Who pays taxes and who receives government spending? Explain
What will be an ideal response?
People with high incomes pay a much larger fraction of their income in taxes than do people with low incomes. These tax payments also are more likely to be used for government spending that is concentrated on programs for those with lower incomes. These programs would include welfare, subsidized health care, public education, and jobs programs. The general conclusion is that government spending of tax dollars obtained from those with high incomes will most likely be spent on government programs for those with low incomes. They also will benefit from the other general goods and services provided by government such as national defense or roads.
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The wealth effect, the interest rate effect, and the international trade effect account for the:
a. positive slope of the short-run aggregate supply curve. b. the shape of the long-run aggregate supply curve. c. positive slope of the aggregate demand curve. d. negative slope of the aggregate demand curve. e. negative slope of the short-run aggregate supply curve.
Consumer surplus received from the purchase of a good is $300 . If the producer surplus received for the same good is $600, then the total surplus is $300
a. True b. False Indicate whether the statement is true or false