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Government Spending

As many Federal departments and agencies lurch into an era of running without funds, the leaders of both parties of Congress are spending less and less time searching for a compromise to balance the budget, and more and more time deciding how to use it to their advantage on the campaign trail. Meanwhile money is easily borrowed to pay for government overhead. 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 2002 (Hager 1899). 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

There is doubt by citizens that a balanced budget will become reality. A recent Gallop Poll from January, 1996 showed the budget as the #1 concern among taxpayers, but 4/5 of those interviewed said they doubt the GOP will do the job (Holding 14). Meanwhile, an ABC poll from November reported that over 70% of those polled disapprove of the current performance by Congress, and most blamed politicians for failure to ta


The government has already reduced the outlay for seniors 70 and younger who are on the program, but Republicans want more by increasing the eligibility for Social Security from 62 to 65 for early retirement, and 65 to 70 for standard retirement (Henderson 60). Smaller cuts included $11 billion in student loan reductions, $9.3 billion in labor cuts, $10 billion eliminated from public housing programs, and several other numerous disaster relief programs cut (Rubin 1222). The GOP also wants to eliminate programs initiated by Clinton like the National Service initiative, summer jobs, Goals 2000, and Americorps. Also, by terminating unnecessary farm programs, and cutting others by $12.3 billion, Republicans hope to cut the yearly $6 billion that the Federal Government spends on direct subsidies to farmers. Agricultural policies were also reformed and embedded into budget-reconciliation bills (Hosansky 3730).

Some might argue that a person might blow all of their income before the entitlement reductions come into place. Second, it might reduce the incentive to work and encourage people to hide their income. For instance, beneficiaries of Social Security, ages 62-64, lose $1.00 yearly in benefits for every $2.00 they earn in income or wages above $8,160 per year (Henderson 60). Some say increasing eligibility requirements would solve some problems, and propose raising the age of early retirement from 62 to 65, and standard retirement from 65 to 70. Another touchy subject in budget reduction is the argument that the poor are being left out of savings. According to the Clinton Administration, the GOP budget would cause a family with income of $13,325 per year to lose 11% of their income (Whitman 42). United States Treasury Department studies say the bottom 1/5 income families would have net tax increase of an average $12 to $26 under the GOP plan. The top 1/5 income families would receive more than 60% of the tax relief. A HHS analysis states that the GOP plan would also boost child poverty rates from 14.5% to 16.1%, and poor families with children would loose 6% of their income.

So after a pain-staking trial for GOP Republicans to create, promote, and pass their budget, as promised on campaign

One of the ways we are currently reducing the deficit includes the introduction of "means testing." This means that people would get entitlements based on need. The government already has reduced Social Security for modest income seniors age 70 and younger, but budget cutters want to broaden that idea (Henderson 60). There are 2 major problems with means testing. First, it is considered inherently unfair.



Some common words found in the essay are:
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Approximate Word count = 2752
Approximate Pages = 11 (250 words per page double spaced)


  

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