Find the best solutions to your problems with the help of IDNLearn.com. Join our interactive Q&A community and access a wealth of reliable answers to your most pressing questions.
Sagot :
As a possible approach to eliminating the government budget deficit, increasing taxes for everyone would be a Fiscal deficit Policy. There are two ways they can reduce the deficit: either by raising taxes and/or boosting economic activity to increase revenue or by reducing spending on government-run programs to reduce spending.
What happens if there is an increase in the budget deficit?
Theoretically, a rise in the fiscal deficit might stimulate a sluggish economy by increasing consumer spending and investment opportunities by giving people more money. However, long-term deficits may be harmful to stability and economic growth. Over the previous ten years, the United States has regularly had a deficit.
Promoting economic growth is one of the best strategies to lower the budget deficit as a percentage of GDP. The government will generate more tax income without raising taxes if the economy expands. People pay more VAT, businesses pay more corporation tax (a tax on profits), and employees pay more income tax when the economy grows.
Learn more about The Budget deficit here:
https://brainly.com/question/10876388
#SPJ4
Thank you for using this platform to share and learn. Keep asking and answering. We appreciate every contribution you make. IDNLearn.com is committed to providing the best answers. Thank you for visiting, and see you next time for more solutions.
