Economic Effects of Policies Contributing to Fiscal Tightening in 2013
Significant tax increases and spending cuts are slated to take effect in January 2013, sharply reducing the federal budget deficit and causing, by CBO's estimates,
a decline in economic output and an increase in unemployment. What would be the economic effects of eliminating various components of that fiscal tightening or what some term the fiscal cliff?
CBO estimates that enactment of the President's proposals would:
1. ) Decrease the total deficits in 2013 to $977 billion (or 6.1 percent of GDP).
2. ) Increase total deficits between 2013 and 2022 by $6.4 trillion, or $3.5 trillion more than the cumulative deficit in CBO's baseline.
Effective Marginal Tax Rates for Low- and Moderate-Income Workers
Effective marginal tax rates among low- and moderate-income workers are about 30 percent, on average, with about one-third of that rate stemming from the federal income tax, more than a third from federal payroll taxes, and the remainder from state income taxes and the phaseout of SNAP benefits (formerly known as food stamps
Budget and Economic Outlook: Fiscal Years 2012 to 2022
CBO expects the economic recovery to continue at a modest pace for the remainder of calendar year 2012, with real (inflation-adjusted) GDP growing at an annual rate of about 2¼ percent in the second half of the year, compared with a rate of about 1¾ percent in the first hafl...
the rate of inflation in consumer prices will remain low.
If automatic deficit-reduction procedures were triggered, appropriations for defense would be 16 percent lower by 2021 than they would be if they kept up with inflation; funding for nondefense activities would be 15 percent lower.
In fiscal year 2011, the federal government provided $607 billion in grants to state and local governments. Those funds accounted for 17 percent of federal outlays, 4 percent of gross domestic product (GDP), and a quarter of spending by state and local governments that year.
Macroeconomic Effects of Alternative Budgetary Paths
Federal debt held by the public now exceeds 70 percent of the nation's annual output (gross domestic product, or GDP) and stands at a higher percentage than in any year since 1950. Under an assumption whereby current laws generally remain unchanged, federal debt will be 77 percent of GDP in 2023, CBO projects.
When you register to vote,your voter registrations are linked to your residential address.When registered voters move,
they are supposed to update their registration records with election officials before voting.
Under federal law, if you move within 30 days of a presidential election, you are allowed to vote for President and Vice President in your former state of residence, either in person or by absentee ballot.
Voting is the essence of democracy.Voting in the United States is voluntary. Some people vote in person at the polls, while others vote by mail days or weeks before the actual election date. Regardless of how you do it,
it's important that all U.S. citizens who qualify participate in the democratic process of electing public officials.
To vote in federal elections you need to be a U.S. citizen and be at least 18 years old, although some states allow 17-year-olds to vote. In fact, the states establish voting rules, including the requirements to register to vote, registration deadlines, and where to send your voting form. You may be able to register at a variety of places, including state and local voter registration offices, the Department of Motor Vehicles, and public assistance agencies. You might also be able to register by mail using the National Mail Voter Registration Form, but not all states accept it. Check with your state election office to learn how to register in your state.
Voter identification requirements also vary by state. Therefore, it's
important to figure out the documents you might need to show before going to your polling place on Election day.
Some states require voters to show proof of identity before voting,
such as driver's licenses, passports or military papers. Your state election office can tell you what documents are required in your state.
S. 1249:A bill to rename the Office to Monitor and Combat Trafficking of the Department of State the Bureau to Monitor and Combat Trafficking in Persons and to provide for an Assistant Secretary to head such Bureau, and for other purposes [113th]
S. 744:Border Security, Economic Opportunity, and Immigration Modernization Act [113th]
H.R. 3590:Patient Protection and Affordable Care Act [111th]
H.R. 1900:Natural Gas Pipeline Permitting Reform Act [113th]
H.R. 1960:National Defense Authorization Act for Fiscal Year 2014 [113th]
Members of Congress Benefits
The current salary for all senators and members is $174,000. The salary for the speaker is $223,500 and the salary for the majority and minority leaders is $193,400.
Members of Congress are covered by the same retirement plans as other federal employees, the Civil Service Retirement System (CSRS) for those hired, or elected, before 1984, and the Federal Employees Retirement System (FERS) for those whose service began in 1984 or later. There are some differences in retirement age eligibility, years of service required, and contributions. Members elected after 1984 also participate in Social Security.
As of October 1, 2007, the average annual pension for former members under the CSRS plan was $63,696; for those under the FERS plan, $36,732.
Income Tax = Social security tax + Medicare tax + Federal tax + State tax
2012 Social Security tax rate and maximum taxable earnings
For 2012, the maximum taxable earnings amount for Social Security (OASDI) taxes is $110,100. There is no limitation on taxable earnings for Medicare's Hospital Insurance (HI) taxes.
The Social Security tax rate for employees is 4.2 percent through the end of the year.
The Social Security tax rate for employers is 6.2 percent.
The Medicare tax rate is 1.45 percent for employees and employers(2.9% total).
There is no wage base limit for Medicare tax; all covered wages are subject to Medicare tax.
The Social Security tax rate for self-employed is 10.4 percent through the end of the year. The Medicare tax rate is 2.9 percent for self-employed.
Credits & Deductions
There are a variety of credits and deductions for individual and business taxpayers.
The Earned Income Tax Credit, and the Child and Dependent Care Credit help millions of families every year. There are also a number of credits for small and large businesses. You may have taken deductions when you prepared your annual tax return.
In addition to the standard deduction for individuals, common deductions include home mortgage interest,
state and local tax, and charitable contributions. Many business expenses are deductible as well.
Personal income increased $85.8 billion, or 0.6 percent, and disposable personal income (DPI) increased $74.7 billion, or 0.6 percent, in November, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $41.3 billion, or 0.4 percent. In October, personal income increased $7.5 billion, or 0.1 percent, DPI increased $6.4 billion, or 0.1 percent, and PCE decreased $6.6 billion, or 0.1 percent, based on revised estimates. Full Text Fri, 21 Dec 2012 08:30:00 EST