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Diane Publishing Books
Choices for Deficit Reduction: An Update
Leigh Angres (au)
The aging of the population, rising health care costs, and the expansion of federal subsidies for health insurance will put increasing pressure on the federal budget. Yet by 2020, federal spending apart from that for Social Security and major health care programs may drop to its smallest percentage of total output in more than 70 years, and federal revenues would be a larger percentage of output than they have been during the past 40 years. Still, the rising cost of Social Security and the major health care programs would lead to widening deficits. Federal debt held by the public would rise substantially over the long term as a share of the economyäó»s annual output äóî from 72% of output now to more than 100% of output 25 years from now äóî which would have negative consequences for the economy and reduce lawmakersäó» ability to respond to unexpected developments. This report reviews the scale and sources of the federal governmentäó»s budgetary imbalance, various options for bringing spending and taxes into closer alignment, and criteria that lawmakers and the public might use to evaluate different approaches to deficit reduction. Figures and tables. This is a print on demand report.
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