Balanced budget incidence takes into account:

Question

Quizplus · Accepted Answer

Balanced budget incidence refers to the distributional effects of balancing the federal budget through taxation and spending policies. It takes into account the benefits of the spending financed out of the tax revenues, such as the provision of public goods and services that benefit society as a whole. Therefore, option A is the correct choice. Option B is incorrect because balanced budget incidence is not concerned with the extent to which taxes help balance the federal budget. Option C is also incorrect because it is not a benefit that taxpayers receive directly from a balanced federal budget. Option D is irrelevant to the concept of balanced budget incidence.

Balanced Budget Incidence Takes into Account