Yesterday's Proposed House Vote on PNTR with
rescheduled for Wednesday
today's New York Times article and analysis on
China Trade Bill
- In the
were deficits ahead as far as the eye could
of cutting the deficits, Congress passed the
ill-considered Gramm Rudman deficit reduction
that failed, Congress tried two schemes to change the
government to reduce the defict:
balanced budget amendment
line-item veto was defended in this
- No one
wanted to raise taxes and cut spending to do
broke his 1988 pledge of "no new taxes" and raised
them in 1990, producing a revolt within his party
and perhaps leading to his defeat.
raised taxes in 1993, but only by the barest of
margins in both the House and the
- The great
problem in controlling spending lies in the
uncontrollables, which account for 67% of the
on the federal debt.
security, medicare, and other mandatory
Taxing and Spending Policies
- Are taxes
too high in America--how would you answer that
with what?--against time?
with what?--against other countries?
- Tax policy
has three purposes: to meet budgetary outlays, to make
the tax burden more equitable, or to control the
- The tax
reform bill passed in 1986 represented one of the more
sweeping changes in tax history.
opinion studies show that in 1984 only a small
minority of the American public considered the federal
income tax system a major economic problem.
- The tax
burden has increased over time in the United States
but is still low compared to the tax rate of major
industrialized democratic nations.
- But in
seeking electoral advantage, politicians have led
Americans to believe that taxes are too high.
- How have
government spending and tax policies affected economic
inequality in America?
- The highly
unequal distribution of wealth in American society can be
understood from the perspective of two models of
argue that tax and spending policies are dominated by
pluralist politics which favor well funded and well
organized interest groups.
opinion studies show that Americans are unlikely to
seek redistribution of income through the tax system
as prescribed by the majoritarian principles of