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The US government has been running a deficit budget since 2001, one of the reasons

attributed to this dilemma is tax cuts. Do you think it is right for government to raise taxes to cut
the deficit? Discuss why you choose the answer that you have chosen and also discuss other measures government can use to eliminate the deficit.

User Raja Fawad
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1 Answer

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Answer: See explanation

Step-by-step explanation:

A budget deficit occurs when the expenditure that the government incurs is more than the revenue. I believe it's right for the government to raise taxes to cut the deficit.

One vital reason for the increase in the government spending can be attributed to the cut in taxes. Government typically generates majority of their revenue from the tax. So once tax is increased, this will bring about a reduction in the deficit.

Another way to eliminate the deficit is for the government to reduce its expenditure. An example is the reduction in the amount that the government spends on defense. When the government reduces its spending, this can also help in reducing the deficit incurred.

Finally, another way to eliminate government deficit is through economic growth. Once there is an increase in the Gross domestic product of an economy, then this can also help in checkmating the deficit.

User Memoizr
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