Reducing the Budget Deficit

Reducing the Budget Deficit

This report analyzes various revenue options for deficit reduction, highlighting proposals made by the President's Fiscal Commission and the Debt Reduction Task Force.

Author: Molly F. Sherlock

Publisher:

ISBN: OCLC:755746026

Category: Budget

Page: 32

View: 886

This report analyzes various revenue options for deficit reduction, highlighting proposals made by the President's Fiscal Commission and the Debt Reduction Task Force. Others, such as House Budget Committee Chairman Paul Ryan and the Obama Administration, have noted the importance of tax reform as part of a deficit reduction plans. These plans, however, do not provide the same level of detail as the Fiscal Commission and Debt Reduction Task Force, and are therefore not reviewed in detail as part of this report. The President's Fiscal Commission and the Debt Reduction Task Force took different approaches in the tax reform components of their fiscal sustainability plans. The President's Fiscal Commission raised additional tax revenues primarily through comprehensive income tax reform. The Fiscal Commission chose to broaden the tax base, allowing for both lower tax rates and increased federal revenues. The Debt Reduction Task Force's proposal also recommended individual income tax reform. The individual income tax reforms recommended by the Debt Reduction Task Force were designed to enhance efficiency and increase progressivity in the income tax system. Additional revenues in the Debt Reduction Task Force's plan originate from the proposed 6.5% debt-reduction sales tax.
Categories: Budget

Carbon Tax

Carbon Tax

A carbon tax could apply directly to carbon dioxide (CO2) and other greenhouse gas (GHG) emissions, or to the inputs (e.g., fossil fuels) that lead to the emissions. Unlike a tax on the energy content of each fuel (e.g.

Author: Jonathan L. Ramseur

Publisher: Createspace Independent Publishing Platform

ISBN: 1480151726

Category: Business & Economics

Page: 40

View: 405

The federal budget deficit has exceeded $1 trillion annually in each fiscal year since 2009, and deficits are projected to continue. Over time, unsustainable deficits can lead to reduced savings for investment, higher interest rates, and higher levels of inflation. Restoring fiscal balance would require spending reductions, revenue increases, or some combination of the two. Policymakers have considered a number of options for raising additional federal revenues, including a carbon tax. A carbon tax could apply directly to carbon dioxide (CO2) and other greenhouse gas (GHG) emissions, or to the inputs (e.g., fossil fuels) that lead to the emissions. Unlike a tax on the energy content of each fuel (e.g., Btu tax), a carbon tax would vary with a fuel's carbon content, as there is a direct correlation between a fuel's carbon content and its CO2 emissions. Carbon taxes have been proposed for many years by economists and some Members of Congress, including in the 112th Congress. If Congress were to establish a carbon tax, policymakers would face several implementation decisions, including the point and rate of taxation. Although the point of taxation does not necessarily reveal who bears the cost of the tax, this decision involves trade-offs, such as comprehensiveness versus administrative complexity. Several economic approaches could inform the debate over the tax rate. Congress could set a tax rate designed to accrue a specific amount of revenues. Some would recommend setting the tax rate based on estimated benefits associated with avoiding climate change impacts. Alternatively, Congress could set a tax rate based on the carbon prices estimated to meet a specific GHG emissions target. Carbon tax revenues would vary greatly depending on the design features of the tax, as well as market factors that are difficult to predict. One study estimated that a tax rate of $20 per metric ton of CO2 would generate approximately $88 billion in 2012, rising to $144 billion by 2020. The impact such an amount would have on budget deficits depends on which budget deficit projection is used. For example, this estimated revenue source would reduce the 10-year budget deficit by 50%, using the 2012 baseline projection of the Congressional Budget Office (CBO). However, under CBO's alternative fiscal scenario, the same carbon tax would reduce the 10-year budget deficit by about 12%. When deciding how to allocate revenues, policymakers would encounter key trade-offs: minimizing the costs of the carbon tax to “society” overall versus alleviating the costs borne by subgroups in the U.S. population or specific domestic industries. Economic studies indicate that using carbon tax revenues to offset reductions in existing taxes—labor, income, and investment—could yield the greatest benefit to the economy overall. However, the approaches that yield the largest overall benefit often impose disproportionate costs on lower-income households. In addition, carbon-intensive, trade-exposed industries may face a disproportionate impact within a unilateral carbon tax system. Policymakers could alleviate this burden through carbon tax revenue distribution or through a border adjustment mechanism. Both approaches may entail trade concerns.
Categories: Business & Economics

Options for Reducing the Deficit

Options for Reducing the Deficit

This volume presents 103 options that would decrease federal spending or increase federal revenues over the next decade.

Author: United States. Congressional Budget Office

Publisher:

ISBN: MINN:31951D03758890X

Category: Budget deficits

Page: 305

View: 969

"The Congress faces an array of policy choices as it confronts the dramatic increase in the federal government's debt over the past several years and the prospect of large annual budget deficits and further increases in that debt that are projected to occur in coming decades under current law. To help inform lawmakers about the budgetary implications of various approaches to changing federal policies, CBO periodically issues a compendium of policy options that would affect the federal budget as well as separate reports that include policy options in particular areas. This volume presents 103 options that would decrease federal spending or increase federal revenues over the next decade. Those options cover many areas, including defense, energy, Social Security, health care programs, other benefit programs, and provisions of the tax code. The budgetary effects identified for most of the options span the 10 years from 2014 to 2023 (the period covered by CBO's May 2013 baseline budget projections), although many of the options would have longer-term effects as well."--
Categories: Budget deficits

Taxing Choices in Deficit Reduction

Taxing Choices in Deficit Reduction

TAXING CHOICES IN DEFICIT REDUCTION I. Introduction Government deficits especially in developing countries are rising at an alarming pace . Further , it is believed that chronic deficits often discourage economic growth , and adversely ...

Author: John Baffes

Publisher:

ISBN: UCSD:31822006563688

Category: Budget deficits

Page: 24

View: 185

To control their deficits, Brazil, Mexico, and Pakistan should try to raise revenues and curtail spending simultaneously. In Argentina and Chile, the first priority should be to control public spending.
Categories: Budget deficits

Reducing the Budget Deficit Policy Issues

Reducing the Budget Deficit  Policy Issues

The President's Fiscal Commission raised additional tax revenues primarily through comprehensive income tax reform. The Fiscal Commission chose to broaden the tax base, allowing for both lower tax rates and increased federal revenues.

Author:

Publisher: DIANE Publishing

ISBN: 9781437986136

Category:

Page:

View: 607

Categories:

The Budget Deficit

The Budget Deficit

Author: United States. General Accounting Office

Publisher:

ISBN: STANFORD:36105127382567

Category: Budget deficits

Page: 140

View: 288

Categories: Budget deficits

Options for Reducing the Deficit

Options for Reducing the Deficit

This volume presents 115 options that would decrease federal spending or increase federal revenues over the next decade.

Author: Congress, Congressional Budget Office

Publisher: Government Printing Office

ISBN: 0160936047

Category: Business & Economics

Page: 304

View: 958

This volume presents 115 options that would decrease federal spending or increase federal revenues over the next decade. The federal budget deficit in fiscal year (FY) 2016 totaled $587 billion or 3.2 percent (%) of gross domestic product (GDP), up 2.5 percent (%) in year 2015. The options cover many areas ranging from defense to energy, Social Security and provisions of the tax code. This edition reports the estimated budgetary effects of various options and highlights some of the advantages and disadvantages of those options. Students pursuing research for economic coursework in high school, community college, and university levels may be interested in this vision presented by the Congressional Budget Office, Additionally, economists, federal budget analysts, political science scholars, financial planners, and lawmakers may be interested in this official resource. Related products: Other products produced by the U.S. Congressional Budget Office (CBO) are available here: https: //bookstore.gpo.gov/agency/237Economic Policy resources collection can be found here: https: //bookstore.gpo.gov/catalog/budget-economy/economic-policyEconomic Development publications are available here: https: //bookstore.gpo.gov/catalog/budget-economy/economic-development
Categories: Business & Economics

Some Microeconomics of Fiscal Deficit Reductions

Some Microeconomics of Fiscal Deficit Reductions

This paper considers the merits of reducing or eliminating some specific tax expenditure measures currently in force in the United States with a view to reducing the federal fiscal deficit.

Author: International Monetary Fund

Publisher: International Monetary Fund

ISBN: 9781451924053

Category: Business & Economics

Page: 31

View: 103

This paper considers the merits of reducing or eliminating some specific tax expenditure measures currently in force in the United States with a view to reducing the federal fiscal deficit. The paper starts from the observation that savings decisions in the United States are distorted and that therefore government borrowing to finance current expenditures results in significant welfare losses. It is possible by reducing or eliminating individual tax expenditures to reduce the fiscal deficit while at the same time enhancing economic efficiency. However, tax expenditures are heterogeneous so changes to the range of tax expenditures should be selective.
Categories: Business & Economics

Federal Deficit Reduction

Federal Deficit Reduction

This book reviews the scale and sources of the federal government's budgetary imbalance, various options for bringing spending and taxes into closer alignment, and criteria that lawmakers and the public might use to evaluate different ...

Author: Dan Iglehart

Publisher:

ISBN: 1624177808

Category: Business & Economics

Page: 174

View: 878

The United States is facing fundamental budgetary challenges. Federal debt held by the public exceeds 70 percent of the nation's annual output or GDP, a percentage not seen since 1950, and a continuation of current policies would boost the debt further. Although debt would decline to 58 percent of GDP in 2022 under the current-law assumptions that underlie the CBO's baseline projections, those projections depend heavily on significant increases in taxes and decreases in spending that are scheduled to take effect at the beginning of January. If, instead, lawmakers maintained current policies by preventing most of those changes from occurring, what the CBO refers to as the alternative fiscal scenario, debt held by the public would increase to 90 percent of GDP 10 years from now and continue to rise rapidly thereafter. This book reviews the scale and sources of the federal government's budgetary imbalance, various options for bringing spending and taxes into closer alignment, and criteria that lawmakers and the public might use to evaluate different approaches to deficit reduction.
Categories: Business & Economics

The Politics of Taxing and Spending

The Politics of Taxing and Spending

Emphasizing budgetary politics rather than economic theories, Patrick Fisher offers a clear, thorough overview of how money flows through our government coffers.A welcome realism pervades Fisher's analysis of budget making, and numerous ...

Author: Patrick Ivan Fisher

Publisher: Lynne Rienner Pub

ISBN: UOM:39015080820163

Category: Business & Economics

Page: 193

View: 479

How are budget decisions made by the US government? Is it fair to blame skyrocketing deficits on an inability to curtail spending? How - and why - are taxing and spending decidedly separate political processes? Emphasizing budgetary politics rather than economic theories, Patrick Fisher offers a clear, thorough overview of how money flows through our government coffers.A welcome realism pervades Fisher's analysis of budget making, and numerous case studies of events in recent budget politics bring his arguments to life. The result is a balanced wealth of material for classroom discussion.
Categories: Business & Economics

Value Added Tax

Value Added Tax

The United States, does not have a broad-based, national level consumption tax and in general, relies less on consumption taxes. This book examines the concepts, issues and experiences of the value-added tax in other countries.

Author: James M. Bickley

Publisher: Nova Publishers

ISBN: 1590335929

Category: Business & Economics

Page: 117

View: 958

The feasibility of levying a value-added tax (VAT) to reduce large forecast budget deficits seems to never go away. A VAT is imposed at all levels of production on the differences between firms' sales and their purchases from all other firms. A VAT is assumed to be fully shifted forward to consumers; hence, a VAT is a type of general consumption tax. The United States, does not have a broad-based, national level consumption tax and in general, relies less on consumption taxes. This book examines the concepts, issues and experiences of the value-added tax in other countries.
Categories: Business & Economics

Choices for Deficit Reduction

Choices for Deficit Reduction

"This report reviews the scale and sources of the federal government's budgetary imbalance, various options for bringing spending and taxes into closer alignment, and criteria that lawmakers and the public might use to evaluate different ...

Author: Leigh Angres

Publisher:

ISBN: OCLC:1108338283

Category: Budget deficits

Page: 32

View: 955

"This report reviews the scale and sources of the federal government's budgetary imbalance, various options for bringing spending and taxes into closer alignment, and criteria that lawmakers and the public might use to evaluate different approaches to deficit reduction. The report focuses on CBO's alternative fiscal scenario, rather than on the current-law baseline, to show the size of the policy changes-- relative to policies now in place-- that would be necessary to put the budget on a more sustainable path."--Summary.
Categories: Budget deficits

Carbon Taxes

Carbon Taxes

Policy-makers have considered a number of options for raising additional federal revenues, including a carbon tax. This book examines the carbon tax debate as a deficit reduction tool with a focus on policy design considerations.

Author: Neil Viveiros

Publisher: Nova Science Pub Incorporated

ISBN: 1626181489

Category: Business & Economics

Page: 147

View: 339

The federal budget deficit has exceeded $1 trillion annually in each fiscal year since 2009, and deficits are projected to continue. Over time, unsustainable deficits can lead to reduced savings for investment, higher interest rates, and higher levels of inflation. Restoring fiscal balance would require spending reductions, revenue increases, or some combination of the two. Policy-makers have considered a number of options for raising additional federal revenues, including a carbon tax. A carbon tax could apply directly to carbon dioxide (CO2) and other greenhouse gas (GHG) emissions, or to the inputs (e.g., fossil fuels) that lead to the emissions. Unlike a tax on the energy content of each fuel, a carbon tax would vary with a fuel's carbon content, as there is a direct correlation between a fuel's carbon content and its CO2 emissions. This book examines the carbon tax debate as a deficit reduction tool with a focus on policy design considerations.
Categories: Business & Economics

Choices for Deficit Reduction

Choices for Deficit Reduction

Figures and tables. This is a print on demand report.

Author: Leigh Angres

Publisher:

ISBN: OCLC:878144196

Category: Budget deficits

Page: 32

View: 264

"This report reviews the scale and sources of the federal government's budgetary imbalance, various options for bringing spending and taxes into closer alignment, and criteria that lawmakers and the public might use to evaluate different approaches to deficit reduction. The report focuses on CBO's alternative fiscal scenario, rather than on the current-law baseline, to show the size of the policy changes-- relative to policies now in place-- that would be necessary to put the budget on a more sustainable path."--Summary.
Categories: Budget deficits

Economic Choices

Economic Choices

Author:

Publisher:

ISBN: CORNELL:31924052159658

Category: Deficit financing

Page:

View: 446

Categories: Deficit financing

Taxing Choice

Taxing Choice

Because red ink is politically unpopular, the fund has remained largely unspent in order to help reduce the federal deficit. The stated purpose of the selective excise tax earmarked for the Airport and Airway Trust Fund was to create a ...

Author: William Shughart II

Publisher: Routledge

ISBN: 9781351291583

Category: Political Science

Page: 396

View: 591

Taxing behavior deemed "politically incorrect" has long been a convenient way for politicians to fund programs benefiting special interest groups, to the public's disadvantage. Government policy toward various goods - drugs, tobacco and alcohol, for example - has been locked into a regulatory cycle of tax and taboo. Support for legalizing other substances is buttressed by the revenue-generating power of so-called "sin" taxesi And the products subjected to excise taxation have varied from soft drinks, fishing gear and margarine to airline tickets, telephone calls and gasoline. Taxing Choice thoroughly addresses the costs and benefits of these predatory public policies.Shughart notes that the record of such punitive selective taxation has been anything but successful, hindering economic progress and failing to deliver the promised social benefits. In addition, the costs of selective taxes fall disproportionately on lower-income people, while more politically powerful interest groups benefit. At the same time, such policies are a poor way to raise funding for public services, and foster political corruption and self-serving bureaucracies accountable to no one. Indeed, policies discriminating against certain products may represent ominous trends easily extended into virtually every facet of people's lives. One can envision policies proscribing foods, sun bathing, obesity, and even books, films, and political and religious beliefs deemed "dangerous."Part I is devoted to the political economy of selective taxation. Contributors trace the history and politics of selective excise taxes in the United States, discussing the range of products that have been subject to such taxation from the founding period to the present. Part II explains how these taxes emerge in a political marketplace with opposing pressure groups scrambling for wealth transfers in their own favor. Part III looks at taxes on specific products as well as such banning policies as Prohibition and the war on drugs. Constitutional, economic, and civil liberty issues, including civil asset forfeiture and product liability, are discussed in Part IV. With the accelerating national debate over tax reform and the downsizing of government, Taxing Choice is a timely and far-reaching contribution to a debate of great interest to economists, policymakers, historians, sociologists, and taxpayers in general.
Categories: Political Science

Reducing the Deficit Spending and Revenue Options

Reducing the Deficit  Spending and Revenue Options

For these reasons , the primary focus for deficit reduction initiatives should be on the latter part of the ... Whether to cut spending or raise taxes is the second choice that must be addressed once a deficit goal is established .

Author:

Publisher:

ISBN: UCBK:B000308439

Category: Budget deficits

Page:

View: 479

Categories: Budget deficits