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The following article was published in our article directory on November 16, 2010.
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United States Cut Finance Deficit Budget Program Cause Dispute

Article Category: Business

Author Name: xia zihui

High fiscal deficit is the faltering U.S. economy, the recovery process has become a huge problem. Congressional Budget Control Committee has released a draft proposal to cut government deficits, the government plans to cut the deficit in 2020 amounted to 4 trillion. This bold publication of the draft proposal, immediately triggered great concern in the United States and the widespread controversy.

Congressional Budget Control Committee of President Obama set in February this year by the House and Senate Republican and Democratic members, to study the control of expenditure and taxation options. The committee's two co-chairs Bowers and Simpson recently released a draft proposal to cut the budget deficit, planned from 2012 to 2020, the highest total government deficit reduction of about 4 trillion. Among them, more than 1.4 trillion U.S. dollars from discretionary spending cuts, including reducing the Congress and the White House budget, cutting the federal travel budget, reduce the number of federal employees to reduce the number of federal contractors and reduce administrative costs within the Department of Defense to reduce the presence in the overseas Base the number of military personnel, slowing the growth of foreign aid, and the elimination of all special funds. There are over 700 billion U.S. dollars from the mandatory cuts, such as reducing agricultural subsidies, government employees retirement benefits, by the Government to pay the doctors, pharmaceutical companies and the number of lawyers; another 700 billion U.S. dollars from the tax increases, 6000 million from reduced debt interest payments. According to the proposal, by 2020, budget deficit reached 382 billion U.S. dollars just about gross domestic product in 2020 (GDP) of 1.6%. 2037, the budget will reach balance in subsequent years will be a surplus. Deficit Committee, in order not to upset the fragile economic recovery, reducing the budget deficit will grow from 2012.

2009 fiscal year, the U.S. federal budget deficit hit a record high of 1.42 trillion U.S. dollars. Fiscal year 2010 deficit reached 1.3 trillion U.S. dollars, although the previous fiscal year declined, but the fiscal deficit problem remains serious. It should be said, the consensus of the parties reduce the deficit, but the deficit has been the Commission's draft from the Democratic and Republican criticism. Reduction proposed in the draft social security and health care spending has been the Democratic side the content of the boycott, House Speaker Nancy Pelosi said the Bill is totally unacceptable. In terms of tax increases and Republicans expressed strong opposition. "The New York Times" columnist, Nobel laureate in economics Paul Krugman column published that outline the proposal is very ridiculous, they were just doing routine by Washington, solve practical problems. Krugman believes that this is a very old tax cuts for the wealthy and the erosion of social safety net measures, the deficit should be put away bags and leave the Commission.

Congressional Budget Control Committee, a total of 18 members, two co-chairs by the draft proposals put forward by the need to December 1 this year, 18 members received the support of 14 members sent to the U.S. Congress to discuss the vote. Even if sent to Congress, the Members of the proposed approach for still not determined. Analysts expect that a considerable number of parts of the draft will not be adopted, such as the reduction of 100 billion U.S. dollars of military spending proposal will be adopted if the U.S. weapons program, medical benefits and have a huge impact overseas military bases. In the Republican-controlled House of Representatives, the Republicans generally support the project expenditure to maintain existing weapons, it is expected that in the current environment, the draft will not be implemented. Nevertheless, some experts pointed out that although not all of the draft adopted by Congress, but is expected to Congress in the coming months to develop long-term budget targets a significant impact.

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