America's National Debt:
Budget Deficit - $1.3 Trillion for 2011
On January 31st, 2010, President Barack Obama sends to congress $3.8 trillion budget for the coming fiscal year. The national debt is more than $12 trillion dollars and continuous to grow at an alarming rate. By the end of 2020, the debt is projected to be more than $24 trillion, or double. With growing debt and expected increase in interest rates as the economic recovery strengthens, interest payments on the debt are poised to skyrocket. At a same time, two major political parties can't come to an agreement on how to handle the crisis and keep deficit
under control.
For the past decade, the national debt has been growing at an astonishing rate. Federal spending is out of control, and it has been for many decades. President's budget foresees a record budget deficit of $1.3 trillion in fiscal year 2011.
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Figure 1The good news is the budget plan calls for nearly $1 trillion in tax increases on upper-income families-largely through allowing Bush tax cuts to expire. Banks, bankers and multinational corporations would face new fees and levies. And oil companies would lose $36 billion in tax breaks. President Obama wants to extend tax cuts for middle- and lower-income Americans, but allow taxes to rise for wealthy families.
Even during the recession the budget can be balanced by doing few simple steps: 1) freeze, for some period of time, unneeded domestic and foreign spending; 2) increase taxes for wealthy families to 50% and increase taxes for families earning at least $250,000 to 25%; taxes for middle and lower class families should not exceed 18%; 3) decrease spending on defense by 40%; 4) eliminate corporative tax shelters (unless company going through the process of technological modernization). However, there is two major ways to...