earner’s income totaled 21% of the entire country’s pre-tax income (Piketty), I decided that America’s top earners would have to suffer the lion’s share of tax increases. I attribute this decision to the fact that many lower and middle class workers struggle to make a living, while upper class earners with much more disposable income do not have much higher tax rates. Corporations, many of which utilize tax credits and loopholes to pay very little in tax, are also looked at, as tax increases for corporations do not directly translate into lower wages for workers. I also kept an eye on the future, funding programs that would help future generations prosper, as the long term consequences of decisions have the greatest impact. I expected to be able to cut quite a bit from the budget, but feared that I would fund too many social programs and therefore not save enough money. The most significant choice I made regarding the U.S. budget was which of the Bush-era tax cuts to renew. Due to my liberal nature, I chose the tax cuts for incomes under $70,000. This is because the majority of America would be unaffected by the tax increases, while those who are can better afford the extra costs. Although I tarried between renewing the tax cuts for all incomes below $250,000 and the policy I chose, I decid... ... middle of paper ... ...evenue while being beneficial to the environment. The millionaire tax and the Buffett rule would be imposed in order to redistribute wealth to the lower classes. These people can afford and increase in tax, and it would have a minimal impact in the future. Tax deductions for charitable giving along with those for state and local taxes would be curtailed in order to minimize loopholes in the tax code. Although it does cost the middle and lower classes more, most people would be unaffected as they may not be over the cap for these deductions. In conclusion, I was able to raise more revenue and spend less money than I had predicted. I was surprised that I managed to cut the debt down to 60% of the G.D.P., and would summarize this simulator as a success. I learned much about what issues had the largest effect on the budget, and what problems we may face in the future.
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