Fiscal Policy
Fiscal Policy The people of the United States are by the fiscal policies. Team C will address the how and why the U. S. budget deficits, budget surpluses, and debt affect different individuals and institutions. There is a wide array of individuals affected by fiscal policy, which include tax payers, future Social Security and Medicaid users. The unemployed individuals and University of Phoenix students will be affected by fiscal policy. The U.S. financial reputation, an exporter, and importer, and affects of the GDP will also be covered about the affects of the U.S. fiscal policy.
Effects on Tax Payers The U.S. budget deficits can affect tax payers in a negative aspect by increased taxes to offset the deficit. The budget deficit does impose interest costs on tax payers, meaning that the national savings totals are lower and this decreases the amount of private investing (Ackerman, 2004). This higher interest cost will have a direct effect on the trade deficit which will cause Americans to become even more dependent on exports for their consumer needs. The U.S. budget surpluses would affect tax payers in a positive aspect by refunding tax payers on overpayments. Another benefit from a surplus is that it will stimulate investing by offering lower interest rates, which would increase tax payers savings when filing taxes (Hall, 2012). The U.S. budget debt affects the tax payers. The U.S. government cannot sustain the economic level of owing more than they are receiving. The other option for shortening the debt is to limit spending by reducing benefits and programs. The interest rates may rise because of a decrease in the purchase of Treasury bonds from foreign investors (NDT, 2012).
Effects on future Social Security and Medicare user The United States Budget Deficit is only going to hurt the future Social Security and Medicare Users. Overspending will lead to no money in these accounts. The retirement age will continue to go up as long as there
Effects on Tax Payers The U.S. budget deficits can affect tax payers in a negative aspect by increased taxes to offset the deficit. The budget deficit does impose interest costs on tax payers, meaning that the national savings totals are lower and this decreases the amount of private investing (Ackerman, 2004). This higher interest cost will have a direct effect on the trade deficit which will cause Americans to become even more dependent on exports for their consumer needs. The U.S. budget surpluses would affect tax payers in a positive aspect by refunding tax payers on overpayments. Another benefit from a surplus is that it will stimulate investing by offering lower interest rates, which would increase tax payers savings when filing taxes (Hall, 2012). The U.S. budget debt affects the tax payers. The U.S. government cannot sustain the economic level of owing more than they are receiving. The other option for shortening the debt is to limit spending by reducing benefits and programs. The interest rates may rise because of a decrease in the purchase of Treasury bonds from foreign investors (NDT, 2012).
Effects on future Social Security and Medicare user The United States Budget Deficit is only going to hurt the future Social Security and Medicare Users. Overspending will lead to no money in these accounts. The retirement age will continue to go up as long as there
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