The federal budget is known as the infamous monetary tank from which money is distributed to various programs. Why does the federal budget plan cause such uproar of approval or disapproval when it is proposed by the President every February? The money utilized every fiscal year, which runs from October 1st of each year until the end of September of the following year, belongs to the people. The money is raised through income taxes, excise taxes (taxes on goods) and social insurance payroll taxes. Presently, the public is worried about how they will receive a fair share of money appropriations in such a slow economy. The federal deficit has returned, which means that the government’s spending exceeds its raised revenues. The federal budget is an exercise in making choices, and these choices will inevitably make a dramatic impact on individuals living in the U.S.
The present federal budget can be characterized by one word: deficit spending. It has been a way of life for the federal government since World War II. The last times that federal budget expenses were brought into balance with revenues were in 2000, 1998, 1969, and 1960. Prior to 1940, the federal budget was balanced, except in years of war and economic recession.
There are many theories to the causes of persistent federal budget deficits during the last forty years. Many experts believe the cause of the current deficit originates in policy mistakes of the 1980s, such as the reduction in taxes and increase in defense spending. Others believe that the American public is demanding more in government benefits than it is willing to pay for in taxes. However, the complex budget...
... middle of paper ...
... are more connected to their constituents. Conservatives argue that even the federal government should be held accountable for spending. In particular, government programs must be held to strict standards and accountability whether the balance is balanced or not.
Cogan, John F. “Federal Budget.” The Concise Encyclopedia of Economics. 05 Oct. 2003
Crapo, Mike. “Federal Budget.” Mike Crapo: United States Senator: Fast Facts. 06 Oct. 2003
“Overview: The Issue at a Glance.” Public Agenda. 05 Oct.03
“The Perspectives in Detail.” Public Agenda. 05 Oct.2003
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- The Sequester: When and Why In March of 2013 action was taken in order to pressure policymakers in to a budget compromise and reduce spending deficits in the United States. Across the board spending cuts, known as sequestration, is meant only to catalyze compromise and not to act as a solution itself. The sequester is set to stay enacted until budget goals have been met, continuously cutting funding to federal agencies with each passing fiscal year. Federal Budget Deficits: the Role of Mandatory and Discretionary Spending It is known that over the last decade Federal budget deficits have been increasing.... [tags: budget compromise, reducing spending deficits]
1022 words (2.9 pages)
- ... Further cause risk of disequilibrium within the circular flow of income and disrupting economic growth. The Possible Impact of the 2014/15 Federal Budget on The Australian Economy Gareth Hutchens states in the Sydney Morning Herald that economist are predicting he levy will have a negative impact on consumer sentiment, and retail spending. This will decreases expenditure within the Australian economy and potentially increase unemployment. A disincentive of Australian workers to work harder as that will increase their income and have a rise on taxable income.... [tags: government spending, cuts, deficit]
1319 words (3.8 pages)
- In the context of ongoing discussions about the federal budget and national debt, policymakers, experts, and the media have called attention to the nation’s growing aging population and the implications for Medicare and the federal budget. At the same time, geriatricians and other providers who care for older patients are giving greater attention to the question of how best to meet the needs of an aging population. Between 2010 and 2050, the United States population ages 65 and older will nearly double, the population ages 80 and older will nearly triple, and the number of nonagenarians and centenarians—people in their 90s and 100s—will quadruple.... [tags: Health care, Medicine, Population]
717 words (2 pages)
- The federal budget is known as the notorious economic tank from which money is distributed to various programs. The money used every fiscal year, which begins October 1st and ends September 30th the next year, belongs to the people. The government raises this money through taxes and they spend it on national defense, Medicare, and social security. The federal budget is an exercise in making choices, and those options will certainly affect individuals living in the U.S. These choices cause debt to pile up on the government, who is struggling to make it disappear.... [tags: deficit, Social Security, debt, national defense]
1134 words (3.2 pages)
- Prior to 1970 the process of how bills became laws in the United States Congress almost always followed one specific textbook path. This path was set up by the Constitution of the United States and the United States Congress continuously followed this process set by our founding fathers from the founding of the United States in 1776 until the start of 1970’s. In the 1970’s due to several different factors Congress began to stray from this textbook processes of creating laws and members of congress began to use several different techniques to block bills they saw as undesirable and to also push bills through that they supported.... [tags: United States Congress, Constitution, Government]
1414 words (4 pages)
- Since the early 1970’s, Americans have had trouble controlling a huge money issue. The United States government has engaged in deficit spending. This occurs when spending exceeds the amount of income taken in (“Budget”). American politics have been trying to come up with ideas that the government can implement to fix our current deficit issue. Some strategies that the government may use are spending less, collecting more taxes, and balancing trade (“Atkins”). The federal deficit has become a big issue and Americans must try everything to reduce the debt.... [tags: government, spending, trade]
597 words (1.7 pages)
- The Federal Budget The federal budget is known as the infamous monetary tank from which money is distributed to various programs. Why does the federal budget plan cause such uproar of approval or disapproval when it is proposed by the President every February. The money utilized every fiscal year, which runs from October 1st of each year until the end of September of the following year, belongs to the people. The money is raised through income taxes, excise taxes (taxes on goods) and social insurance payroll taxes.... [tags: United States Government Taxes Essays]
2617 words (7.5 pages)
- What is the federal budget. The federal budget is the yearly plan for how the US government will spend its money. After analyzing the federal budget, it was evident that the money was dispersed into three different clusters; the Big Five, the Middle Five, and the Little Guys. Although at first glance, the money may seem to be being evenly dispersed throughout the three, when taking a deeper look, there is clearly a fine line between what the government needs and what the government wants. The real question is; is the United States distributing its money correctly.... [tags: Federal government of the United States]
1079 words (3.1 pages)
- The purpose for Laura Meckler to write “The Deficit Fight: Federal Land Up for Budget Grabs” is bring attention to the government selling properties. Laura Meckler also wrote the article for the reason that she want to inform the public on the sale of these properties and how it could help the federal budget. The article “The Deficit Fight: Federal Land Up for Budget Grabs” by Laura Meckler is about the government selling “under-utilized buildings” (Meckler, 2011). She discusses how the sale of the properties would help the federal budget as these properties take “$1.66 billion annually to operate” (Meckler, 2011).... [tags: deficit fight, federal reserve, laura meckler]
1339 words (3.8 pages)
- Federal Budget Must be Reduced The annual multibillion-dollar federal budget threatens the future of the United States and must be reduced.To cut the size of the deficit, federal revenues must be increased, and federal outlays must be reduced, or a combination of the two may be used.Under the 1990 budget agreement, Congress cut defense spending and benefits to veterans, farmers, and Medicare and Medicaid patients. In addition, the agreement increased taxes for the wealthiest Americans and phased out some of their tax exemptions.... [tags: Argumentative Persuasive Economics Papers]
402 words (1.1 pages)