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Terminology
Simpson-Bowles Plan
Policy Options
Pros & Cons
Congressional Budget Office
100
This spending is largely made up of earned-benefit or entitlement programs and is determine by eligibility. It refers to the portion of the budget which goes through the annual appropriations process each year.
What is discretionary and mandatory spending?
100
These two were approached by President Obama to develop a plan to reduce the federal deficit.
Who are Alan Simpson and Erskine Bowles?
100
Congressional Budget Policy Options
What are the policy choices? 1. Revenue (ie. tax) increases 2. Spending decreases 3. Some combination of revenue increases and spending decreases
100
Reduced investment on infrastructure and education that decreases future economic production.
What is a con?
100
This organization analyzes the implications of policy options from an objective point of view.
What is the Congressional Budget Office?
200
The maximum amount of money the government can borrow. This number is set by Congress.
What is the debt ceiling?
200
A bipartisan commission created to develop specific recommendations for deficit reduction.
What is the National Commission on Fiscal Responsibility and Reform (NCFRR)?
200
Few economists or politicians advocate this to reduce the federal deficit.
What is federal tax increases?
200
Running a budget a deficit in order to pay for armed forces for security.
What is a pro?
200
1. Reduce mandatory spending 2. Reduce discretionary spending 3. Increase revenues These three categories are considered what?
What are budgetary reforms?
300
A tax where lower-income entities pay a higher fraction of their income in taxes than do higher-income entities. This tax can also be thought as taxes where the marginal tax rate is less than the average tax rate.
What is a regressive tax?
300
The outcome of the Simpson-Bowles plan
What is not put forward to Congress?
300
Increasing taxes on households who make more then 400000 dollars a year is an example this solution
What is revenue increases?
300
A balanced budget deficit ensure that the government will pay close attention to spending.
What is a pro?
300
The CBO believes that in order for a significant deficit reduction this needs to happen?
What is a combination of policies?
400
Sometimes called a flat tax this tax is where everyone regardless of income, pays the same fraction of income in taxes. This tax can also be thought of as taxes where marginal and average tax rates are the same
What is a progressive tax?
400
Reduction of about 340 billion and reduction in healthcare as well as gradually increasing the retirement age to 69, lessening benefits to middle and high income individuals and increasing the amount of money available to tax for social security. These are two of the options for the Simpson-Bowles plan.
What is cutting cost for medicare, medicaid and social security?
400
This theory implies that it is not necessary for a country to operate with a balanced budget.
What is Macroeconomic theory?
400
Increasing the age for social security would disproportionately harm lower income individuals because they depend on social security rates. But increasing the social security age would keep social security tax rates low.
What is a con and pro
400
The largest potential budget savings as proposed in 2020 is this.
What is allowing 2001, 2003, and 2009 tax cuts to expire
500
This is the total money a country's government owes. It's the total amount of the governments deficit minus the total amount of surplus
What is national debt?
500
What are methods to reduce discretionary spending and increase accumulative revenues
What is creating spending caps, reducing federal work force, a three year freeze on congressional pay and eliminating more then 150 tax deduction devisions?
500
Most people come to the agreement that these two options cannot reduce the deficit alone, and must be combined in some way.
What are spending cuts and increased revenues?
500
Letting previous tax cuts expire, therefore hurting lower-income tax payers.
What is a con?
500
The objectives considered by the analysis performed by the CBO.
What is 1. Balance the federal budget by 2020 2. Limit debt to 75% of GDP in 2020 3. A mid-way objective that would keep future deficits stable at a relatively small percentage of GDP