National Debt and the Federal Budget Quick Check

Question

5 of 55 of 5 Items

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

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

Answer 1

To achieve a surplus in the federal government budget, the most effective actions would involve increasing tax revenues while managing expenditures. Of the provided options, the one that focuses on increasing tax rates while also considering cuts in spending is the most likely to lead to a budget surplus.

Therefore, the response that aligns best with creating a surplus 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.

This option emphasizes raising revenues through increased tax rates while also reducing government expenditures, which are both key elements for achieving a budget surplus.