Fiscal Analysis : Fiscal Cliff

Who is denied a seat at the negotiation table about the healthcare? Who is removed physically by guards from the press conference in the White House?

The sequestration that the Obama administration proposed would leave America with the smallest ground force it has ever seen since 1940s, the smallest number of ships since 1915, and the smallest Air Force in history. The Republican Party adamantly opposed the impending defense spending cuts, stating that they were severe and that it would be a disaster to our national security, a decline of our nation’s defense industrial base, and would result in the layoff of more than 1 million skilled workers.

In response to a rapidly increasing national debt, President Barack Obama signed into law in August of 2011 the Budget Control Act (BCA) which mandated $1.2 trillion in across-the-board spending cuts, known as sequestration, over a 10-year period (Matthews, 2013). The BCA of 2011 was intended to serve as motivation for the Joint Select Committee on Deficit Reduction to come up with a deal for achieving equivalent spending cuts and avoid a mandatory sequestration (Matthews, 2013). The committee

1) Who are the parties in this negotiation? Who is the “third side?” (1 point)

On October 19, 2017, the Senate approved a budget that would aid Republican efforts to create tax cuts in a vote of 51-49. In essence, this budget would expand the federal deficit by 1.5 trillion dollars over a span of 10 years. According to Republicans, the intent of these tax cuts is to create more jobs as well as providing more income to Americans as a whole. However, many Democrats are starkly opposed to this budget because of how it will increase the federal deficit as well as reducing the potency of federal revenue provided by taxes. With the budget being approved by the Senate, it is now up to the House to adopt its version of the budget to officially make it into law.

Who is denied a seat at the negotiation table about the healthcare? Who is removed physically by guards from the press conference in the White House?

The federal budget deficit is a much discussed and little understood subject in American politics. The current recession has dramatically decreased tax revenues, driving the United States federal government to increase spending in an attempt to stabilize the economy. As a result the current federal deficit is at over $1.3 trillion dollars. This is approximately $47,754 per U.S. citizen or $137,552 per U. S. taxpayer (U.S. Debt Clock: Real Time, 2012).

“Ten Trillion and Counting,” presented by Frontline provides quite a picture of America’s national debt as it surpasses the trillion dollar mark. They ponder the financial well being of current and future retirees while also exposing on how America got into this mess, and what the Obama administration plans to do during his term. America is able to close the gap year to year in its national budget by selling bonds and T-bills. Foreigner countries who continually purchase these obligations are beginning to grow. Much like the Bush administration, the Obama administration has started borrowing big with plans to cut the budget years down the road. It is clear for anyone to see that this borrowing and the future promises of cutting cannot go

Growing spending and debt are undermining economic growth and may push the nation into a financial crisis in coming years. Edward then stated that the solution to these problems is to downsize every federal department by cutting the most harmful programs. This study proposes specific cuts that would reduce federal spending by almost one-quarter and balance the budget in less than a decade."

The act included, allowing the top tax income bracket to remain at 35 percent, a refund of a $1000 was allowed for the child credit tax, which included a greater tax for married couples (Dye). Unemployment was extended by 13 months to individual without employment, estate tax, American opportunity credit and social security payroll tax reduction also keep the momentum of the 2003 Bush Tax Act. In additional, the 2003 act and other tax credits were implemented in the 2010 Reform Act, such as the energy credit, which rewarded individual that replace non-energy with energy efficient

This may sound like a tax plan that will relieve the financial burden on lower-income taxpayers, directly benefiting the poor, but in actuality, cutting taxes for all in a regressive manner gives substantially more money to the wealthiest taxpayers and a very small amount to lower income taxpayers. According to his plan, a typical American family of four will be able to keep at least $1, 600 more of

Simply put resting at a conclusion after a negotiation may not necessarily be the ideal outcome unless cooperative is achieved by both parties. Bargaining in general could involve parents, friends, teachers, spouses, employers, and so on (Anderson, 2013). Likewise companies also negotiation contracts with one another or individuals involved within the companies.

For as long as Americans can remember there has always been a federal deficit. In fact, the only time in American history when there was no federal debt was under president Andrew Jackson, and it only lasted a single year(Wall Street Journal). The federal government never managed to pay off the debt again, although some administrations, like Coolidge’s and Clinton’s, have managed to run brief surpluses(Wall Street Journal). Yet today there seems to be no limit on the debt and deficit spending, and a key question has been pressed into the forefront of politics and fiscal policy, “is

Who: which means; who will speak on behalf of each party and how many people should be included in negotiation?

“He shall from time to time give to the Congress Information of the State of the Union, and recommend to their Consideration such Measures as he shall judge necessary and expedient.” On Tuesday, January 25, 2011 9:00 pm in the chamber of the House of Representatives Sergeant at Arms Wilson Livingood announced with great pride the arrival of the President of the United States. As President Obama worked his way to the podium members of Congress and distinguished guests greeted him with tremendous respect. Congress sat among each other commingled; consequently, it provided a healthier atmosphere in the chamber with less animosity. Republican House Speaker John Boehner and Vice President Joe Biden sat behind President Barack Obama as he