In January, it also cautioned that high inflation and the country's wide current-account deficit would constrain future rate cuts.
There are many reasons why the bond market is failing to send the interest rate signals deficit hawks expect.
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Reducing the budget deficit would increase the rate of growth in the economy, increase corporate profits, buttress the stock market.
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Mr Osborne said the Conservatives would set out further details of how they would cut Britain's deficit at a faster rate than Labour before the general election, adding that they would place more emphasis on spending cuts than tax rises.
How would shifting to a 20% capital income tax rate affect the deficit?
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Five years ago Russia had a big budget deficit, a fixed exchange rate and a lot of high-coupon debt.
The interest rate on the deficit is negative and thus reducing the deficit will cost the US government forgone interest payments.
These kinds of meetings are likely to become increasingly common in the years ahead as the federal government seeks to pare a budget deficit currently running at the rate of about a billion dollars every six hours.
It was not tax cuts or even spending increases that caused most of the deficit, but the appallingly low rate of economic growth over the past 10 years.
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In spite of what they believe is an obvious connection between the currency exchange rate and the trade deficit with China, the empirical evidence does not support such a connection.
Until then, piecemeal fixes by courts or legislatures would be like trying to fix a massive multiple generational government budget deficit by tweaking a little tax rate here, a spending program there.
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The GOP opposition to any kind of tax rate increase has stalled deficit negotiations for two years and led to unusual political drama, such as McConnell recently filibustering a proposal he introduced and Thursday night's rebuff by House Republicans of the alternative tax plan pushed by Boehner, their leader.
Instead of reduction, the deficit actually grew at double the expected rate for 2012.
Besides, still-elevated consumer inflation and India's widening trade deficit could weaken the case for a rate cut in June.
If the US government collects taxes and uses those taxes to reduce the deficit it is entering into an interest rate swap.
And as the President promised, millionaires and billionaires will also begin doing more to help pay down the deficit through a combination of permanent tax rate increases and reduced tax benefits.
So I think this is a long process that will involve stakeholders at all levels with both political parties weighing in on their ideas about how we meet the goal of reforming the way corporate taxes are done, lowering that rate, but keeping it deficit neutral.
As with an external deficit, adjustment to a related internal deficit is ultimately the same under any exchange rate regime.
Accordingly, the first priority for anyone concerned about the federal deficit and debt is to get our growth rate up.
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Similarly, the governor repeated his vow that his tax rate cuts would not add to the deficit.
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Some numbers, such as the low saving rate and the colossal current-account deficit, suggest that the economy's course is unsustainable.
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Mr Obama proposes to cut the deficit by returning the top marginal income-tax rate to the 39.6% level of the late 1990s.
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Instead, his legacy will linger in the shape of the biggest economic imbalances in American history: a negative household saving rate and a record current-account deficit (see chart 1).
Irrelevant, Mr Elmendorf suggested on his own blog on March 23rd: the level of GDP matters more than its growth rate in determining the level of the deficit and on that front the CBO is more optimistic than the private sector.
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Rate cuts could potentially widen the current account deficit by encouraging consumption and boosting demand for imported goods.
The tax is aimed at correcting a budget deficit in the island which is also introducing a zero rate corporation tax.
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Federal debt does not decline in this scenario because the deficit, annually, remains higher than the GDP growth rate.
Deficit spending because the economy cannot grow at any meaningful rate, until and unless, the consumer spends more than they earn.
Because the government is a major provider of health care, slowing the growth rate of health care costs would lower the deficit and thus raise public saving.
Those of us over age 50 remember that the outbreak of inflation in the 1970s led to record high interest rates and a wrenching recession that saw a four percentage point increase in the unemployment rate and a tripling of the federal budget deficit between 1979 and 1982.
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