US Government Spending
US Government Spending
Throughout the 21st century, government spending has experienced many changes that have impacted the federal deficit, economic growth, and government policies. The United States government spending includes expenses such as pensions, health care, education, defense, welfare, protection, transportation, interest, and others. All of these expenses have increased over the last decade, while the government’s revenue has remained constant. The discrepancy between the government outlay and income has caused dramatic increases in the Gross Public Debt over the past ten years, which is currently over $15 trillion. Changes will have to be implemented in the budget and taxation system in order to reduce the deficit that has been created by the government spending between 2000 and 2011. The Federal Budget has reached all time highs in the past ten years and spending has increased substantially for all expenses. Each year the President presents the US Government Budget to Congress for approval. Although there are also several agencies that provide budget data and analysis, the President has a strong influence over the allocation of funds to government programs. The past three presidential administrations have each had their own affect on the budget and the Federal Deficit. Clinton was able to start the 21st century with a Federal Surplus of $235 billion. The Federal Surplus was achieved by spending restraints and increased taxes implemented between 1993 and 2000. In the year 2000 alone, there was a $200 billion increase in income taxes. The Social Security tax on payrolls also played an important roll in the budget surplus. This tax generated an additional $41 billion each year during Clinton’s administration and continued to increase until 2009. The Federal Budget was balanced and the deficit was removed, but the surplus did not last long. Already by the end of 2001, Bush’s tax cuts had significantly lowered the surplus. After September 11th,
Throughout the 21st century, government spending has experienced many changes that have impacted the federal deficit, economic growth, and government policies. The United States government spending includes expenses such as pensions, health care, education, defense, welfare, protection, transportation, interest, and others. All of these expenses have increased over the last decade, while the government’s revenue has remained constant. The discrepancy between the government outlay and income has caused dramatic increases in the Gross Public Debt over the past ten years, which is currently over $15 trillion. Changes will have to be implemented in the budget and taxation system in order to reduce the deficit that has been created by the government spending between 2000 and 2011. The Federal Budget has reached all time highs in the past ten years and spending has increased substantially for all expenses. Each year the President presents the US Government Budget to Congress for approval. Although there are also several agencies that provide budget data and analysis, the President has a strong influence over the allocation of funds to government programs. The past three presidential administrations have each had their own affect on the budget and the Federal Deficit. Clinton was able to start the 21st century with a Federal Surplus of $235 billion. The Federal Surplus was achieved by spending restraints and increased taxes implemented between 1993 and 2000. In the year 2000 alone, there was a $200 billion increase in income taxes. The Social Security tax on payrolls also played an important roll in the budget surplus. This tax generated an additional $41 billion each year during Clinton’s administration and continued to increase until 2009. The Federal Budget was balanced and the deficit was removed, but the surplus did not last long. Already by the end of 2001, Bush’s tax cuts had significantly lowered the surplus. After September 11th,