Actions by the Federal Government That Decrease the Progressiveness of the Tax

question 87

Multiple Choice

Actions by the Federal government that decrease the progressiveness of the tax system:

• A)decrease the amount of government spending.
• B)increase the effects of automatic stabilizers.
• C)decrease the effects of automatic stabilizers.
• D)increase the amount of taxation.

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Definitions:

Fiscal Year

A 12-month period used for accounting purposes and preparing financial statements that may not align with the calendar year.

Fiscal Year

A one-year period used by governments and businesses for accounting and budget purposes, which may not coincide with the calendar year.

Budget Deficit

The financial situation in which expenditures exceed revenue over a specific period, leading to a shortfall that must be financed through borrowing.

Federal Outlays

Government expenditures, including spending on goods and services, transfer payments, and interest on debt.