Why is it unlikely that tax increases will be the way to eliminate current U.S. federal budget deficits?
A) Increasing every worker's taxes by the same amount could eliminate the deficit, but it is likely this action would be viewed as too burdensome for workers with modest incomes.
B) The revenues generated by increasing taxes on the rich would only pay for a small portion of the federal budget deficit in any recent year.
C) Since World War II, on average when taxes were increased by a dollar, federal government spending increased by that much and more.
D) all of the above

Question

Quizplus · Accepted Answer

Each of the provided reasons contributes to why it is unlikely that tax increases alone will eliminate current U.S. federal budget deficits. A) highlights the burden on workers with modest incomes, B) points out the insufficiency of revenues from taxing the rich, and C) indicates a historical trend where increases in taxes lead to at least equivalent increases in government spending.

Why Is It Unlikely That Tax Increases Will Be the Way