What set of actions are most likely to result in a surplus in the federal government budget?(1 point)

Question

Responses

Decrease tax rates for corporate income taxes but also raise tax rates for individual income and payroll taxes.
Decrease tax rates for corporate income taxes but also raise tax rates for individual income and payroll taxes.

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.

Answer 1

To achieve a surplus in the federal government budget, the most effective set of actions would typically involve increasing revenue while controlling or reducing expenditures.

Of the options provided:

1. 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.

This option increases tax revenue by raising tax rates and simultaneously reduces government expenditure through cuts in employment and spending on social security and defense. The combination of higher revenue and lower spending is likely to lead to a budget surplus.

In contrast, the other options either involve tax cuts or increased spending, which would likely not support the goal of achieving a surplus.

So, the best response to result in a surplus in the federal government budget is:

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.