Budget Deficit

December 9, 2005 • Volume 15, Issue 43
Does it threaten America's economic future?
By Marcia Clemmitt

Introduction

Free school meals for 45,000 needy children like Andrea Woolfolk of Chicago would be cut under House legislation designed to reduce the deficit.  (Getty Images/Tim Boyle)
Free school meals for 45,000 needy children like Andrea Woolfolk of Chicago would be cut under House legislation designed to reduce the deficit. (Getty Images/Tim Boyle)

Over the past four years, Congress and the White House have handed out billions of dollars in tax cuts aimed at “giving back” surplus revenues to taxpayers. Congress has also enacted an expensive, new Medicare prescription-drug benefit as well as hefty spending increases for the military and homeland security. Now Congress wants to make permanent most of the tax cuts it first passed as temporary measures. Republicans say the cuts will spark economic growth. But many economists say the cuts will ensure substantial deficits for decades to come and trigger a budget crunch requiring cuts in social programs such as student loans, child-support enforcement and subsidized school lunches. Moreover, economists generally agree that running up new debt just before the baby-boom generation begins collecting expensive Medicare and Social Security benefits in 2011 will require tax increases and service cuts at unprecedented levels in the coming decade.

ISSUE TRACKER for Related Reports
Federal Budget and National Debt
Jul. 12, 2013  Government Spending
May 15, 2012  State Capitalism
Mar. 18, 2011  National Debt
Nov. 14, 2008  The National Debt
Dec. 09, 2005  Budget Deficit
Apr. 13, 2001  Budget Surplus
Feb. 01, 1991  Recession's Regional Impact
Jan. 20, 1984  Federal Budget Deficit
Sep. 09, 1977  Federal Reorganization and Budget Reform
Nov. 24, 1972  Limits on Federal Spending
Jan. 08, 1969  Federal Budget Making
Dec. 06, 1967  National Debt Management
Aug. 01, 1962  Fiscal and Budget Policy
Nov. 27, 1957  National Debt Limit
Mar. 20, 1957  Spending Controls
Dec. 24, 1953  Public Debt Limit
Feb. 13, 1952  Tax and Debt Limitation
Nov. 30, 1949  Government Spending
Jan. 06, 1948  Legislative Budget-Making
May 23, 1944  The National Debt
Feb. 01, 1943  The Executive Budget and Appropriations by Congress
Dec. 27, 1939  Revision of the Federal Budget System
Oct. 10, 1938  The Outstanding Government Debt
Nov. 20, 1937  Budget Balancing vs. Pump Priming
May 02, 1936  The Deficit and the Public Debt
Oct. 19, 1934  The Federal Budget and the Public Debt
Feb. 10, 1933  Extraordinary Budgeting of Federal Finances
Dec. 01, 1932  Reduction of Federal Expenditures
Dec. 01, 1930  The National Budget System
Oct. 02, 1930  Federal Revenues and Expenditures
Nov. 02, 1927  The Public Debt and Foreign Loans
Nov. 15, 1926  Rising Cost of Government in the United States
Feb. 05, 1925  Four Years Under the Budget System
BROWSE RELATED TOPICS:
Deficit, Federal Debt, and Balanced Budget
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