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This country has been dealing with a budget deficit for many years now. In an attempt to change this, on June 29, Congress voted in favor of HConRes67 that called for a 7-year plan to balance the Federal Budget by the year 2001. This would be done by incorporating $894 billion in spending cuts by 2002, with a projected 7-year tax cut of $245 billion. If this plan were implemented, in the year 2002, the U.S. Government would have the first balanced budget since 1969. Current budget plans are dependent on somewhat unrealistic predictions of avoiding such catastrophes as recession, national disasters, etc., and include minor loopholes. History has shown that every budget agreement that has failed was too loose. One might remember the Gramm-Rudman-Hollings bill that attempted to balance the budget, but left too many exemptions, and was finally abandoned in 1990.
So after a pain-staking trial for GOP Republicans to create, promote, and pass their budget, as promised on campaign trail 94, Clinton rejected the very bill he demanded. This essentially brought the federal budget back to square one. Clinton thought such a demand on Republicans to produce a budget would produce inner-party quarrels and cause the GOP to implode. Instead, they produced a fiscal budget that passed both houses of Congress, only to be deadlocked by a stubborn Democratic President Clinton. Meanwhile, Clinton bounced back with a CBO scored plan with lighter, less risky cuts to politically
sensitive areas like entitlements. Clinton's plan also saved dollars for education and did not include a tax increase, but most cuts would not take effect until he is out of office, in the year 2001. Although Clinton is sometimes criticized for producing a stalemate in budget talks, the White House points out that the debt has gone down since Clinton took office, with unemployment also falling. Republicans are quick to state that Clinton originally increased taxes in 1993 and cut defense programs, but his overall plan was for an increasing budget without deficit reduction.
As of 1996, the national debt was at an all time high of $5 trillion dollars, with interest running at a whopping $250 billion per year. This equals out to an individual responsibility of more than $50,000 per taxpayer. Nearly 90% of that debt has accumulated since 1970, and between 1980 and 1995, the debt grew by 500%. Currently, the debt grows by more than $10,000 per second, and at current rates, our government is about to reach its breaking point. If that's not enough to scare a taxpayer, by 2002, 60% of government spending will be for entitlements, and by 2012, these programs are projected to take up all government revenue. Not only economic development, but also family income is hurt by debt. With the cost of living going up, it becomes harder to find a job. According to the Concord Coalition, real wages peaked in 1973 and have gone down ever since. If the economy grew as fast as it did in 1950, without a debt, the median family income would be $50,000, compared to the present median of $35,000. As of current fiscal year's budget, the United States government spends $1.64 trillion yearly, $500 billion of that, or 1/3 of the total, is for discretionary spending. This discretionary spending is the target for most cuts, and seems to be the easiest to make cuts in. Overall, the difference between the two parties' budget plans is only $400 billion. This could easily be trimmed by eliminating tax cut and adjusting the consumer price index to reality. Democrats say the GOP plan is too lopsided, and Republicans criticize the Democrat plan for being unrealistic. A study by the Urban Institute shows GOP cuts will be felt mainly by the
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Clinton, President Truman, Representative James Greenwood,
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GOP, Congress, Federal Government, Office of Management and Budget, U.S. Government, Medicare, Clinton Administration, Sweden’s government, Concord Coalition,
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U.S., Washington, Sweden,
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the gop, the budget, discretionary spending, entitlement, budget resolution, Social Security, budget deficit, President Clinton, balanced budget, government spending, fiscal year, tax cut, debt, family income, Federal Government, median family income, cutting, student loans, early retirement, means testing, White House, United States government, Income Tax, United States Treasury Department, taxes, loopholes, yearly, entitlement programs, all time high, consumer price index, Medical Savings Accounts, one year, farm programs, national debt, reductions, President Truman, party line vote, individual responsibility, real wages, Federal law, disaster relief, economic development, overwhelming power, Concord Coalition, child poverty, single person, Urban Institute, crime prevention, Goals 2000, long term,