News Alert from The Wall Street Journal
President Barack Obama proposed a $3.8 trillion budget for fiscal 2011 that will add fuel to the debate over the size and scope of government with proposals for big increases in personal and business taxes, modest spending cuts and increased outlays for education, defense and jobs initiatives.
The Obama administration has focused in recent days on proposals to cap so-called discretionary spending, roughly 17% of the total budget, as part of a plan to start narrowing the record $1.6 trillion gap between proposed budget outlays and tax receipts. But the budget plan calls for nearly $1 trillion in tax increases on upper-income families -- largely by allowing Bush-era tax cuts to expire. Banks, bankers and multinational corporations would face new fees and levies. And oil companies would lose $39 billion in tax breaks.
Overall, Mr. Obama's budget plan would shrink the current deficit to $727 billion, or 4.2% of the gross domestic product, by 2013. But if annual deficits shrink, the total federal debt will keep growing. In all, the president's budget would add $8.5 trillion to the federal debt through 2020, pushing the debt as a percentage of GDP to 77%, up from 53%.
http://online.wsj.com/article/SB10001424052748704107204575038733246595218.html?mod=djemalertNEWS
GDP vs GNP
GDP can be contrasted with gross national product (GNP) or gross national income (GNI). The difference is that GDP defines its scope according to location, while GNP defines its scope according to ownership. GDP is product produced within a country's borders; GNP is product produced by enterprises owned by a country's citizens. The two would be the same if all of the productive enterprises in a country were owned by its own citizens, but foreign ownership makes GDP and GNP non-identical. Production within a country's borders, but by an enterprise owned by somebody outside the country, counts as part of its GDP but not its GNP; on the other hand, production by an enterprise located outside the country, but owned by one of its citizens, counts as part of its GNP but not its GDP.
To take the United States as an example, the U.S.'s GNP is the value of output produced by American-owned firms, regardless of where the firms are located.
Gross national income (GNI) equals GDI plus income receipts from the rest of the world minus income payments to the rest of the world.
In 1991, the United States switched from using GNP to using GDP as its primary measure of production.[18] The relationship between United States GDP and GNP is shown in table 1.7.5 of the National Income and Product Accounts[19] .
Year-over-year real GNP growth in the United States in 2007 was 3.2%.
President Barack Obama proposed a $3.8 trillion budget for fiscal 2011 that will add fuel to the debate over the size and scope of government with proposals for big increases in personal and business taxes, modest spending cuts and increased outlays for education, defense and jobs initiatives.
The Obama administration has focused in recent days on proposals to cap so-called discretionary spending, roughly 17% of the total budget, as part of a plan to start narrowing the record $1.6 trillion gap between proposed budget outlays and tax receipts. But the budget plan calls for nearly $1 trillion in tax increases on upper-income families -- largely by allowing Bush-era tax cuts to expire. Banks, bankers and multinational corporations would face new fees and levies. And oil companies would lose $39 billion in tax breaks.
Overall, Mr. Obama's budget plan would shrink the current deficit to $727 billion, or 4.2% of the gross domestic product, by 2013. But if annual deficits shrink, the total federal debt will keep growing. In all, the president's budget would add $8.5 trillion to the federal debt through 2020, pushing the debt as a percentage of GDP to 77%, up from 53%.
http://online.wsj.com/article/SB10001424052748704107204575038733246595218.html?mod=djemalertNEWS
GDP vs GNP
GDP can be contrasted with gross national product (GNP) or gross national income (GNI). The difference is that GDP defines its scope according to location, while GNP defines its scope according to ownership. GDP is product produced within a country's borders; GNP is product produced by enterprises owned by a country's citizens. The two would be the same if all of the productive enterprises in a country were owned by its own citizens, but foreign ownership makes GDP and GNP non-identical. Production within a country's borders, but by an enterprise owned by somebody outside the country, counts as part of its GDP but not its GNP; on the other hand, production by an enterprise located outside the country, but owned by one of its citizens, counts as part of its GNP but not its GDP.
To take the United States as an example, the U.S.'s GNP is the value of output produced by American-owned firms, regardless of where the firms are located.
Gross national income (GNI) equals GDI plus income receipts from the rest of the world minus income payments to the rest of the world.
In 1991, the United States switched from using GNP to using GDP as its primary measure of production.[18] The relationship between United States GDP and GNP is shown in table 1.7.5 of the National Income and Product Accounts[19] .
Year-over-year real GNP growth in the United States in 2007 was 3.2%.
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