Cutting Down Our Deficits

  In the past, the late 1990s was never a time when federal governments ran big surpluses. It was not something we as a country would worry about. As stated in the New York Times,

As late as 1998, the Congressional Budget Office was predicting a deficit for 1999. In fact, Washington ran its biggest surplus in five decades.

Previous republican presidents in the past have tried to resolve the debt problem by raising taxes in 1980. It was expected that the increased tax rate should be able to give us more money to pay off the deficits, however it proved to be inaccurate. 

Today’s looming deficits are almost surely too large to be closed exclusively with growth. The baby boom generation is too big, and the rise in Medicare costs continues to be too steep. Yet growth could still make an enormous difference. 

There are two ways to go about this issue. One of them being not engaging each other in a over using deficit plans by raising and spending money quickly. Second reason being we should actually think about spending more in the future. The plan was to use a one year pay roll tax. The big question is, could this possibly work? I believe it is worth a shot, and I recommend saving back more money.