Question

deral government budget?(1 point)

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.

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

Answer 1

Answer: The second option.

Reason: Raising individual and corporate income taxes increases revenue while reducing employee numbers and cutting Social Security and defense spending lowers outlays — together this most clearly reduces the federal budget deficit / net government spending.