Final answer:
Payment of expenses by a cash basis taxpayer does ensure a deduction in the current year, which is true. Additionally, the colonists objected to the application of tax money without representation, not the principle of taxation. Governments make up budget deficits through borrowing, using reserves, or printing money.
Step-by-step explanation:
The statement that payment of expenses by a cash basis taxpayer ensures a deduction in the current year is True. For cash basis taxpayers, expenses are only deductible in the year they are actually paid. This contrasts with accrual basis taxpayers who can deduct expenses when they are incurred, regardless of when they are paid.
As for the historical concept regarding colonists and taxation, the statement that the colonists did not necessarily object to the principle of taxation, but rather how the tax money would be applied is True. The colonists were particularly troubled by taxation without representation, meaning that they had no say in how the taxes they paid were being used by the British government.
Regarding budget deficits, when governments run them, they have to make up the difference between tax revenue and spending through various means, such as borrowing from the public or other countries, drawing down reserves, or printing more money, which can lead to inflation.