Reducing the Budget Deficit: Tax Policy Options

Sherlock, Molly F.

Library of Congress. Congressional Research Service.

关键词: Budget;    Budget reductions;    Federal budgets;    Government spending reductions;   

RP-ID  :  R41641
RP-ID  :  R41641_2011April26

美国|英语

来源: UNT Digital Library

【 摘 要 】

This report begins by reviewing the current fiscal situation. As a percentage of gross domestic product (GDP), revenues remain at historically low levels while spending remains elevated, contributing to budget deficits. The budget deficit in FY2011 is projected to be nearly $1.5 trillion, or 9.8% of GDP. Further, in recent years, the share of the federal budget devoted to mandatory spending has increased, making it difficult, if not impossible, for fiscal sustainability to be achieved through cuts in discretionary spending alone. Large budget deficits continue to contribute to a growing national debt, which, if left unchecked, could undermine future economic growth.