Why is it unlikely that tax increases will be the way to eliminate current U.S. federal budget deficits?
A)Increasing every worker's taxes by the same amount could eliminate the deficit, but it is likely this action would be viewed as too burdensome for workers with modest incomes.
B)The revenues generated by increasing taxes on the rich would only pay for a small portion of the federal budget deficit in any recent year.
C)Since World War II, on average when taxes were increased by a dollar, federal government spending increased by that much and more.
D)All of the above.

Question

Quizplus · Accepted Answer

All the options provide valid reasons why tax increases alone are unlikely to eliminate the U.S. federal budget deficits. Increasing taxes on all workers could be too burdensome, taxing the rich would not cover the deficit, and historically, increased taxes have led to increased government spending.

Why Is It Unlikely That Tax Increases Will Be the Way