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Compose a 500 words assignment on government deficit spending. Needs to be plagiarism free!
Compose a 500 words assignment on government deficit spending. Needs to be plagiarism free! Government deficit spending affiliation Government deficit spending Over the years, the debt rate in the United States has increased significantly. This debt is generated from the uncontrolled borrowing from the government has increased. In an argument by CBO (2012) the government has spent a lot of borrowed funds to a point that the set aside budget money intended to be borrowed cannot be accounted for. The effects of the large borrowing will be significantly felt in the future. The debt experienced by future generations would be enormous that it would take years to clear the debt as well as create a debt free budget.
For this, the congress has made changes in the way in which government spends to minimize the financial requirement. The move by the congress to limit spending is one way in which it aims the amount borrowed by the government. In an argument by Master (2012) by congress cutting down on government spending has positive results in the quest of reducing the level of borrowing. For instance, the cutting down on spending was proposed on the money spending on the defense system. The funds use to support war and the defense mechanisms can be reduced if the United States minimizes its indulgence in war fare (Lynch, 2011).
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 (2012) 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 (Masters, 2012).
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. For this reason, the proposed expenditure and revenue policies require the contribution by both parties. The parties have agreed on the measure on reducing expenditure on functions such as the defense section of the government (Lynch, 2011). In addition, creating an equal taxation rate for all citizens has been affected by both functions.
References
CBO. (2012). Choices for deficit reduction. Web. November, 2012. Retrieved from http://www.cbo.gov/sites/default/files/cbofiles/attachments/43692-DeficitReduction_print.pdf
Lynch, M. (2011). Statutory Budget Controls in Effect between 1985 and 2002. Congress Research Service, 7(1-15).
Master, J. (2012). U.S Deficits and the National Debt. Web. 2nd March, 2012. Retrieved from http://www.cfr.
