Tax revenues rising federal deficit shrinking, which will shape the Congressional Budget debate returns from vacation next month. Legislator big question: If they renew, terminate or modify tens of billions of dollars of "sequestration" came into effect earlier this year to cut government spending?
June through tax increase over last year by 14% and this trend is expected to continue. July new number next week on September 12th and August. This is just three days after lawmakers threatened that some conservative government on October 1 shutdown or debt default endanger economies weeks after return.
As incomes rise, fight about?
Now, the government is considering more money, congressional Republicans more than ever against President Obama and his Democratic allies seek to raise taxes.
Ohio House of Representatives Speaker John Boehner said: "This year, the federal government will bring more revenue than any in our history a year." "We have a spending problem in Washington. To be addressed."
But Obama and the Democrats hope that some of the existing spending cuts, they said, they would not accept further reduced significantly - unless there is action to bring more revenue.
Senate Majority Leader Harry Reid said: "The Democrats are aware that we must do more to deficit reduction." "We believe in a balanced way to cut expenses for those who can afford it to pay more."
At the same time, some economists worry that currently rising income figures will reduce pressure to solve the nation's long-term debt problem.
"I do not think that political leaders think they have guns, their heads their way a few years ago, said:" George · H · W · Former economic adviser to President Bush, and now co-director of the Tax Policy Center, William Gale, . "There is a desire, in some parties declared" mission accomplished ", while ignoring the long-term deficit and other problems."
Several factors have led to the increase in revenue. The U.S. Congress to increase the tax rate of high-income households in January. The Congressional Budget Office said that some of the possible tax increases, cashing in investment, improve capital gains tax payers. Congress also made a temporary payroll tax cuts expire at the end of 2012, increasing social security taxes.
CBO also said that personal income rose, increasing tax revenue, despite the economic growth has been sluggish.
To see how important the economy is the federal tax revenue, take a look at what happened in 2009 after the country into the worst since the Great Depression recession. Income tax revenue fell 20%, from the year before, corporate income tax revenues declined by 55%. Social security tax revenue, the first decline since 1946.
Four consecutive years exceeded $ 1 trillion, the budget deficit is expected to drop to 642 one billion U.S. dollars in the budget year ending in September, according to the Congressional Budget Office. In the past few years, developed a combination of spending cuts higher tax revenue and reduce government borrowing.
View the gallery. "
File - July 31 this year, 2013 file photo, Nevada Senate Majority Leader Harry Reid in Congress speech ...
Under current law, the budget office projects the federal deficit will shrink further in the coming years even began to grow again in the end of the decade. But with nearly $ 17 trillion national debt, long-term financial problem is not completely solved, Gail said.
"This is kind of like someone carrying an extra 15 pounds around their waist," he said. "In the long run, this hurt your health, wear you out, reducing the flow."
Two potential budget showdown this fall, Congress is moving towards, the funds for government operations at the end of September, the United States has reached its borrowing authority limit, and later in the fall.
Republican spending cuts required in exchange for the debt ceiling increase, which would require the U.S. obligation to prevent an unprecedented default. But Obama said he would not raise the debt ceiling negotiations.
That debate may provide an opportunity to solve the nation's long-term finances. But it does not seem the kind of "grand bargain" deficit reduction program, Obama and Boehner in 2011 trying to negotiate is much appetite in Washington. The package will cut spending and increase revenue, but Obama and Boehner have never been able to agree on the details.
If it is not a grand bargain, a "little" bargaining evolved in the following 17 months.
Republican government debt default would trigger force Democrats and Barack Obama in August 2011 agreed to $ 2.1 trillion over the next decade to cut government spending, including $ 1.2 trillion in automatic spending cuts - also taken from the military and domestic programs - beginning this year March seriously.
Democrats and some moderate Republicans now want to undo these automatic cuts. Most Republicans want to make them from defense to domestic programs to reduce but to switch.
Two months later, his re-election, then this past January, Obama finally won the tax increase, nearly 620 one billion U.S. dollars over 10 years, most of which annual income of $ 400,000 or more people.
This year's projected deficit of less than half of it was from 2009 to 2011, the economist Gail question of whether there is an overwhelming desire to do more in terms of taxes or spending.
, "Gail said:" I feel like it is not as bad as it was in 2009, people are good, so the deal with the debt thing is a fatigue.
 



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