Budget Deficit Reduction Paper
Running head: Budget 1
Budget Deficit Reduction
Melissa Dick
Budget Deficit Reduction History has a way of repeating itself and the budget deficit and attempts to reduce it are no exception. The budget deficit is an annual amount that the federal government sets forth based on the amount of tax revenue it receives. When the amount spent goes over the amount received, you have a deficit. The United States government and the economy has gone in cycles when the budget deficit was not existent and there was a surplus and then to where there was an extreme deficit. In this paper we will discuss many scenarios over the years where Congress has taken actions to reduce the deficit and whether it was effective or not. We will …show more content…
That is where President Clinton came in. His administration created a deficit reduction program using tax increases and spending cuts that was made to lessen the deficit by $500 billion over five years. In 1990, the Budget Reinforcement Act of 1990 was used to enforce the Omnibus Budget Reconciliation Act of 1990 and also amend the federal government’s budget control process. This helped to achieve the first surplus for the United States since 1969 and it almost double in 1999 and in 2000 (Amacher & Pate, …show more content…
This is where the defense budget gets drastically reduced and is about half of the budget cuts. Republicans believe that other things should be cut more than military whereas the democrats feel that they could offset some of the budget cuts with new revenue by evaluating and eliminating loopholes. The hard part is that because there are limits on how much can be cut from government programs like Social Security and Medicare, the non defense programs will see lesser cuts. The Whitehouse that loans to small businesses would be reduced, there would be less food inspections, it will cause hundreds of thousand mentally ill people without their medication, IRS agents would not be able to help everyone with their tax questions and would not be able to audit. Lastly, over a 1000 federal agents would not be able to go after criminals and protect our borders. The other areas that will be affected are head start programs and National Park Services (Puzzanghera & Simon,
Budget Deficit Reduction
Melissa Dick
Budget Deficit Reduction History has a way of repeating itself and the budget deficit and attempts to reduce it are no exception. The budget deficit is an annual amount that the federal government sets forth based on the amount of tax revenue it receives. When the amount spent goes over the amount received, you have a deficit. The United States government and the economy has gone in cycles when the budget deficit was not existent and there was a surplus and then to where there was an extreme deficit. In this paper we will discuss many scenarios over the years where Congress has taken actions to reduce the deficit and whether it was effective or not. We will …show more content…
That is where President Clinton came in. His administration created a deficit reduction program using tax increases and spending cuts that was made to lessen the deficit by $500 billion over five years. In 1990, the Budget Reinforcement Act of 1990 was used to enforce the Omnibus Budget Reconciliation Act of 1990 and also amend the federal government’s budget control process. This helped to achieve the first surplus for the United States since 1969 and it almost double in 1999 and in 2000 (Amacher & Pate, …show more content…
This is where the defense budget gets drastically reduced and is about half of the budget cuts. Republicans believe that other things should be cut more than military whereas the democrats feel that they could offset some of the budget cuts with new revenue by evaluating and eliminating loopholes. The hard part is that because there are limits on how much can be cut from government programs like Social Security and Medicare, the non defense programs will see lesser cuts. The Whitehouse that loans to small businesses would be reduced, there would be less food inspections, it will cause hundreds of thousand mentally ill people without their medication, IRS agents would not be able to help everyone with their tax questions and would not be able to audit. Lastly, over a 1000 federal agents would not be able to go after criminals and protect our borders. The other areas that will be affected are head start programs and National Park Services (Puzzanghera & Simon,