Statement I: The Tax Reform Act of 1986 was an attempt to reduce the federal budget deficit.
Statement II: The federal budget deficit is what the federal government owes to its creditors.

Question

Quizplus · Accepted Answer

The Tax Reform Act of 1986 was primarily aimed at simplifying the tax code and reducing tax rates, not specifically at reducing the federal budget deficit. The federal budget deficit refers to the difference between what the government spends and what it collects in revenue in a given year, not what it owes to creditors.

Statement I: the Tax Reform Act of 1986 Was an Attempt