The United States Government Spending

2326 WordsNov 27, 201610 Pages
The United States Government Spending It is clear that the relationship between the spending policy and the tax policy has dramatically changed over the past hundred years. It has been noticed that the Democratic Party proposals show that increases in spending or cut taxes have been paid with new revenue sources or by offsetting spending reductions (Hungerford 1). For the Republican Party on the other side, tax and spending decisions tend to show more favoritism for isolation from one other and with little regard to any impact on deficits and federal debts (Hungerford 1). Republicans pay for tax cuts and spending increases with more of financed sources undergone during Republican administrations (Hungerford 1). With these Democratic and Republican ways of dealing with spending increases and tax cuts, many problems arise because, while the federal government is projected to run deficits further into the future, the U.S economy is more focused on generating considerable amounts of income growth far into the future. This is just another way of saying that the real fiscal challenge in all of this is the political problem that arises from raising revenues that are sufficient to meet the population’s spending needs (Hungerford 2). The authority of Congress to raise revenue “to pay the debts and provide for the common Defense and general Welfare of the United States” that comes from the Constitution Article I Section 8 is one that really needs careful handling as
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