Tag fiscal responsibility act 2007

The Fiscal Responsibility Act of 2007 (FRA) was a law passed in the United States to address the growing national debt and promote fiscal responsibility. The law was signed by President George W. Bush on February 8, 2007.

The main provisions of the Fiscal Responsibility Act of 2007 were:

  1. Debt Reduction: The law required the President to submit a budget to Congress that would reduce the national debt by at least 5% of the previous year's budget deficit.
  2. Budget Process Reforms: The law changed the budget process to require more transparency and accountability. It established a new budget committee in the House of Representatives and required the Congressional Budget Office (CBO) to provide more detailed budget projections.
  3. Spending Caps: The law established spending caps for discretionary spending, which limited the amount of money that could be spent on certain programs.
  4. Tax Reforms: The law made several tax reforms, including the elimination of the estate tax and the reduction of the capital gains tax.
  5. Budget Enforcement: The law established a new budget enforcement mechanism, known as the "pay-as-you-go" (PAYGO) system. This system required that any new spending or tax cuts be offset by reductions in other areas of the budget or by revenue increases.

The Fiscal Responsibility Act of 2007 was intended to promote fiscal responsibility and reduce the national debt. However, the law was criticized for not going far enough to address the growing national debt and for including tax cuts that were not fully offset by spending reductions.

Some of the key provisions of the Fiscal Responsibility Act of 2007 were:

Overall, the Fiscal Responsibility Act of 2007 was an attempt to promote fiscal responsibility and reduce the national debt, but its effectiveness was limited by the lack of significant spending reductions and the inclusion of tax cuts that were not fully offset by spending reductions.