National Debt

The Concern of National Debt The National Debt is large, and should be a major concern to the economy. But a even bigger concern is how our Government plans to balance the budget and pay off the Federal Deficit. I am not in favor of passing the National Debt on to future generations, nor am I in favor of passing the Republican's Budget Plan either. The Republican's wantto sharply cut spending for Medicare and Medicaid health benefits for elderly and poor Americans in order to balance the budget by 2002 - while also providing $240 billion in tax cuts. I am in favor of balancing the budget but through many different routes.

Educating and providing awareness on the issue of national debt will help Americans understand and motivate them to help the government in finding a solution to this problem. The government needs to create a balance between expenditures and incomes before the deficits continue on growing. This country has so much to offer but at the same time it does not have the right tools to have a stable economy. The health reform ensuring a cut in excessive spending will not only provide health care to the uninsured children and adults but also help in eliminating the possibility of making America the largest debtor. To achieve this goal, the need of creating better public understanding of budget predicaments is vital.

In 2013, the tax is 12.4 percent and the cap is $113,700, for a maximum tax of about $14,000. More than two dozen countries have moved to retirement systems based on personal accounts. Personal accounts have long been discussed as a superior alternative to the current pay-as-you-go Social Security system. Personal accounts would also encourage greater work effort and thus boost economic growth. Tax increases are not the answer to solve America 's problem of overpromised elderly entitlement programs.

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.

Whether a Cut in Corp Tax Rate be Beneficial Doesn’t everyone want to keep what he/she has earned? It has always been somewhat tradition for Americans to work hard for their money, only to see some of it squandered away come tax time. Wouldn’t a tax cut, for some, be like a divine, heavenly grace? As the year 2001 unfolds and George W. Bush begins his presidency, income tax rates have, in fact, become a concern. President Bush is pushing for an income tax bill that will reduce the tax brackets from 15%, 28%, 31%, 36%, and 39.6% to a new bracket in 2006 of 10%, 15%, 25%, and 33%.

The Solution: I do not believe that raising taxes and yet keeping the same level of spending is the answer to our debt problem. I believe that we must cut all unnecessary , and unaffordable government spending. I would let the Bush tax cut expire, except for the AMT patches and Estate tax which would remain at 2009 levels. This would be the only rise in taxes that I would allow. One of the major areas of spending is Social security with over 22% of the

Government spending is a controversial topic. Even though the government has a set budget each year that Congress and the President of the United States collaborate on, the United States continues to fall deeper in debt. According to U.S. National Debt, the U.S debt has been larger than our total annual gross domestic product since 2012. In other words, our debt is larger than the value of all the goods and services produced in the country within a twelve month period. “It is said that the U.S is currently $19.2 trillion dollars in debt (U.S. National Debt).” As long as Congress and the President continue to run yearly budget deficits, the U.S debt will continue to rise.

The money that was once used for defense should be put toward lowering the budget deficit, which grows at the rate of $10,000 per second and stood as $5,020,705,156,014 at eight o'clock p.m. on November 13, 1995. This is according to the National Debt Clock ([Debt Clock], //www.fusebox.com/debtclock/). Because Americans are not willing to sacrifice social programs, the only alternative is to raise taxes. Americans may not like it, but they need to pay for the government services they want and need. However, this increase in taxes should be kept in perspective, since a tax increase will reduce personal income and business profits.

A plan to cut the military budget has been made and will most likely be put into effect soon. A debt in the United States has been increasing for years so the government thinks the best way to get it to come down some is to make cuts and use the money from the cuts to get rid of the debt. So the military is the first place they look to and the military is the one being squeezed for its money. Although we spend more money on the military then the next ten countries combined does not mean they can just take that money. Congress and the rest of the government is taking money away from the soldiers and putting a heavier burden on their backs.

Fixing the trust fund by raising taxes or cutting benefits would be fairly simple, but both approaches would only make Social Security an even worse deal than it is now. Approximately 75 percent of American workers pay more in Social Security taxes than they do in income taxes. Based on the Social Security Administration's own assumptions, payroll tax rates would have to increase from 12.4 to 19.5 percent for promised benefits to be paid. Although such tax increases might be sufficient to pay promised future benefits, the economy would suffer severe consequences. Raising Social Security taxes enough to keep the government's entitlements promises to future retirees would require doubling or tripling these taxes.