what is the current federal deficit of the united states
Baseline (budgeting)


Baseline budgeting is an accounting method the United States Federal Government uses to develop a budget for future years. Baseline budgeting uses current spending levels as the "baseline" for establishing future funding requirements and assumes future budgets will equal the current budget times the inflation rate times the population growth rate. Twice a year—generally in January and August—CBO prepares baseline projections of federal revenues, outlays, and the surplus or deficit. Those projections are designed to show what would happen if current budgetary policies were continued as is—that
14522077
National debt of the United States


The national debt of the United States is the total debt, or unpaid borrowed funds, carried by the Federal Government of the United States, which is measured as the face value of the currently outstanding Treasury securities that have been issued by the Treasury and other federal government agencies. The terms "national deficit" and "national surplus" usually refer to the federal government budget balance from year to year, not the cumulative amount of debt. A deficit year increases the debt, while a surplus year decreases the debt as more
15240916
Deficit reduction in the United States


United States economy is the jobs deficit, not the budget deficit. The magnitude of the jobs crisis is clearly illustrated by the jobs gap – currently around 12.3 million jobs. That is how many jobs the economy must add to return to its peak employment level before the 2008–09 recession and to absorb the 125,000 people who enter the labor force each month. At the current pace of recovery, the gap will be not closed until 2020 or later." She explained further that job growth between 2000 and 2007 was only half what
10842134
2011 United States federal budget


and average 3.1 percent of GDP from 2014 to 2021. Those projections, however, are based on the assumption that tax and spending policies unfold as specified in current law. Consequently, they understate the budget deficits that would occur if many policies currently in place were continued, rather than allowed to expire as scheduled under current law. On February 14, 2011, President Obama released his 2012 federal budget request. The report updated the projected 2011 deficit to $1.590 trillion. This is based on estimated revenues of $2.228 trillion
6051333
Ben Bernanke


and financing the current account deficits of the United States. (Alternative reasons include relatively low worldwide investment coupled with low U.S. savings.) As the recession began to deepen in 2007, many economists urged Bernanke (and the rest of the Federal Open Market Committee) to lower the federal funds rate below what it had done. For example, Larry Summers, later named Director of the White House's National Economic Council under President Obama, wrote in the "Financial Times" on November 26, 2007—in a column in which he
3253978
Fiscal policy of the United States


this, in fiscal year 2008, the deficit would increase to $455 billion and is projected to continue to increase dramatically for years to come due in part to both the severity of the current recession and the high-spending fiscal policy the federal government has adopted to help combat the nation's economic woes. As a result, the federal budget deficit increased to $1.2 trillion in fiscal year 2009, or 9.8% of the gross domestic product (GDP). Over subsequent years both the economy and the deficit recovered to
5716189
2011 United States federal budget


gross domestic product is listed at $13.519 trillion (in 2005 dollars). As of January 2011, the Congressional Budget Office (CBO) projected that if current laws remain unchanged, the federal budget will show a deficit of close to $1.5 trillion, or 9.8 percent of GDP. The CBO projects total revenues of $2.228 trillion and total outlays of $3.708 trillion for a deficit of $1.48 trillion for 2011. The deficits in CBO's baseline projections drop markedly over the next few years as a share of output
6051332
Political debates about the United States federal budget


2011: "Like many economists, I believe that the immediate crisis facing the United States economy is the jobs deficit, not the budget deficit. The magnitude of the jobs crisis is clearly illustrated by the jobs gap – currently around 12.3 million jobs. That is how many jobs the economy must add to return to its peak employment level before the 2008–9 recession and to absorb the 125,000 people who enter the labor force each month. At the current pace of recovery, the gap will be not closed until 2020 or later.
10841972
Political debates about the United States federal budget


deficit from an estimated 4.7% GDP to 1.2% GDP. Total deficit reduction could be as high as $7.1 trillion over a decade if current law was enforced and not overridden by new legislation. The now infamous phrase was coined by Federal Reserve Chairman Ben Bernanke in February 2012, during one of his required appearances before Congress on the state of the U.S. economy. He described ... "a massive fiscal cliff of large spending cuts and tax increases" on Jan. 1, 2013. The fiscal cliff was mostly avoided by the
10841966
Baseline Reform Act of 2013


States Federal Government uses to develop a budget for future years. Baseline budgeting uses current spending levels as the "baseline" for establishing future funding requirements and assumes future budgets will equal the current budget times the inflation rate times the population growth rate. Twice a year—generally in January and August—CBO prepares baseline projections of federal revenues, outlays, and the surplus or deficit. Those projections are designed to show what would happen if current budgetary policies were continued as is—that is, they serve as a benchmark for
13727018
Project for Democratic Union


pressing external challenges, especially dealing with undemocratic states such as Iran, Russia, and a rising China. Thirdly, because the economic imbalance between Germany and the European periphery poisons political discourse so that what was intended to unite now increasingly divides us. The solution to these problems, Europe's 'democratic deficit', and her failure to address the current currency crisis can only be a 'federal' one and must be owned by the entire population of the Union democratically expressed. This is the only structure which will enable Europeans
10894217
Political debates about the United States federal budget


budget deficits and debt is challenging. Presidents inherit a "deficit trajectory" from their predecessors. In January each year, CBO publishes its "Budget and Economic Outlook" report which forecasts the deficit and debt changes over the following decade, among other variables. This is referred to as the "current law baseline" which is based on laws in effect at that point time and expected economic conditions. This can be used as a baseline for comparison of actual performance thereafter, bearing in mind economic conditions can change significantly relative to
10842042
Deficit reduction in the United States


") with an extensive list of policy options and their impact on the deficit. CBO reported in November 2013 that addressing the long-term debt challenge would require reducing future budget deficits. Lawmakers would need to increase revenues further relative to the size of the economy, decrease spending on Social Security or major health care programs relative to current law, cut other federal spending to even lower levels by historical standards, or adopt a combination of these approaches. Rep. Paul Ryan (R) has proposed the "Roadmap for America's
10842151
Deficit reduction in the United States


a sustainable path, lawmakers will have to make significant changes to tax and spending policies—increasing revenues more than they would under current law, reducing spending for large benefit programs below the projected amounts, or adopting some combination of those approaches." CBO reported in November 2013 that addressing the long-term debt challenge would require reducing future budget deficits. Lawmakers would need to increase revenues further relative to the size of the economy, decrease spending on Social Security or major health care programs relative to current law, cut other federal
10842077
Financial position of the United States


to household savings exceeding business investment. By definition, there must therefore exist a government budget deficit so all three net to zero. The government sector includes federal, state and local. For example, the government budget deficit in 2011 was approximately 10% GDP (8.6% GDP of which was federal), offsetting a capital surplus of 4% GDP and a private sector surplus of 6% GDP. Wolf argued that the sudden shift in the private sector from deficit to surplus forced the government balance into deficit, writing:
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Deficit reduction in the United States


Deficit reduction in the United States refers to taxation, spending, and economic policy debates and proposals designed to reduce the Federal budget deficit. Government agencies including the Government Accountability Office (GAO), Congressional Budget Office (CBO), the Office of Management and Budget (OMB),and the U.S. Treasury Department have reported that the federal government is facing a series of important long-run financing challenges, mainly driven by an aging population, rising healthcare costs per person, and rising interest payments on the national debt. CBO reported in July
10842071
National debt of the United States


deficit (or surplus). Since FY1960, the federal government has run on-budget deficits except for FY1999 and FY2000, and total federal deficits except in FY1969 and FY1998–FY2001. For example, in January 2009 the CBO reported that for fiscal year 2008 (FY2008) the "on-budget deficit" was $638 billion, offset by an "off-budget surplus" (mainly due to Social Security revenue in excess of payouts) of $183 billion, for a "total deficit" of $455 billion.
15240942
United States federal budget


implemented, for the most part. CBO reported in June 2019 that under this scenario: "Large budget deficits over the next 30 years are projected to drive federal debt held by the public to unprecedented levels—from 78 percent of gross domestic product (GDP) in 2019 to 144 percent by 2049. " Alternative scenarios assume something other than currently enacted laws. CBO reported in June 2019: "If lawmakers changed current laws to maintain certain major policies now in place—most significantly, if they prevented a cut in discretionary
3674648
Political debates about the United States federal budget


must be zero by definition. In the U.S., a foreign financial surplus (or capital surplus) exists because capital is imported (net) to fund the trade deficit. Further, there is a private sector financial surplus due to household savings exceeding business investment. By definition, there must therefore exist a government budget deficit so all three net to zero. The government sector includes federal, state and local. For example, the government budget deficit in 2011 was approximately 10% GDP (8.6% GDP of which was federal
10841974
TARGET2


was just "saying that the current-account deficits were sustained with the extra refinancing credit behind the TARGET balances" and this would "not equate to claiming that current-account deficits and TARGET deficits were positively correlated". Alexander L. Wolman believes that rising Interdistrict Settlement Account (ISA) balances – the US-equivalent of rising TARGET balances, if there were no yearly rebalancing – would not be a reason for concern in the US, because the borderlines of the Federal Reserve Districts do not follow national, not even state
5329305
Deficit reduction in the United States


n't really blame members of Congress for lacking the courage or responsibility to get the budget under some semblance of control. All the evidence suggests that they are just doing what voters want them to do, which is nothing." A Bloomberg/Selzer national poll conducted in December 2009 indicated that more than two-thirds of Americans favored tax increases on the rich (individuals making over $500,000) to help solve the deficit problem. Further, an across-the-board 5% cut in all federal discretionary spending would be
10842183
Domestic policy of the Ronald Reagan administration


core New Deal safeguards, such as the United States Securities and Exchange Commission (SEC), Federal Deposit Insurance Corporation (FDIC), the GI Bill and Social Security, while rolling back what he viewed as the excesses of 1960s and 1970s liberal policies. These policies were labeled by some as "Trickle-down economics," though others argue that the combination of significant tax cuts and a massive increase in Cold War related defense spending resulted in large budget deficits, an expansion in the U.S. trade deficit, as well as
12822464
1997 United States federal budget


(2) Maintaining growth while protecting senior citizens, middle-class families and children. The Clinton Administration projected a US$40 billion surplus by 2002. A key aspect of the FY1997 budget is what was known as the "trigger". The trigger program essentially ensured that tax cuts after 2000 would end if the deficit was not at least US$20 billion below the Congressional Budget Office's estimate. Conversely, if the deficit "was" at least US$20 billion below CBO estimates then the tax cuts would continue and the
15468766
Political debates about the United States federal budget


added to the deficit relative to the 2009 baseline forecast. The American Recovery and Reinvestment Act (ARRA), the main stimulus bill during the Obama era, was roughly $800 billion of this increase as well. For comparisons across longer periods of time, the debt-to-GDP ratio is a more effective comparison than comparing raw dollars. Since the country is aging, more recent Presidents are likely to run higher deficits relative to GDP due to higher healthcare and Social Security costs. For example, the current law baseline
10842047
Twin deficits hypothesis


is deemed to have a double deficit if it has a current account deficit "and" a fiscal deficit. In effect, the economy is borrowing from foreigners in exchange for foreign-made goods. Traditional macroeconomics predicts that persistent double deficits will lead to currency devaluation/depreciation that can be severe and sudden. In the case of the United States, the twin deficit graph as a percentage of GDP shows that the budget and current account deficits did move broadly in sync from 1981 until the early 1990s, but since then,
10686917
1993 Canadian federal election


smaller mandate. That election was almost wholly focused on the proposed Free Trade Agreement with the United States. Over the next five years, the popularity of Mulroney and his party collapsed. The late 1980s recession badly harmed the Canadian economy, as unemployment increased dramatically and the federal budget deficit grew. When the Conservatives had come to office in 1984, the federal deficit was at an unprecedented $34.5 billion. Despite pledges to reduce it, the deficit had grown to over $40 billion by 1993. The federal debt had also
5551635
United States fiscal cliff


baseline and alternative scenarios for the period starting January 2013: Consideration of these scenarios and other options leads to what the CBO calls "a broad spectrum of fiscal policy choices." The CBO estimated that the total deficit of fiscal year "2012" (which ended on September 30, 2012) will be $1.171 trillion. The CBO also estimated that the total reductions to the fiscal year "2013" deficit by letting current laws take effect (which increase taxes and reduce spending) would be about $560 billion. Therefore
13706686
United States federal budget


by definition. Since the foreign and private sectors are in surplus, the government sector must be in deficit. Wolf argued that the sudden shift in the private sector from deficit to surplus due to the global economic conditions forced the government balance into deficit, writing: "The financial balance of the private sector shifted towards surplus by the almost unbelievable cumulative total of 11.2 per cent of gross domestic product between the third quarter of 2007 and the second quarter of 2009, which was when the financial deficit of US government (federal and
3674639
2012 Chicago summit


shrinking by $487 billion in the decade to come, with another half trillion in cuts possible depending on the outcome of the highly partisan negotiations over future reductions to the federal deficit." Smart Defense is intended to make Europe more responsible for European security and the European periphery as the United States military withdraws from the continent. NATO's Libya operation may be a model for such engagement: "The United States will do what it must—playing roles and providing surge capabilities that only it can provide—and Europe will bear
21297357
Political debates about the United States federal budget


significant tax cuts and increased spending on defense and infrastructure. The Committee for a Responsible Federal Budget and Moody's Analytics reported in 2016 that enacting these policies would dramatically increase the annual budget deficits and national debt over the 2017–2026 periods, relative to the current policy baseline, which already includes a sizable debt increase. Before analyzing the budget debates, some background on the key terms used and sources of information may be helpful. The definitive analysis of the federal budget is performed by the Congressional Budget Office (CBO), which is
10841950
Political debates about the United States federal budget


), offsetting a capital surplus of 4% GDP and a private sector surplus of 6% GDP. Wolf argued that the sudden shift in the private sector from deficit to surplus forced the government balance into deficit, writing: "The financial balance of the private sector shifted towards surplus by the almost unbelievable cumulative total of 11.2 per cent of gross domestic product between the third quarter of 2007 and the second quarter of 2009, which was when the financial deficit of US government (federal and state) reached its peak...No
10841975
Fund accounting


a choice between tax cuts or spending increases. A significant deficit will result in spending cuts or borrowing. Ideally, surpluses and deficits should be small. Federal government accounting uses two broad groups of funds: the "federal funds group" and the "trust funds group". The United States government uses accrual basis accounting for all of its funds. Its consolidated annual financial report uses two indicators to measure financial health: "unified budget deficit" and "net operating (cost)/revenue". The unified budget deficit, a cash
3305615
Deficit reduction in the United States


make decisions about the role of the federal government, then make policy choices to obtain the revenue necessary to fund those roles, to put the U.S. on a sustainable fiscal path. In January 2008, then GAO Director David Walker presented a strategy for addressing what he called the federal budget "burning platform" and "unsustainable fiscal policy." This included improved financial reporting to better capture the obligations of the government; public education; improved budgetary and legislative processes, such as "pay as you go" rules; the restructure
10842168
2012 United States federal budget


the current 24%. It did not immediately increase the debt limit, but would have required Congress to pass a Balanced Budget Amendment to the United States Constitution before increasing the debt limit. The bill was tabled by a vote of 51–46 in the Senate on July 22, and thus defeated. An alternate plan proposed by the bipartisan Gang of Six senators and favored by the Obama administration would contain about $3.7 trillion in deficit reduction over the next decade, including both new revenue and large spending cuts, including in entitlement healthcare
11112072
Economic liberalization in the post–World War II era


significant cuts in the upper tax brackets. There was a massive increase in Cold War related defense spending that caused large budget deficits, the U.S. trade deficit expansion, and contributed to the Savings and Loan crisis, In order to cover new federal budget deficits, the United States borrowed heavily both domestically and abroad, raising the national debt from $700 billion to $3 trillion, and the United States moved from being the world's largest international creditor to the world's largest debtor nation. Peter Gowan has argued that the United
15970045
Social Security Trust Fund


obligation of the federal government to program beneficiaries. Under current law, when the program goes into an annual cash deficit, the government has to seek alternate funding beyond the payroll taxes dedicated to the program to cover the shortfall. This reduces the trust fund balance to the extent this occurs. The program deficits are expected to exhaust the fund by 2034. Thereafter, since Social Security is only authorized to pay beneficiaries what it collects in payroll taxes dedicated to the program, program payouts will fall by an estimated 21%. The
12935188
Budget and Accounting Transparency Act of 2014


collections, and offsetting receipts. The proposed changes to the budgetary treatment of federal credit programs would increase the estimated costs of such programs compared to measures used under current law. (This legislation would not change the terms of such credit programs, but would change what is recorded in the budget as the cost of credit assistance.) CBO estimates that if fair-value procedures were used to estimate the cost of new credit activity in 2014, the total deficit for the year would be about $50 billion greater than the deficit
13727123
Tim Burns (businessman)


In a speech prior to the nomination vote, Burns referred to his support for the Tea Party movement, articulated his positions on the current plans for health care reform, United States energy independence and the national deficit, and described his nomination as "an opportunity to put a common sense conservative in a seat that has long been held by a political insider". He identifies as pro-life, staunchly opposes federal funding for elective abortion, and opposed the federal health care legislation. Burns received endorsements from Sarah Palin, Dick
6489430
United States budget sequestration in 2013


, the Congress and the Administration should consider replacing the sharp, front-loaded spending cuts required by the sequestration with policies that reduce the federal deficit more gradually in the near term but more substantially in the longer run. Such an approach could lessen the near-term fiscal headwinds facing the recovery while more effectively addressing the longer-term imbalances in the federal budget." Bernanke also explained that although current laws would stabilize the debt-to-GDP ratio at around 75%, the ratio averaged less than 40% from
9037004
History of Austria


FPÖ), which included German nationalist and liberal political currents. It was founded in 1955 as a successor organisation to the short-lived Federation of Independents (VdU). The United States countered starvation in 1945–46 with emergency supplies of food delivered by the US Army, by the United Nations Relief and Recovery Administration, (UNRRA), and by the privately organized Cooperative for American Remittances to Europe (CARE). Starting in 1947, it funded the Austrian trade deficit. Large-scale Marshall Plan aid began in 1948 and
18308081
Federal budget (economics)


starts a full year ahead before the fiscal year begins. The fiscal year in the United States starts on the 1st of October and runs through until September 30th year this means that the budget for 2018 began in the fall of 2016. The federal budgets in the United States are like Germany and Australian federal governments as they normally run a deficit and this is down to the economies engaging in expansionary policy. in the United States, it is the president's role to submit the budget the proposal to the United States Congress.
11840671
Foreign trade of the United States


became a more excessive long-run trade deficit, mostly with Asia. By 2012, the U.S. trade deficit, fiscal budget deficit, and federal debt increased to record or near-record levels following the implementation of broad unconditional or unilateral U.S. free trade policies and formal trade agreements in the preceding decades. The US last had a trade surplus in 1975. The balance of trade in the United States has been a concern among economists and business people. Warren Buffett, founder of Berkshire Hathaway, was quoted in the Associated Press
21759535
Deficit reduction in the United States


and that is to borrow money, and that is what we have done for decades now at the local, state and federal level...So, the next time you accuse Washington of being irresponsible, save some of that blame for yourself and your friends." Andrew Sullivan said in March 2010: "...the biggest problem in this country is...they're big babies. I mean, people keep saying they don't want any tax increases, but they don't want to have their Medicare cut, they don't want
10842172
Bob Hawke


completely transformed its relationship with Asia, Europe and the United States. Both Hawke and Keating would claim the credit for being the driving force behind the success of the Australian Dollar float. That year the economy was seen to be in crisis with a 40% devaluation of the Australian dollar, a marked increase in the current account deficit and the loss of the Federal Government's triple A rating. Among other reforms, the Hawke Government dismantled the tariff system, privatised state sector industries, ended the subsidisation of loss-making industries
3692643
Political debates about the United States federal budget


to lack of customers." Prior to his election, President Donald Trump proposed policies including significant income tax cuts and increased spending on defense and infrastructure. The Committee for a Responsible Federal Budget (CRFB) and Moody's Analytics reported in 2016 that enacting these policies would dramatically increase the annual budget deficits and national debt over the 2017-2026 periods, relative to the current policy baseline, which already includes a sizable debt increase. For example, the CRFB estimated that: The CBO will "score" any major budgetary legislation
10841977
United States Chained Consumer Price Index


fixed weight" CPI also takes such substitutions into account, but does so through a periodic adjustment of the "basket of goods" that it represents, rather than through a continuous adjustment in that basket. Application of the chained CPI to federal benefits has been controversially proposed to reduce the federal deficit. Currently, the Bureau of Labor Statistics computes each month average prices of 211 different categories of goods and services in 38 different urban geographical areas, totaling 8,018 different elementary indices. From these, higher-level indices are obtained as
17262479
Political positions of Rand Paul


his presidential campaign he stated, "As President of the United States, I will work to balance our budget and only spend what comes in. We must cut spending in all areas, particularly areas that are better run by state and local governments." Paul supports cutting government federal spending, a balanced budget amendment, and lowering taxes. He has criticized both Republicans and Democrats on deficit spending. Paul has been a longtime opponent of the Emergency Economic Stabilization Act of 2008. For his presidential campaign, he has stated that
2642155
Concord Coalition


Institute, and The American Enterprise Institute. Former Comptroller General of the United States David M. Walker serves as an advisor to the tour and participates in its public events. The tour has visited college campuses and electoral campaign events to encourage Americans to demand action from their representatives in Congress regarding the growing national debt. The group's executive director, Robert Bixby, has noted that the federal deficit "is not some abstract issue in Washington" and that it "has real-world consequences for what's going to happen in state
686149
Tax Cuts and Jobs Act of 2017


1.891trillion after taking into account macroeconomic feedback effects, in addition to the $9.8trillion increase forecast under the current policy baseline and existing $20trillion national debt. CBO reported on December 21, 2017, that: "Overall, the combined effect of the change in net federal revenue and spending is to decrease deficits (primarily stemming from reductions in spending) allocated to lower-income tax filing units and to increase deficits (primarily stemming from reductions in taxes) allocated to higher-income tax filing units." The Joint Committee on
7920678
Economy of the United Kingdom


, changing the net international investment position from a surplus of £469bn to a deficit of £22bn. Deeper analysis of outward investment revealed that much of what was thought to be foreign debt securities owned by British companies were actually loans to British citizens. Inward investment also dropped, from a surplus of £120bn in the first half of 2016 to a deficit of £25bn in the same period of 2017. The UK had been relying on a surplus of inward investment to make up for its long-term current account deficit
13127570
United States Virgin Islands


subject to US federal income taxes on U.S. Virgin Islands source income; they pay taxes to the territory equal to what their federal taxes would be if they lived in a state. The Henry E. Rohlsen International Airport serves St. Croix and the Cyril E. King International Airport serves St. Thomas and St. John. The U.S. Virgin Islands is the only US jurisdiction that drives on the left. This was inherited from what was then-current practice on the islands at the time of the 1917 transfer of the territory to the United States from
13611030
Akaka Bill


. They are: The current version of the bill provides for negotiations between the United States and the proposed new Hawaiian government. The bill provides for the new Hawaiian government to negotiate for land, rights, and resources, however, the bill does not indicate what the Federal government will be negotiating for, that is what it is Hawaiians have that the Federal government will expect in return at the negotiating table. Typically however, in Tribal/U.S. negotiations, Indians give up their legal and other grievances against the United States in
9730222
Deficit reduction in the United States


a total of $4,403 billion. Plan estimates indicate that if all these measures were implemented, the deficit in 2021 would be 2.3% GDP or $565 billion. Key categories of savings over the 10 years included in the $3,670 billion are: The Center on Budget and Policy Priorities supported the proposal, stating: "President Obama proposed a balanced and well-designed package today that would boost economic growth and jobs in the short run while stabilizing federal debt as a share of the economy after 2013. By keeping federal
10842163
Social Security debate in the United States


of the annual federal budget deficit commonly reported in the media. For example, CBO reported that for fiscal year 2012, the "On-budget Deficit" was $1,151.3 billion. Social Security and the Post Office are considered "Off-Budget". Social Security had an estimated surplus of $62.4 billion by CBO accounting (different from the $54 billion reported by the Trustees) and the Post Office had a deficit of $0.5, resulting in a "Total Budget Deficit" of $1,089.4 billion. This latter
19599865
Deficit reduction in the United States


2013 that the Federal government should replace the sequester with smaller spending cuts today and larger cuts in the future, due to concerns the sequester would slow the economy. He reminded lawmakers of the CBO's guidance that recent austerity measures were projected to reduce economic growth by up to 1.5 percentage points in 2013 (relative to what it would have been otherwise), of which 0.6 percentage points related to the sequester. Bernanke stated that the long-run fiscal issues mainly related to an aging population and healthcare costs. He wrote:
10842140
Deficit reduction in the United States


from 77% GDP in 2017 to over 100% GDP by 2028. The 2017 debt to GDP level ranked 43rd highest out of 207 countries. CBO periodically updates an extensive listing of budget deficit reduction options. A budget deficit refers to expenditures that exceed tax collections during a given period and require borrowing to fund the difference. The U.S. federal government has run annual deficits in 36 of the past 40 fiscal years, with surpluses from 1998–2001. Debt represents the accumulation of deficits over time. Debt held by the public, a
10842074
United States fiscal cliff


bring the long-term deficit and debt trajectory under control. For example, economist Paul Krugman recommended that the U.S. focus on employment in the short-run, rather than the deficit. Federal Reserve Chair Ben Bernanke emphasized the importance of balancing long-term deficit reduction with actions that would not slow the economy in the short-run. Charles Konigsburg, who directed the bi-partisan Domenici-Rivlin deficit reduction panel, advocated avoiding the fiscal cliff while taking steps to reduce the budget deficit over time. He recommended the
13706703
United States balance of trade


some areas and can no longer rely on the financial sector and consumer spending to drive demand. In 1985, the U.S.had just begun a growing trade deficit with China. During the 1990s, U.S. trade deficit became a more excessive long-run trade deficit, mostly with Asia. By 2012, the U.S. trade deficit, fiscal budget deficit, and federal debt increased to record or near record levels following accompanying decades of the implementation of broad unconditional or unilateral U.S. free trade policies and formal trade agreements. The US last had a
21064319
2014 United States federal budget


, including the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund, U.S. Postal Service discretionary administrative expenses, and specified major functional categories for FY2013-FY2023. It also authorized a variety of deficit-neutral reserve funds, and a reserve fund for tax reform, as well as deficit-reduction reserve funds for government reform and efficiency, and to promote corporate tax fairness. The Senate resolution was an "original bill" which means that it was a bill drafted by a committee (rather than by
14519072
Mick Mulvaney


and Regulatory Affairs. In February 2018, Mulvaney released the President's $4.4 trillion 2019 United States federal budget, which would add $984 billion to the federal deficit that year, and $7 trillion over the next 10 years. Later that month, the President signed the Bipartisan Budget Act of 2018, which allowed yearly federal deficits to reach $1 trillion. In March 2018, Congress ultimately passed the $1.3 trillion Consolidated Appropriations Act, 2018, which funded the government's operations until the end of the fiscal year
8654551
Healthcare reform debate in the United States


people, at a federal budget cost of nearly $850 billion (not counting unfunded mandates) over ten years, reduce the ten-year deficit by $130 billion, and reduce the deficit in the second decade by around 0.25% of GDP. The House bill, meanwhile, would cover an additional 36 million people, cost roughly $1050 billion in coverage provisions, reduce the ten-year deficit by $138 billion, and slightly reduce the deficit in the second decade. It is worth noting that both bills rely
13250431
Unemployment in the United States


. Keynesian economics argues that when the economic growth is slow, larger budget deficits are stimulative to the economy. This is one reason why the significant deficit reduction represented by the fiscal cliff was expected to result in a recession. However, the deficit from 2014 to 2016 was in line with historical average, meaning it was not particularly stimulative. For example, CBO reported in October 2014: "The federal government ran a budget deficit of $486 billion in fiscal year 2014...$195 billion less than the shortfall recorded in fiscal
15347968
United States federal budget


from very low levels to more typical historical levels. Intuitively, the annual budget deficit should represent the amount added to the national debt. However, there are certain types of spending ("supplemental appropriations") outside the budget process which are not captured in the deficit computation, which also add to the national debt. Prior to 2009, spending for the wars in Iraq and Afghanistan was often funded through special appropriations excluded from the budget deficit calculation. In FY2010 and prior, the budget deficit and annual change in the national
3674633
Current account


arising as a result of a surplus. However, more recently some observers have suggested that the opposite causal relationship may be important in some cases. In particular, it has controversially been suggested that the United States current account deficit is driven by the desire of international investors to acquire US assets (see Ben Bernanke, William Poole links below). However, the main viewpoint undoubtedly remains that the causative factor is the current account and that the positive financial account reflects the need to finance the country's current account deficit. Current
20410565
United States federal budget


that recipe of short-term investments in growth and jobs with a long-term path of fiscal responsibility is the right approach to take for, I think, not only the United States but also for Europe." A variety of government task forces, expert panels, private institutions, politicians, and journalists have made recommendations for reducing the deficit and slowing the growth of debt. Several organizations have compared the future impact of these plans on the deficit, debt, and economy. One helpful way of measuring the impact of
3674666
United States federal budget


questions: According to a December 2012 Pew Research Center poll, only a few of the frequently discussed deficit reduction ideas have majority support: Fewer than 50% support raising the retirement age for Social Security or Medicare, reducing military defense spending, limiting the mortgage interest deduction, or reducing federal funding for low income persons, education and infrastructure. There are a variety of proposed strategies for reducing the federal deficit. These may include policy choices regarding taxation and spending, along with policies designed to increase economic growth and reduce unemployment.
3674661
Sectoral balances


surplus of 4% GDP and a private sector surplus of 6% GDP. Godley wrote in 2005 that: "[T]he deficit of the general government (federal, state, and local) is everywhere and always equal (by definition) to the current account deficit plus the private sector balance (the excess of private saving over investment)." Expressed as a formula, the sectoral balance identity is: (Savings - Investment) + (Imports - Exports) + (Tax Revenues - Outlays) = 0; or
8948253
Financial position of the United States


"The financial balance of the private sector shifted towards surplus by the almost unbelievable cumulative total of 11.2 per cent of gross domestic product between the third quarter of 2007 and the second quarter of 2009, which was when the financial deficit of US government (federal and state) reached its peak...No fiscal policy changes explain the collapse into massive fiscal deficit between 2007 and 2009, because there was none of any importance. The collapse is explained by the massive shift of the private sector from financial deficit into surplus or, in
1550287
United States federal budget


state) reached its peak...No fiscal policy changes explain the collapse into massive fiscal deficit between 2007 and 2009, because there was none of any importance. The collapse is explained by the massive shift of the private sector from financial deficit into surplus or, in other words, from boom to bust." Economist Paul Krugman also explained in December 2011 the causes of the sizable shift from private sector deficit to surplus: "This huge move into surplus reflects the end of the housing bubble, a sharp rise in household saving
3674640
Deficit reduction in the United States


spending to reduce the deficit. A National Journal poll in February 2012 reported: "When asked to identify the biggest reason the federal government faces large deficits for the coming years, just 3 percent of those surveyed said it was because of 'too much government spending on programs for the elderly'; only 14 percent said the principal reason was 'too much government spending on programs for poor people.' Those explanations were dwarfed by the 24 percent who attributed the deficits primarily to excessive defense spending, and the 46 percent plurality
10842186
Fiscal Responsibility Act of 2007


year the federal government runs a budget deficit. An exception is made for spending that the Director of the Congressional Budget Office determines is directly related to a military conflict lasting over 30 days or in response to a terrorist attack on the United States. The bill, if passed, would take effect no earlier than the 2008 fiscal year. If the federal government is determined by the Director of the Congressional Budget Office to have run a deficit in 2008, then the pay of members of Congress will be docked in 2009. Any
10444210
Social Security Trust Fund


that: Notwithstanding any other provision of law, the receipts and disbursements of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund shall not be counted as new budget authority, outlays, receipts, or deficit or surplus for purposes of - (1) the budget of the United States Government as submitted by the President, (2) the congressional budget, or (3) the Balanced Budget and Emergency Deficit Control Act of 1985. The trust funds run surpluses in that the amount paid
12935171
Foreign trade of the United States


(January 20, 2006) as saying "The U.S. trade deficit is a bigger threat to the domestic economy than either the federal budget deficit or consumer debt and could lead to political turmoil... Right now, the rest of the world owns $3 trillion more of us than we own of them." In both a 1987 guest editorial to the "Omaha-World Herald" and a more detailed 2003 "Fortune" article, Buffett proposed a tool called Import Certificates as a solution to the United States' problem and
21759536
2011 United States federal budget


and outlays of $3.818 trillion. The enacted 2011 budget called for $2.314 trillion in receipts and $3.630 trillion in outlays, according to the September 1, 2011 Mid-Session Review. The "2011 Financial Report of the United States Government" was released on December 23, 2011, showing a net operating cost and cash-based budget deficit for the year of $1.3 trillion. According to the Government Accountability Office, the 'accrual deficit provides more information on the longer-term implications of the government's annual
6051334
Economy of Honduras


of Honduras's imports come from its Central American neighbors. Despite its status as beneficiary of both the Caribbean Basin Initiative (CBI) and the Generalized System of Preferences (GSP)--both of which confer duty-free status on Honduran imports to the United States—Honduras has run a long-standing trade deficit with the United States. Total exports of goods and services by Honduras in 1992 were $843 million, of which about 52 percent went to the United States. The current account deficit, however, continues to rise, from
13004293
Deficit reduction in the United States


the Medicare and Medicaid programs. Fareed Zakaria said in February 2010: "But, in one sense, Washington is delivering to the American people exactly what they seem to want. In poll after poll, we find that the public is generally opposed to any new taxes, but we also discover that the public will immediately punish anyone who proposes spending cuts in any middle class program which are the ones where the money is in the federal budget. Now, there is only one way to square this circle short of magic,
10842171
Deficit reduction in the United States


time for austerity at the Treasury." In other words, when the economy is doing well (a boom), that is the time to raise taxes and cut spending (austerity, to reduce deficits), while the reverse is applicable when the economy is in recession (a slump), at which time lowering taxes and raising spending (stimulus, to increase deficits) is the proper remedy. CBO reported in January 2017: "To avoid the negative consequences of high and rising federal debt and to put debt on
10842076
Political debates about the United States federal budget


the non-partisan organization charged with evaluating the budgetary and economic impact of legislation for the U.S. Congress. The CBO provides reports on specific legislation, as well as overall analyses of the budget and economy. For example, the annual "CBO Budget and Economic Outlook" covers recent historical information as well as revenue, expense, deficit, and debt projections for a ten-year forecast period. It also includes economic projections, as budgetary results are related to economic results. The CBO provides a "current law baseline" which
10841951
National debt of the United States


of these deficits or unfunded obligations is an estimated $45.8 trillion. This is the amount that would have had to be set aside in 2009 in order to pay for the unfunded obligations which, under current law, will have to be raised by the government in the future. Approximately $7.7 trillion relates to Social Security, while $38.2 trillion relates to Medicare and Medicaid. In other words, health care programs will require nearly five times more funding than Social Security. Adding this to the national debt and other federal obligations
15240935
2018 United States federal budget


if you are a member of the Trump family, you may receive a tax break of up to $4 billion, but if you are a child of a working-class family, you could well lose the health insurance you currently have through the Children's Health Insurance Program and massive cuts to Medicaid". The actual text of the budget blueprint did not seem to include any cuts to CHIP or Medicaid at the time; however, the ultimate Senate bill stipulates that extension of CHIP funding will not increase the deficit,
19028944
United States federal budget


also be measured against this baseline. The CBO estimated the impact of Trump's tax cuts and separate spending legislation over the 2018–2028 period in their annual "Budget & Economic Outlook", released in April 2018: The Congressional Budget Office (CBO) reports its "Long-Term Budget Outlook" annually, providing at least two scenarios for spending, revenue, deficits, and debt. The 2019 Outlook mainly covers the 30-year period through 2049. The "extended baseline scenario" assumes that the laws currently on the books will be
3674647
United States federal budget


The United States federal budget comprises the spending and revenues of the U.S. federal government. The budget is the financial representation of the priorities of the government, reflecting historical debates and competing economic philosophies. The government primarily spends on healthcare, retirement, and defense programs. The non-partisan Congressional Budget Office provides extensive analysis of the budget and its economic effects. It has reported that large budget deficits over the next 30 years are projected to drive federal debt held by the public to unprecedented levels—from 78 percent of gross domestic
3674587
Concord Coalition


The Concord Coalition is a political advocacy group in the United States, formed in 1992. A bipartisan organization, it was founded by U.S. Senator Warren Rudman, former Secretary of Commerce Peter George Peterson, and U.S. Senator Paul Tsongas. The Concord Coalition's advocacy centers on ending deficit spending and promoting a balanced budget in the U.S. federal government. The group's mission statement is to educate "the public about the causes and consequences of federal budget deficits, the long-term challenges facing America's unsustainable entitlement programs, and how
686147
Deficit reduction in the United States


debt to GDP ratio at 60%, with up to $6 trillion in debt reduction over the 2011–2020 period. Specific plan elements included: The CBO reported in September 2011 that: "Given the aging of the population and rising costs for health care, attaining a sustainable federal budget will require the United States to deviate from the policies of the past 40 years in at least one of the following ways: During testimony before the Congressional Joint Deficit Reduction Committee in September 2011, CBO Director Douglas Elmendorf counseled members of Congress to
10842167
2012 United States federal budget


2.627 trillion in revenues and $3.729 trillion in outlays (expenditures) for 2012, for a deficit of $1.101 trillion. The April 2011 Republican plan contained $2.533 trillion in revenues and $3.529 trillion in outlays, for a deficit of $0.996 trillion. The enacted budget contained $2.469 trillion in receipts and $3.796 trillion in outlays, for a deficit of $1.327 trillion. The Department of Defense budget is divided into two parts: the base budget, and Overseas Contingency Operations which includes the Iraq War and the
11112088
Deficit Reduction Act of 1984


The Deficit Reduction Act of 1984 (), also known as the DEFRA, was a federal law enacted in the United States in 1984. Originally part of the stalled Tax Reform Act of 1983, it was adjusted and reintroduced as the Tax Reform Act of 1984. After passing in the House, it was merged with the Senate version into its final form. Collectively known as the Deficit Reduction Act of 1984, it was signed into law by president Ronald Reagan on July 18, 1984. The Office of Tax Analysis of
9266374
Federal Hall


eleventh of the initial 12 proposed amendments was adopted as the 27th Amendment. Also, the Judiciary Act of 1789 was enacted in the building, which set up the United States federal court system that is still in use today. In 1790, the United States capital was moved to Philadelphia, and what had been Federal Hall once again housed the government of New York City until 1812, when the building was razed with the opening of the current New York City Hall. Part of the original railing and balcony floor where Washington was
10754568
History of the United States (1918–1945)


government employees and reducing pensions to veterans by as much as 15%. Otherwise, Roosevelt warned, the nation faced a $1 billion deficit. The bill revealed clearly what Roosevelt had always maintained: that he was as much of a fiscal conservative at heart as his predecessor was. And like the banking bill, it passed through Congress almost instantly—despite heated protests by some congressional progressives. The celebrated First Hundred Days of the new administration also produced a federal program to protect American farmers from the uncertainties of the market through
19440356
Bond vigilante


and over-borrow. From October 1993 to November 1994 US 10-year yields climbed from 5.2% to just over 8.0% fueled by concerns about federal spending in what became informally known as the "Great Bond Massacre". With some guidance from Robert Rubin, the United States Secretary of the Treasury, the Clinton Administration and Congress made an effort to reduce the deficit. 10-year yields dropped to approximately 4% by November 1998. Clinton political adviser James Carville said at the time that “I used to think that if there was
8396149
United States federal budget


deficits (primarily stemming from reductions in spending) allocated to lower-income tax filing units and to increase deficits (primarily stemming from reductions in taxes) allocated to higher-income tax filing units." CBO forecast in January 2017 (just prior to Trump's inauguration) that revenues in fiscal year 2018 would be $3.60 trillion if laws in place as of January 2017 continued. However, actual 2018 revenues were $3.33 trillion, a shortfall of $270 billion (7.5%) relative to the forecast. This difference
3674655
United States fiscal cliff


) would cut the 2013 deficit approximately in half and significantly reduce the trajectory of future deficits and debt increases for the next decade and beyond. However, the 2014 deficit reduction would adversely impact the economy in the short-run. On the other hand, if Congress acts to extend current policies (the alternative scenario), deficits and debt will rise rapidly over the next decade and beyond, slowing the economy over the long run and dramatically increasing interest costs. CBO estimates that if the baseline scenario is allowed to take effect
13706684
David Cameron


Barack Obama asked congressional approval, which was not ultimately granted. In response to the Great Recession, Cameron undertook the austerity programme. This was a deficit reduction programme consisting of sustained reductions in public spending, intended to reduce the government budget deficit and the welfare state in the United Kingdom. The National Health Service and education have been "ringfenced" and protected from direct spending cuts. Together with Chancellor George Osborne, Cameron aimed to eliminate the structural deficit (i.e. deficit on current spending as opposed to investment) and to have
21926664
Tax policy and economic inequality in the United States


10 years, roughly 1% GDP on average per year. This would raise the total tax burden for those subject to the wealth tax from 3.2% of their wealth under current law to about 4.3% on average, versus the 7.2% for the bottom 99% families. For scale, the federal budget deficit in 2018 was 3.9% GDP and is expected to rise towards 5% GDP over the next decade. The plan received both praise and criticism. Two billionaires, Michael Bloomberg and Howard Schultz, criticized the proposal
1615401
History of United States debt ceiling


(as of 03/2015 a total increase of $6498bil) during Pres. Obama's eight years in office. The 1995 request for a debt ceiling increase led to debate in Congress on reduction of the size of the federal government, which led to the non-passage of the federal budget, and the United States federal government shutdown of 1995–96. The ceiling was eventually increased and the government shutdown resolved. In 2011, Republicans in Congress used the debt ceiling as leverage for deficit reduction because of the lack of Congressional normal order
5865549
Political debates about the United States federal budget


initially estimated that ARRA would increase the federal budget deficit by $185 billion during 2009, by $399 billion in 2010, by $134 billion in 2011, for a total of $787 billion over the 2009-2019 period. The total was later revised to $825 billion. There is significant debate on whether fiscal stimulus is actually effective in creating jobs and boosting the economy, with critics claiming that all it does is increase the deficit unnecessarily. CBO estimated in August 2011 that ARRA had significant positive effects on GDP
10842039
Deficit reduction in the United States


"To address both the near- and longer-term [fiscal] issues, the Congress and the Administration should consider replacing the sharp, front-loaded spending cuts required by the sequestration with policies that reduce the federal deficit more gradually in the near term but more substantially in the longer run. Such an approach could lessen the near-term fiscal headwinds facing the recovery while more effectively addressing the longer-term imbalances in the federal budget." Economist Michael Spence said in August 2011 that over the 1990–2008 period, job creation
10842141
National debt of the United States


revenue, deficits, and debt. The 2019 Outlook mainly covers the 30-year period through 2049. The CBO reported: Large budget deficits over the next 30 years are projected to drive federal debt held by the public to unprecedented levels—from 78 percent of gross domestic product (GDP) in 2019 to 144 percent by 2049. That projection incorporates CBO’s central estimates of various factors, such as productivity growth and interest rates on federal debt. CBO’s analysis indicates that even if values for those factors differed from the agency’s
15240956
2018 United States federal budget


sent his budget proposal to Congress, remaining largely unchanged from the initial proposal. The OMB estimated FY2018 would involve outlays of $4.094 trillion and revenues of $3.654 trillion, a $440 billion deficit. The 2018-2027 period planned $48.901T in outlays and $45.751T in revenues, a $3.15T deficit. The Congressional Budget Office reported its evaluation of the budget on July 13, 2017, including its effects over the 2018–2027 period. The proposed 2018 budget includes $54 billion in cuts to federal departments
19028942
United States foreign aid


way to reduce the federal budget deficit, while 81% thought aid was more important than reducing deficit. Thomas Pogge, Director of the Global Justice Program and Leitner Professor of Philosophy and International Affairs at Yale University, has predicted that public opinion will not change even while the hardships suffered by poor people are rising, partly as a result of the Global Financial Crisis. Some claim the U.S. is helping corrupt governments with the aid. Worldwide opinion of the United States improves with contributions to developing countries. Several polls have been done
14471657
Political debates about the United States federal budget


and 2003 tax cuts beyond 2010 at $2.9 trillion, with an additional $606 billion in debt service costs (interest), for a combined total of $3.5 trillion. CRS cited CBO estimates that extending the cuts permanently, including the repeal of the estate tax, would add 2% of GDP to the annual deficit. For scale, the historical average deficit as % GDP was approximately 2.8% from 1966 to 2015, so this represented a nearly doubling of the deficit. The Center on Budget and Policy Priorities wrote
10841995