What set of actions are most likely to result in a surplus in the federal government budget?(1 point)
Responses
Increase tax rates for individual income and corporate income taxes. Decrease the number of employees as well as cuts in spending for social security and defense.
Increase tax rates for individual income and corporate income taxes. Decrease the number of employees as well as cuts in spending for social security and defense.
Decrease tax rates for individual income and payroll taxes and make cuts to federal government subsidies for farmers and renewable energy producers.
Decrease tax rates for individual income and payroll taxes and make cuts to federal government subsidies for farmers and renewable energy producers.
Increase tax rates for payroll and corporate income taxes. Increase federal government investment in infrastructure and education.
Increase tax rates for payroll and corporate income taxes. Increase federal government investment in infrastructure and education.
Decrease tax rates for corporate income taxes but also raise tax rates for individual income and payroll taxes.
Whats the right answer
The set of actions most likely to result in a surplus in the federal government budget is:
Decrease tax rates for individual income and payroll taxes and make cuts to federal government subsidies for farmers and renewable energy producers.
The most likely set of actions to result in a surplus in the federal government budget is:
Decrease tax rates for individual income and payroll taxes and make cuts to federal government subsidies for farmers and renewable energy producers.
The most likely set of actions to result in a surplus in the federal government budget is to decrease tax rates for individual income and payroll taxes and make cuts to federal government subsidies for farmers and renewable energy producers.
To arrive at this answer, you need to consider the impact of each set of actions on the federal government's revenue and spending.
Option 1: Increasing tax rates for individual income and corporate income taxes and decreasing the number of employees, as well as making cuts in spending for social security and defense, may help reduce spending but could also dampen economic growth, resulting in a potential decrease in revenue. Therefore, this option is less likely to result in a surplus.
Option 3: Increasing tax rates for payroll and corporate income taxes and increasing federal government investment in infrastructure and education may stimulate economic growth and potentially increase revenue. However, the increase in investment may also lead to increased spending, making it less likely to result in a surplus.
Option 4: Decreasing tax rates for corporate income taxes but raising tax rates for individual income and payroll taxes could potentially lead to a decrease in revenue. It may encourage businesses to expand and create jobs, but the increase in taxes for individuals and payroll may outweigh the benefits, making it less likely to result in a surplus.
Therefore, the most likely set of actions to result in a surplus is Option 2: Decreasing tax rates for individual income and payroll taxes and making cuts to federal government subsidies for farmers and renewable energy producers. This combination of reducing taxes and cutting subsidies aims to decrease spending while potentially stimulating economic growth, resulting in an increase in revenue and a potential surplus in the federal government budget.