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How money is used, raised, and wasted in Washington
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 budget since 1969.
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
take action (Cloud 3709). These accusations of failure to follow through
come with historical proof that Congress and Clinton have failed to
compromise and resolve the issue. After all, 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 lax. 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 (Weinberger 33).
o 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 stalemated 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.
Startling Facts about the budget:
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 (Rau M-1). 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 (Rau M-l), and at current rates, a
baby born in 1992 will pay 71% of his or her income in net taxes. 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 progr
Quotes talked about in this paper
Terminology talked about in this report
Social Security, GDP,
Names talked about in this report
President Clinton, Senate Budget Committee Chairman, Rubin, Henderson, Hager, Rau, Hosansky, Weinberger, President Truman, Representative Bill Orton, Congressman Jesse Helms, Representative James Greenwood, Rick Bowere, Neil Howe,
Organizations included in this research paper
Republicans, Congress, Federal Government, Office of Management and Budget, Concord Coalition, U.S. Government, Medicare, Sweden's government, Clinton Administration, BA, Urban Institute, Treasury Department, EITC, National Service,
Locations included in this term paper
3 times, Washington, Wyoming, Sweden, America,
Holiday talked about in this report
New Years Day,
Facility mentioned in this research paper
Companies referenced in this essay
ABC, York Publishing.,
Keywords mentioned in this essay
the budget, the gop, entitlement, balanced budget, government spending, discretionary spending, budget resolution, deficit, Social Security, Senate Budget Committee, tax cut, debt, Budget deficits, President Clinton, Concord Coalition, fiscal year, United States, Federal Government, family income, cutting, national debt, median family income, United States government, taxes, student loans, early retirement, White House, means testing, Income Tax, 7 years, entitlement programs, United States Treasury Department, all time high, loopholes, federal debt, consumer price index, Medical Savings Accounts, yearly, taxpayer, conservative democrats, President Truman, Bill Orton, farm programs, Gallop Poll, Federal law, reductions, Bill Strauss, real wages, party line vote, trade surplus,