National Budget Simulation Assignment

Attached is the NAT budget that I have balanced to the number that the prof wanted. Please validate the answers and provide guidance on other ideas to answer them. Please see the attachments.

National Budget Simulation Worksheet

1. How will the program cuts that you made affect specific groups (the elderly, students, environmentalists, savers, the poor, foreign aid recipients, producers, etc.)

The budget cuts I made would affect everyone. When a program has to decrease their ability to serve the people, all will feel the effect from the lack of service.

2. What programs did you choose to cut? Why did you choose those programs over others?

All programs, with the exception of Community and regional development, were cut by 2.5% and Income security was decreased by 5%. Spreading the cuts in the majority of the programs would distribute the impact of the cuts.

3. Would other cuts have had less impact on people’s lives? Which budget cuts had the largest impact on reducing the deficit?

Reducing the General Government program would have less impact on people’s lives. Limiting salaries, expenses of Congressional offices, and reducing the force of the Internal Revenue would not affect the everyday citizen.

By decreasing the Energy program, the cost of utilities would increase thus causing one’s personal budget to decrease.

4. Which decisions might be perceived as politically motivated?

The Health program and the energy program is debated by presidential candidate before each election. The health program includes public assistance for needy families. This is a hot topic because a candidate does not want to appear insensitive to the poor. Energy is a necessity to businesses as well as citizens and when discussing reducing the budget in this area, people are directly affected by the rising cost of utilities, gasoline, and cost of food.

5. What are the tradeoffs of preserving some programs while protecting others?

Preserving the programs such as Administration of Justice, General Government, and International affairs would have less impact on human lives. Protecting programs like the Agriculture, Energy, and Health by slightly reducing their budget would allow humans to maintain their established way of life with little sacrifice.

6. How do your decisions result in the marginal benefit to society outweighing the marginal cost to society?

?? check to see if this is accurate –Keeping a lower deficit of the National Budget would benefit Americans as interest rates would remain stable and allow new businesses to grow.

7. If you had the opportunity to raise taxes rather than cut programs, which policy would you choose?

I would cut programs and not raise taxes. Reducing the budget on specific programs would affect a smaller group of people. Increasing taxes would affect all taxpayers and ultimately affect businesses, as people would not have the revenue to buy new appliances, cars, etc.

I would like to raise taxes, but this policy is more likely to target high class people and might raise little taxes from middle class, but it is unreasonable to raise tax from lower class. The reason is that the higher class people already have numerous money and they cannot spend all of them in their lifetime. However, government needs to promise them something. For example, the government should have a plan for recovering of its economy and they need to reduce taxes after certain years.

Total Spending By Function Function National Defense International Affairs General Science, Space, and Technology Energy Natural Resources and Enviornment Agriculture Commerce and Housing Credit Transportation Community and Regional Development Education, Employment, Social Services Health Medicare Income Security Social Security Veterans Benefity and Services Administraion of Justice General Government Net Interest Allowances Undistributed Offsetting Receipts Total Spending 2017 % Change $598.7 +20% $46.3 -2.5% $30.4 $3.9 $37.9 -2.5% $18.9 $-26.8 NO CHANGE $93.6 2.5% $24.9 NO CHANGE $144.0 2.5% $533.1 $597.3 NO CHANGE 🙂 56% $944.9 NO CHANGE $1765 $58.0 2.5% New $718.4 $45.1 $28.9 $3.8 $37.0 $18.4 $-26.8 $913 $24.9 $140.4 $5198 $597.3 $478.3 $944.9 $172.1 $56.6 $23.3 $262.6 $262.6 $0.0 $-90.0 $3,981.6 NO CHANGE ) NO CHANGE NO CHANGE 🙂 $0.0 $-90.0 $4,046.2 Total Revenue By Source Source Individual Income Taxes Corporate Income Taxes Social Insurance and Retirement Receipts Excise Taxes Estate and Gift Taxes Customs Duties Miscellaneous Receipts Total Revenues 2017 $1587.1 $297.0 $11619 $83.8 $22.8 $34.6 $129.0 $3,316.2 Total Revenue By Source Total Revenues Total Spending Current Budget Deficit 2017 $3,316.2 $3,981.6 $-665.4 New Totals $3,316.2 $4,046.2 New Deficit: $-730.0.