budget deficit

Most people pay their taxes voluntarily, but with at least one type of tax, millions of Americans break the law every year -- and many probably never realize it. Now, states in desperate need of more revenue are trying to do something about that.

Republicans pushing for spending cuts in the 2011 federal budget may be ready to shut the government down to get their way. But is anyone ready to do what it would take to really make a dent in the federal budget: raise taxes on the rich and close corporate tax loopholes?

The Republicans are winning this year's budget battle: Discretionary spending will decrease. But this is hardly the time for the GOP to take a victory lap: Next, the GOP will have to lower unemployment and improve the average American's daily life -- two areas where the party has historically come up short.

Right now, everything is coming up roses for the Republican Party: It's won the first round of the budget battle, and if the GOP%u2019s momentum continues, the new federal budget will reflect its spending-reduction priorities, not the Democrats'. Even so, if the two parties can agree on a budget, the greater danger, a potentially market-impacting government shutdown, will have been averted.

Despite all the headwinds blowing against it -- and they're fierce -- the U.S. dollar has been holding its own against the world's major currencies. And if the U.S. recovery remains on track, the greenback has good odds of actually strengthening in 2011.

In its latest report, the IMF applauds national policymakers for stabilizing credit markets and putting the global economy on a recovery track. However, thorny problems remain -- including how to prevent overheating in emerging markets, and how to cut the U.S. deficit while lowering its unemployment rate.

Without a doubt, this country's debt overhang needs to be chopped considerably. But does a large national debt doom a nation to economic ruin? Only if you believe that countries like Germany, France, and Japan are economic basket cases, too.

In his State of the Union address, President Obama didn't shy away from tackling the ongoing questions about the health care reform law head on. And though he opened with a joke, he made it clear that while he's serious about repairing any flaws in the law, repeal is not an option.

The Tea Party says everything is on the table regarding its goal to cut federal spending and balance the budget -- including defense spending. If the political faction succeeds in cutting military spending, not only would the U.S. economy benefit, national security could well be strengthened.

It took about 10 years of decisions for the federal budget to get more than a trillion dollars out of whack, and it's going to take at least five years to balance it again. The only way to do it is piece-by-piece, with equal sacrifices from both Republicans and Democrats.