Budget deficit is defined as the difference between government spending and tax revenues. As President Clinton once stated, dealing with the budget deficit is simple "arithmetic". We need to cut government spending and increase tax revenues to lower the deficit. 1. If you are one of the policy makers determined to control the federal budget, which federal spending item(s) would you cut? 2. How would you change the tax policy to increase the tax revenue? Would you increase the income tax rate or decrease it to increase revenue (review the Laffer curve and comment on the relationship between the tax rate and and tax revenue)? How wou you change the payroll tax? Who should have the burden of tax? Please review the 2018 Trump tax law and Biden administrations tax proposals. Below are two short videos: One supports the tax cuts, the other opposes. Tax cuts will spark growth and employment (Laffer). Six things we'll regret about Trump tax cuts 3. What is the impact of Covid-19 on the budget deficit and national debt? Should we be worried about it?
Budget deficit is defined as the difference between government spending and tax revenues. As President Clinton once stated, dealing with the budget deficit is simple "arithmetic". We need to cut government spending and increase tax revenues to lower the deficit. 1. If you are one of the policy makers determined to control the federal budget, which federal spending item(s) would you cut? 2. How would you change the tax policy to increase the tax revenue? Would you increase the income tax rate or decrease it to increase revenue (review the Laffer curve and comment on the relationship between the tax rate and and tax revenue)? How wou you change the payroll tax? Who should have the burden of tax? Please review the 2018 Trump tax law and Biden administrations tax proposals. Below are two short videos: One supports the tax cuts, the other opposes. Tax cuts will spark growth and employment (Laffer). Six things we'll regret about Trump tax cuts 3. What is the impact of Covid-19 on the budget deficit and national debt? Should we be worried about it?
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter18: Debates In Macroeconomics Over The Role And Effects Of Government
Section18.10: Demand-side And Supply Side Views Of The Economy And Government Tools For The Changing Real Gdp
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Transcribed Image Text:Budget deficit is defined as the difference between government spending and tax revenues. As President Clinton once stated, dealing
with the budget deficit is simple "arithmetic". We need to cut government spending and increase tax revenues to lower the deficit.
1. If you are one of the policy makers determined to control the federal budget, which federal spending item(s) would you cut?
2. How would you change the tax policy to increase the tax revenue? Would you increase the income tax rate or decrease it to
increase revenue (review the Laffer curve and comment on the relationship between the tax rate and and tax revenue)? How would
you change the payroll tax? Who should have the burden of tax?
Please review the 2018 Trump tax law and Biden administrations tax proposals. Below are two short videos: One supports the tax
cuts, the other opposes.
Tax cuts will spark growth and employment (Laffer)
Six things we'll regret about Trump tax cuts
3. What is the impact of Covid-19 on the budget deficit and national debt? Should we be worried about it?
Please also see the links in this week's additional readings.
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