Free trade: Free trade, a policy by which a government does not discriminate against imports or interfere with exports by applying tariffs (to imports) or subsidies (to exports). a
Deficit Reduction Act 2005 Law and Legal Definition. The Deficit Reduction Act of 2005 is a United States Act of Congress concerning the budget. It addresses deficit reductions ranging from education to housing and Medicare to Medicaid. It was signed into law by President Bush on February 8, 2006 after a closely divided Congress approved the legislation.
The rate of deficit reduction was 64 percent from fiscal 1993 to fiscal 1996, when the deficit fell from 3.9 percent of GDP to 1.4 percent. Similarly, the rate dropped 66 percent from fiscal 2004 to fiscal 2007, when the deficit went from 3.5 percent of GDP to 1.2 percent.