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Posted: April 21st, 2024
What is the argument against attempting to balance the Federal
I am having trouble understanding what this question is asking.Each year since winning control of the House of Representatives in the 2010 election,Tea Party Republicans have argued that we need to immediately initiate sharp reductionsin government spending and entitlement programs and rapidly move towards a balancedbudget, (although they have never actually produced a budget proposal in which taxrevenues would match government spending plus entitlement transfers). ManyDemocrats, while arguing that tax rate increases on high income earners need to be partof the any deficit reduction program, have agreed that we need to initiate budget deficitreduction now.A) What is the argument against attempting to balance the Federal Government budgetrapidly at the present time via either deep cuts in Federal Government spending or sharpincreases in federal income tax rates?B) Does this argument imply that budget deficits donât matter in the long run? If not, whymight the impact of large deficits predicted in the long run under current tax andspending programs be different than the impact today? Explain.
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