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The U . S . government has a budget deficit because it spends more money than it collects. Decisions made by Congress and are then
The U . S . government has a budget deficit because it spends more money than it collects. Decisions made by Congress and are then signed by the president to increase government spending, stimulate spending, and cut taxes are made by persons who don ' t fully understand financial management. The theory behind tax cuts and stimulus is that they will create more taxable revenue and cover any shortfall. The deficit will grow if lawmakers don ' t cut costs or increase revenues. The deficit is caused by fiscal irresponsibility and will continue to grow for the same reason. While Clinton was in office, the federal government experienced increased revenues and decreased spending. Proving that fiscal responsibility is possible for the federal government. The government could institute a tax on states without state income tax, raise tax rates, or expand the tax base. ( Jones et al . 2 0 2 4 , p . 2 - 4 ) They could institute a federal sales tax or tax casino gambling. The government can make any tax law it would like. I have to disagree with any of these approaches. I do not think the answer is to increase tax revenue
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