1: I believe if the government were to increase taxes and spending cuts, that that would help with the deficits. If they were to increase taxes, that is increasing the amount of money that the government is receiving and that can then help decrease the debt and the deficits in the economy. If they were to have spending cuts, that would decrease the amount of money the government is spending on goods and services, and some that may be unnecessary. I believe it should be a combination of both. Spending cuts and manipulating taxes affect each other. In terms of increasing taxes, I feel a small amount of affect should come from this and a larger amount should be from spending cuts. In the long run, after tax increases the government spending …show more content…
By ending the wars, that can help save money that the government is spending on weapons and other things that may be needed overseas. If you increase the tax rate by 1%, that is bringing in more money to the government to help with the deficit. When you allow private plans to compete with Medicare, that is allowing people to pick what is better, and if they pick the private plan that is saving money in the government because they are not using the taxes to pay for the Medicare. When you require the state to cover one quarter of the food stamps cost, that is saving money that would have been put towards the Medicare, but instead is being put towards helping pay off the debt and lower the deficit in the economy. Finally, when you put a 4% surtax on income more than $5 million. Increasing the tax rate on higher incomes will bring in even more money than when they are taxed with the regular tax rate. By bringing in this extra tax amount, that is then helping decrease the deficit. Doing these things did not reduct the deficit of the GDP to