Congress is increasing spending on defense and other items this year. US Senator Mike Rounds says increased military spending is needed to make up for past budget cuts. Rounds says a deal made with Democrats to approve those military spending increases lead to spending increases in other discretionary areas of the budget.
“The combination of those two will add to more money to the national debt over what it would have been if we would have kept to the budget control act. We will still have to live with the proposed budget that has been put forth earlier in the year. Are we different than what had been in the budget control act? Yes. Will we have to admit to having a higher deficit under the current rules? I think so. Long term though, does it help to spur our economy and bring more tax revenue in and also provide to stronger defense the answer is yes, and that’s the judgment call we’ve made this year,” says Rounds.
But some critics point to tax breaks for the wealthy in
the current budget. One set of tax kickbacks targets foreign real estate investors who will see a reduction on taxed income when they sell property. Rounds says more permanent tax breaks will also allow businesses, and ag producers a tax deduction up to a half million dollars for depreciation on farm equipment and vehicles.
The full budget measure includes thousands of pages. President Obama is expected to sign once it lands on his desk.