Why Is It Unlikely That Tax Increases Will Be the Way

question 37

Multiple Choice

Why is it unlikely that tax increases will be the way to eliminate current U.S. federal budget deficits?

• A)Increasing every worker's taxes by the same amount could eliminate the deficit, but it is likely this action would be viewed as too burdensome for workers with modest incomes.
• B)The revenues generated by increasing taxes on the rich would only pay for a small portion of the federal budget deficit in any recent year.
• C)Since World War II, on average when taxes were increased by a dollar, federal government spending increased by that much and more.
• D)All of the above.

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