Question

In 2005, the United States had a deficit of $318 billion and it has risen to $665 billion in 2017. To save this atrocious mess, the government must implement the known saying “to make money you have to earn money.”

            According to Aaron, there is money being lost in the government because agencies aren’t big enough to catch the issues. Government needs to hire more people to catch the small issues such as tax evasion, in 2015 over $500 billion in taxes were not collected. But, in 2014 the IRS lost 20% of their funding. With the job cuts, there are not enough people to catch those who are evading their taxes and more money is lost with each job that is cut. The same occurrence is happening in many other agencies such as in Medicare and job disability. The oversite is causing the deficit to grow and is snowballing to more jobs lost in the government and more oversites that is a vicious cycle. The same can be said from my final paper, the lack of eyes on the issue is causing the issue to grow. Many people think to cut spending as the solution, but that only leads to short term gain and to make back the money the government has spent longer term issues need to be put in place.

The U.S. does not have to eliminate social care options like Medicare, instead they need to focus on making Medicare more profitable and not a loss of millions due to oversite the workers don’t have time to deal with. The “not my job” mentality needs to stop in the government and it is time to put in effect long term solutions to help the economy.

Instead, the online deficit program, only created short term promises. Instead of putting in the work each president cuts money for the places that really need it and hurts the U.S. as a result.

discussion board

Answer 1

This case explains how competent govt. machinery is revenue department is leading to less collection of revenue. This leads to increased fiscal deficit as govt. earnings are less than its spending. As less money is collected govt. comes under pressure to reduce spending on healthcare and other welfare measures. It also does rethinking about tax cuts given to business people.

All these factors lead to vicious cycle in which less revenue leads to less spending and tax cuts and cut on welfare measures. US public welfare in all would be compromised in this case.

US policy makers hence need to focus on making collection effective with minimum loopholes and hiring experts to catch tax evaders and everything will start falling in place as far as govt. budgeting is concerned.

However, it needs to be considered that this machinery also needs money and returns are later than expenses. Hence careful analysis needs to be done before implementing this.