How Should the U.S. Government Spend Tax Dollars During Economic Hardship?

Only available on StudyMode
  • Download(s) : 280
  • Published : May 1, 2012
Open Document
Text Preview
How Should the U.S. Government Spend Tax Dollars during Economic Hardship?

In a plunging economy the world is weathering I’m inclined to stress the importance of how taxpayers’ dollars are spent. I believe that taxpayer’s funds should be used to better everyone’s situation and used where there is the most need. Due to the recession that the United States government has been plagued by due to unaccounted revenue, therefore, resulting in a negative lash back. Therefore, the government is forced to make better choices as it relates to ensuring that services are covered now and down the line. In order for this recession to turn around and receive some positive feedback the focus needs to shift to where the tax dollars are being spend and is it the best use of the funds.

The federal government is in charge of funding a number of services through the federal budget each year. The fiscal year operates from October 1 through September 30. A couple of the services include social security, medicare benefits, national defense and net interest to name a few. Tax cuts for the wealthiest Americans must be allowed to expire as planned at the end of next year – returning tax rates for the top 2% of Americans to their levels during the 1990s when we enjoyed both record budget surpluses and robust economic growth. (Tsongas)

The five biggest chunks of spending for 2011 for the U.S. were Welfare at 11%, Defense at 15%, Education at 15%, Pensions at 16% and Healthcare at 18%(Chantrill).

Fig1. A pie chart showing the total spending of the United States for 2011. (Chantrill) The federal government is also in charge of funding income security programs (unemployment, retirement and disability programs, food stamps as well as subsided housing). As well as programs for healthcare assistance for the poor through Medicaid, training for healthcare professionals and medical research activities. The government is responsible for education, training and social services. They...
tracking img