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The following principles guide AARP’s efforts to further budgetary decisions that reflect the needs of all members of society.
Taxation is the primary way governments fund essential programs and services. The following principles support this goal while also ensuring equity in how revenues are raised.
When economic conditions permit, states should accumulate budget reserves adequate to maintain services during recessions.
Deficit-reduction efforts should avoid cuts in programs that serve low- and moderate-income populations.
At the federal level, the two categories of budgetary expenditures are entitlement and discretionary spending.
Government budgets reflect the priorities of policymakers. They specify what programs and activities the government will support and how to raise the money needed to fund them.
Taxes play an essential role in the functioning of modern society. Their primary goal is to fund government operations. But their role goes well beyond that.
Efforts to reform entitlement spending should recognize the following factors:
Block grants and unfunded mandates are two government budgetary practices that can have significant implications for lower levels of government.