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 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.

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.

Answer 1

To achieve a surplus in the federal government budget, the most effective set of actions would be:

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 involves increasing revenue through higher tax rates while simultaneously reducing expenditures by cutting government employee numbers and reducing spending on major programs. Together, these actions are likely to result in a surplus by increasing income while decreasing outgoing expenses.