As the US House struggles to balance the national budget, deep slashes have been made and several programs have been eliminated. The poor, indigent, elderly and farmers will all feel the effects of the budget cuts. More than $2.7 billion has been cut from these programs that help farmers to get tax relief. In addition, free food programs for the poor have been removed from the federal budget. The renewable energy industry will also be negatively impacted.
Farmers that make ethanol, a corn derivative, will no longer be eligible to receive the $.45 tax credit per gallon of fuel. Several states had been making use of the tax credit to subsidize the costs associated with growing corn crops. Battered womens shelters, soup kitchens and other agencies that aid the poor will need to depend on the charity of residents in order to keep their programs running. A $30 million budget cut in this area will cause several charities to close.
While the measure was passed by 73-27, several politicians were angered by the decision. Some states that are struggling financially will be unable support programs that were designed to benefit the poor. The US budget is still not balanced and the national deficit is near its peak. If the US House is not able to find other areas in which to slash the budget, the government might not pay its debts. This would have a catastrophic effect on the international economy, but lawmakers will continue to work on this issue until a resolution is made.
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