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 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.
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.

Answer 1

To achieve a surplus in the federal government budget, the best 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 focuses on increasing revenue through higher tax rates while also reducing expenditures, which are both crucial for generating a budget surplus. By increasing individual and corporate income taxes, the government can collect more revenue, and by decreasing spending, it can reduce the overall budget deficit or create a surplus. The other options either reduce revenue or do not sufficiently cut spending.