ABSTRACT
One of the most controversial aspects of federal budgeting is the annual deficits the United States has accumulated, especially during the past two decades. These deficits have contributed significantly to the growth of the national debt. Budgets are used to implement both economic policy goals and specific program needs. This dual purpose of budgets undercuts deficit reduction. Sometimes the goal of stabilizing the economy by reducing deficits, interest paid, and debt may contradict allocation goals of increasing federal spending for desirable social and defense goals. The budget provides information to assess past presidential success by including data on the most recently completed fiscal year, and a revised estimate of the fiscal year still in progress. Taxes have been controversial and unpopular throughout the nation's history. Previous tax battles often pitted one group or political party against another. During the Civil War, two major changes introduced into tax policy were a progressive income tax and an inheritance tax.
