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If this is true, what is the automatice percentage rate increase each year and how can we ever reduce the size of Government?

2007-09-21 04:01:36 · 6 answers · asked by Anonymous in Business & Finance Taxes United States

6 answers

No it's not true, but considering we are in a state of constant inflation (it's still small rate of inflation, but it's still inflation), it's natural that prices/costs go up every year, so it's natural that the federal budget would go up every year.

2007-09-21 04:09:18 · answer #1 · answered by Anonymous · 2 0

There's not an automatic increase in the budget itself every year, but a large part of the budget is various entitlements that DO increase automatically with inflation, so it would be highly unlikely there would ever be a year without an increase in the total budget.

2007-09-21 14:03:56 · answer #2 · answered by Judy 7 · 0 0

No. It is not true. Congress votes each year on what size the budget will be. If Congress does not decide on a size, not only does it not automatically increase, it automatically decreases to almost zero, because no money can be spent except for a few things that are required by law (including, unfortunately, Congress's salaries).

2007-09-21 07:44:06 · answer #3 · answered by StephenWeinstein 7 · 1 0

Not automatically, no. Budgets have to get passed by Congress every year.

2007-09-21 07:17:20 · answer #4 · answered by Ken B 3 · 0 0

We cannot reduce the size of gov't. Think of our country as highly inefficient for example as of May 06' 1 penny cost about 1.2 cents to manufacture.

Why do we still use them?

2007-09-21 04:06:28 · answer #5 · answered by SCSU/AMA Junior 2 · 0 0

It is not automatic, but it is largely inevitable, both because of inflation and because "we" are always asking the government to do more for us, which of course costs more.
Did you ever hear of a constituent asking his Congressman to please provide less education, roads, parks, police and fire protection, etc?

2007-09-21 08:13:38 · answer #6 · answered by r_kav 4 · 0 0

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