The primary goal of the paper is to determine whether government spending has increased or decreased. In turn, in this instance, the budgeting has to be inspected carefully to define the presence of these matters. Furthermore, the fluctuations of the different types of taxation systems were revealed. Lastly, the influence of these factors on the national economy has to be assessed with the assistance of specific examples.
Firstly, the modifications in governmental spending have to be determined, as they have a substantial effect on the development and economic performance of the country. It remains apparent that the federal expenditure tends to rise due to the variety of aspects, which require attention, such as improvement of secret service (the increase of investment by $500,000 annually) and water safety ($150,000) (Congressional Budget Office, 2016).
Additionally, the presence of the globalization vehemently affects the areas of investments in the world by increasing the necessity of the expenditure in particular fields (Rickard, 2012). For instance, the spending in the healthcare industry has risen significantly at national and local levels (“Trade-offs”, 2014). As for the overall federal spending of the United States of America, it remains evident that it has a tendency to increase due to the presence of a variety of states of expenditure. For instance, the spending in the fiscal year 2015 (approx. $3.7 trillion) is lower than the estimated expenses in 2016 ($4 trillion) (U.S Government Publishing Office, 2016).
In turn, the fluctuations of taxes are depicted with the assistance of particular examples. Firstly, taxes play the role of the enhancer of the national revenue due to their ability to be the primary source of income (Cooper, Lutz, & Palumbo, 2015). In turn, the imposture of the different percentages of taxes equalizes the distribution of revenues across the country (Cooper et al., 2015). Despite the positive influence of the taxes on the national economy, the insufficiency of governmental decisions might lead to the growth of the debt of the country. For instance, the current increase in the standard deduction rises the number of citizens, who pay the reduced amount of taxes (Phillips, 2015). The application of this approach can be considered as the core cause of the decrease in governmental income and an increase in external debt.
Lastly, the effect of these matters on the domestic economy has to be determined, as it identifies the functioning of the federal budget and defines its actions on national and international levels. For instance, investment in health care has been increasing in the following years. In this case, it remains evident that the states and regions, which devote significant attention to the health care policies, tend to provide a better quality of the services to the patients of the medical institutions (Cooper, 2009).
It could be said that the growing expenditure of the social services highlights the ability of the country to enhance the well-being of the citizens while offering them opportunities for the functioning and development of the individuals. In turn, the government has a tendency to depict the social matters related to education and health care and prioritize them while constructing the budget for the fiscal year 2017 (Office of Management and Budget, 2016). Lastly, the taxes could be considered as the primary sources of income and define the opportunity of implementing these policies into practice. However, the low tax rates damage the economy, as the country is not able to cover the expenses. The debt of the country has been increasing due to the inability to monitor and establish new rates sufficiently.
References
Congressional Budget Office: Cost Estimates Search.(2016). Web.
Cooper, R. (2009). States with more health care spending have better-quality health care: Lessons about Medicare. Health Affairs, 28(1), 103-115.
Cooper, D., Lutz, B., & Palumbo, M. (2015). The role of taxes in mitigating income inequality across the United States. National Tax Journal, 68(4), 943-974.
Office of Management and Budget: The President’s budget for fiscal year 2017. (2016). Web.
Phillips, K. (2015). 2016 tax rates, brackets & exemption amounts may result in lower bills.Forbes. Web.
Rickard, S. (2012). Welfare versus subsidies: Governmental spending decisions in an era of globalization. The Journal of Politics, 74(4), 1171-1183.
Trade-offs of increased healthcare spending in the US. (2014). PharmacoEconomics & Outcomes News, 703, 2.
U.S Government Publishing Office: Budget of the United States of America. (2016). Web.