Federal Budget Analysis

“The federal budget is the yearly plan for how the US government will spend the money it takes from taxes and borrowing.” After thoroughly analyzing the federal budget from 2012, it is unquestionably evident that a majority of the money is being put into a few major categories, leaving room for the rest of the smaller categories to be financially neglected. Is this fair? It seems that the money could be more fairly distributed, and that there is room for cuts in some of the larger categories, to improve the littler ones. In each of the three budget clusters, the US Government should make adjustments in the way it is distributing money; changes involving the big five, the middle

Budgeting is perhaps the most essential process involved in the United States government. While this process seems to exist only in the background, it is, in reality, what allows all other processes of government to function as they do. In order to satisfy the most necessities of modern society, changes must be made to each of the three major categories of the budget: the big five, the middle five, and the little guys.

If our government didn’t spend anything would we have any type increase in our economy? I do not thing we would. Who would pay for the necessity things we need in order to thrive as a country. How would we keep up with our transportation system, invest in our future or keep us from totalitarianism? We have to have some type involvement from the government. I the 2016 election outcome came due to the fact that a lot of people felt like President Obama and his administration implicated too many policies that increase government spending. Such policies geared towards health care reform and income inequality. All in which increased taxes for each individual. I think a lot of people feel like the last eight years of government spending cost the tax payers a lot of unnecessary money. People were paying taxed for programs they didn’t support or agree with. “In fiscal year 2015, the federal government spent $3.7 trillion, amounting to 21 percent of the nation’s gross domestic product (GDP). Of that $3.7 trillion, over $3.2 trillion was financed by federal revenues. The remaining amount ($438 billion) was financed by borrowing. As the chart below shows, three major areas of spending each make up about one-fifth of the budget” (Center on Budget and Policy Priorities). This article outlines the major areas of spending which are

The U.S. Government receives most of its tax revenues from the labor of its people and

Federal spending is a controversial topic due especially to the growing budget deficit. Millions of American citizens pay taxes each year helping to fund the Federal Budget. Although American citizens’ tax dollars are spent by the Federal Budget, how the resources are divided and spent are not always a proper reflection of how society wants the resources to be allocated. In 2013, Washington spent nearly $3.5 trillion, while only collecting $2.8 in revenue, adding billions to the budget deficit. Where do these tax dollars go? Approximately, 23% was spent on health care such as Medicare, 22% on Social Security, 19% on national defense, 19% on

National debt is necessary for the funding of federal programs. Government spending is not only a focus of the United State’s political system, but it affects one’s personal choices and lifestyle. There is a concern with where and why money is spent. A key aspect of government spending is allocated to education. Education is fundamental in how one benefits society and the economy. The United States education program is not only necessary for the success of the country, but it is in need of a more efficient system with increased funding.

The annual United States budget has been steadily rising over the past decade. The projected federal budget for the 2012 fiscal year is going to be $3.7 million dollars compared to the $1.9 trillion in 2001. The 2012 budget is just a hundred million less than the 2011-year budget, according to the Congressional Budget Office. The reason for this ongoing rise in the federal budget can be acclaimed too the few financial crises that the country has faced. Beginning with September 11th attacks, to the housing bubble bursting, to the recession hit in 2007. The combination of all these major financial breakdowns, along with the hundreds of other fiscal responsibilities that the government holds has lead America into a very big budget deficit.

Political issues in the modern era are some part in everyone’s business. They affect us each individually, then as a country, and Americans have a special responsibility, being part of one of the most prosperous and happy nations on earth. Budget is a concept not often taken into full consideration by leaders in the government, even as we gain layers and layers of financial debt. Military expenditures exceed anything else when it comes to the use of the federal discretionary budget, and foreign affairs are certainly not a small part of citizens’ tax dollars at work. However, the real issue is not how much money is being spent, but the way it is spent. H h h h h h h h h h h h h h h h h h h h h h h h h h h h h h h h

According to Federal Budget 101, the federal budget was $3.8 trillion in the fiscal year of 2015. The $3.8 trillion of dollars make up about the 21 percent of the United States economy, which is measured by the GDP. It is $12,000 for everyone in America including kids. The mandatory spending makes up two-thirds of

assisting the president with production of budget. The OMB is responsible for making sure agencies, policies, and procedures are in compliance with the president’s policies. It is the largest office within the Executive Office of the President of the United States.

The money for the budget comes from income taxes, payroll taxes, and corporate income. These are the three main sources of the budget’s revenue. Income taxes are that the government collects from the American people. Income taxes make up the federal government’s largest revenue source. Payroll taxes are designated as trust funds. As trust funds, the money collect can only be used for a very specific purpose such as Social Security. Corporate taxes are paid by companies, though a marginal tax rate anywhere from fifteen percent to thirdly-five percent depending on how much profit the corporation made. There are also a couple of other types of taxes that add to the revenue such as excise taxes and miscellaneous taxes.

The Federal budget for the United States is a very important part of what the president must put together every year so every department in the government can know what they will be able to spend in the upcoming year. Government spending generally exceeds the budget put in place which is why America is so far into debt, the good thing about the budget is that about 21% of it goes back into the economy. The fiscal policy is how the government spending and taxation influence the economy based on what goods and services are purchased or the taxes collected.

The federal budget is one of the biggest political debates in Washington, D.C. Every year, the President and Congress debate over how much money should be allocated to certain areas of the budget to effectively manage the country. The Budget and Accounting Act of 1921 requires the President to submit the budget to Congress for each fiscal year. The federal budget includes funding request for all federal executive departments and independent agencies.

The first step to creating the federal government budget is the President submits a budget request to Congress. The executive branch gets requests from the federal agencies saying that different things and projects need money or that they don’t need money. So basically they discuss what project is more important. Yet these are all only proposals so they can either be accepted or denied depending on what the people think the country needs.

This paper will attempt to answer the question: Is the federal deficit and government deficits in general a good or a bad thing? While it may be easy to lose sight of how the government chooses to handle its money, it is also important for citizens to be conscious of how their money is being spent, and whether or not the current course that the government is plotted on is either sustainable or the best allocation of resources.