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The following article was published in our article directory on November 4, 2010.
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Republicans Pushing to Reduce the Deficit

Article Category: Business

Author Name: xia zihui

Republican held in 2 mid-term elections to obtain victory, won the House majority party status. Analysts believe that the White House after the Republican Party will promote the reduction of government deficits, the Obama administration will not be as in the past to focus on health insurance reform and other large-scale reform agenda.

Republicans argue that the deficit reduction

This was mainly due to the Democratic Party lost the high unemployment rate. U.S. unemployment rate in the past 17 months has been higher than 9% in August this year, up 9.6% national unemployment rate. Employment to the stylish mid-term election was not improved, so many voters are disappointed about Obama and the Democratic Party.

Republican Party Democratic Party during the campaign to seize some of the controversial policy a big issue, access to a large number of voters. Evening celebrating the victory in 2 speech, expected to become the next Speaker of the House Republican leader John Boehner said the House, he promised the Republican in the White House, the Government will promote the reduction of the deficit.

U.S. Presidential Commission on December 1 will be to deal with as of September 30 fiscal year budget deficit of 1.3 trillion recommendations. Because voters are worried about the expansion rate of the U.S. budget deficit, the deficit will certainly be a cause for concern again. Republicans claim the election to cut spending and oppose tax increases, analysts expect the Republicans to solve the future might take federal funds to support the motion, including the health care reform plan and cut retirement benefits.

House Republicans won majority status, will have an impact on the tax cuts. Former U.S. President George W. Bush tax cuts implemented in 2010 expire at the end, the current term of Parliament will also be the end of 12. Republicans may be in early 2011 after the new Congress to work to restore these policies.

Nomura Securities released a report that was reconvened in November, Congress will face a long list of problems, the most important federal income tax laws Code of impending change. Current law requires all labor income, capital gains, dividends, the marginal tax rate back to 2003 years ago. So far, Democrats have been following the President's initiative, to find ways to jointly declare only income of less than $ 250,000 of the crowd to extend the current tax rate; but because the president was reduced to obtain the support of a growing number of Democrats have expressed their willingness and Republicans in calling for extension of the current tax rate to all taxpayers.

Hoped to find "common ground"

3 The White House said that President Obama to the Republican leader said he hoped the two parties to find common ground after the election. The White House said in a statement, Obama is expected to take over the House of Representatives Speaker John Boehner on the phone. Obama said, "He look forward to cooperation, and Republicans find common ground and promote the country forward, or do something for the American people."

Boehner's Office said in a statement: "Bona has been honest with the past and the president, Boehner said that the future he will continue to get along with the President this way. They discussed the cooperation will focus on the primary task of the American people, and embracing that This is to create jobs and cut spending. "

Barack Obama on Tuesday told voters that Republicans win the White House to prevent the policy to consolidate the results achieved over the past two years. Obama said in a radio interview, unemployment and education is still the number one crucial task of the White House. In the past two years the Government to do a lot of things, mid-term elections will be the Americans decide whether to continue the current reform. Obama acknowledged that the slow pace of job growth, he also said policy makers need to begin to create new employment opportunities.

Analysts pointed out that Obama had launched a series of economic stimulus plan, could slow the U.S. economy as moderate growth into the short-term energy, and encourage enterprises to increase in manpower and change aspects of weak economic growth trajectory had little effect. U.S. economy is once again the possibility of falling into recession, but the effect of economic stimulus measures far less than expected, the current Government has to get out of the road, so that companies and markets to promote economic recovery.

Former Federal Reserve Chairman Alan Greenspan recently said there is evidence that high fiscal deficit now, and this capital investment while crowding out. He said the U.S. government to take immediate measures to address the budget deficit, and this is a priority.

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