Suppose That in 2020 the Average Citizen's Federal Tax Bill

question 53

Multiple Choice

Suppose that in 2020 the average citizen's federal tax bill is $9,372,and total federal spending is $10,824 per person.In 2020,the federal government will have

• A)a budget surplus.
• B)a budget deficit.
• C)horizontal equity.
• D)vertical equity.

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Definitions:

Original Cost

The amount initially paid for an asset, not accounting for depreciation, inflation, or market value adjustments.

Short-Term Note

A debt instrument with a maturity of less than one year, used by companies to finance short-term obligations.

Legal Fees

Charges incurred for legal services provided by attorneys or law firms.

Delinquent Taxes

Taxes that have not been paid by the due date, often incurring penalties and interest.