To eliminate the deficit (and halt the growth of the net public debt), a politician suggests that "we should tax the rich." Suppose the politician defines "the rich" as people with annual taxable incomes exceeding $1 million per year. Given "the rich" rarely earn a combined taxable income exceeding $1 trillion, yet the federal deficit has regularly exceeded $1 trillion in recent years, which of the following must be trueA. The deficit cannot be eliminated just by taxing "the nch." B. I government spending is not reduced, taxes on the middle class must be increased in order to eliminate the deficit. C. To eliminate the deficit, government spending must be reduced. D. All of the above.

Question

Briley Bernard

Business

20 May, 12:40

To eliminate the deficit (and halt the growth of the net public debt), a politician suggests that "we should tax the rich." Suppose the politician defines "the rich" as people with annual taxable incomes exceeding $1 million per year. Given "the rich" rarely earn a combined taxable income exceeding $1 trillion, yet the federal deficit has regularly exceeded $1 trillion in recent years, which of the following must be trueA. The deficit cannot be eliminated just by taxing "the nch." B. I government spending is not reduced, taxes on the middle class must be increased in order to eliminate the deficit. C. To eliminate the deficit, government spending must be reduced. D. All of the above.

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Answers (1)

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Jaylen George · Answer 1

D. All of the above.

Explanation:

All the given statements are correct, they will have to tax the middle class as well, government will have to reduce the expenditure and just taxing the rich will not be enough. To eliminate the deficit, government spending must be reduced.