Hello can you please help me with the explanation of this problem step by step, please.

The Design of the Tax System, our federal government is running deficits every year. Before the pandemic and before 2018, the deficit was cut in half due to three reasons: 1) economy recovered from the great recession causing two changes: a) bringing in more tax revenue and b) less spent on automatic stabilizers like unemployment benefits and food stamps; 2) smallish increases in tax rates; 3) smallish reductions in federal government spending.

However, since 2018 the federal government deficit has increased again due to the recession caused by the current pandemic leading to less federal tax revenue collected and more spent on automatic stabilizers, and also congress passed one economic stimulus relief package. Also, in 2018, congress reduced taxes: 1) reduced the marginal tax rates on income and 2) reduced the corporate tax rate.

I wish there was an updated version, but I still think it is a useful exercise to go back to 2011 and see this New York Times interactive website where you can decide how our federal government could completely eliminate the federal deficit through tax increases or government spending cuts:

I am attaching you this link because there is an exercise here. My camera is not working noe so I could not take the second picture and I will atach just one. Thank you.

http://www.nytimes.com/interactive/2010/11/13/weekinreview/deficits-graphic.html?_r=0

Get a Pencil. You're Tackling the Deficit. An interactive graphic (without all the costly computer equipment): just follow the instructions to right the nation's finances. By DAVID LEONHARDT and BILL MARSH Try to cut $1.345 trillion from the 2030 budget. Why 2030? That's when boomers start to weigh heavily on the budget, and it's the latest year for which experts have estimated costs for budget items. Each square ( ] ) in the big grid below represents $1 billion. Your job is to fill in these squares by choosing from our menu of spending cuts and tax hikes. N - FILL IN THIS GRID ($1.345 TRILLION) Below is the menu of options for plugging this $1.345 trillion Scan the options and consider their consequences. hole. Yes, we know: real-world Then start making choices. policymakers have more moves than just these. But we are Each option has an amount, in billions of dollars, by which it would reduce the deficit. As you make each presenting options that span all choice, fill in that number of squares on the big grid at major sectors of the budget and left. Just 1,345 squares later, presto! Problem solved. many points across the political spectrum. To make it easier, estimates listed below are rounded to the nearest $5 billion. The grid is organized the same way: Your options come in two flavors: cutting spending KEY $5 BILLION $10 BILLION $100 BILLION and raising tax revenue. Our menu contains almost triple the cuts and revenue hikes needed to plug the deficit, TIPS As you fill in the boxes at left, you don't have to mimic the configurations shown below - just get the amounts right. Also, so you will be able to ignore you may want to mark off squares in two colors: one for spending some choices you don't like. cuts and one for tax revenue, to see how your choices sort out