Government Deficit Spending Research Paper Example | Topics and Well Written Essays - 500 words

Government Deficit Spending - Research Paper Example Another way of reducing budget deficit is by increasing the number of people under taxation. In the current taxation system, couples earning more than $ 200, 000 per month are exempted from a certain level of taxation. Creating an equal taxation rate in all American citizens may significantly increase the rate at which the government contains revenue. An increase revenue collection will increase the GDP thus minimizing the debts incurred through borrowing. In an argument by Masters collecting enough tax from the citizens may reduce unsure the budget value is not exceeded. Additionally, the author points out that this may also increase government earning significantly even creating a surplus in the proposed budget. The congress also proposed creation of budget policies that may prevent the government from over spending from the budget proposed amount. Â  Over the years, the government has surpassed on expenditure amount as specified in the national budget. For this reason, the amount of debt has increased. However, the proposed budget policies may only be possible if the budget is made flexible and large enough to cater for emergencies and all the requirements over the annual calendar. Â   The white house and the congress disagree on the proposed changes considering the fact that the white house may be affected from the proposed expenditure cuts. However, the white house understands the need to reduce government expenditure. The proposed expenditure and revenue policies require the contribution by both parties.