Addressing the Long-Run Budget Deficit: A Comparison of Approaches

Gravelle, Jane G.

Library of Congress. Congressional Research Service.

关键词: Public debt;    Budgets;    Fiscal policy;    Taxation;    Tax cuts;   

RP-ID  :  R41970
RP-ID  :  R41970_2014Dec09

美国|英语

来源: UNT Digital Library

【 摘 要 】

The growth of the national debt, which is considered unsustainable under current policies, continues to be one of the central issues of domestic federal policy making. On August 2, 2011, Congress adopted, and the President signed, the Budget Control Act (BCA; P.L. 112-25), which might be viewed as an initial step in addressing long-run debt issues. This report examines alternative approaches to reducing the deficit, relating to the immediate issues arising from the BCA and the extended tax cuts as well as to ongoing, longer-term decisions about how to bring the debt under control. It focuses on the trade-offs between limiting the provision of defense and domestic public goods, reducing transfers to persons including entitlements for the elderly and those with low income, reducing support for state and local governments, and raising taxes. Using projections of the debt and deficit, it also addresses how limiting reliance on one source of deficit reduction creates pressure on other sources.