The problems posed by special interests are unaffected by fiscal federalism

Suppose there was a substantial increase in political instability in the rest of the world. What would be the effects on the U.S. current account? Explain

What will be an ideal response?

Under current tax laws, individuals do not pay taxes on health insurance benefits they receive from their employers. As a result

A) the federal government spends more than it receives in tax revenue. B) individuals are encouraged to want generous health coverage that reduces their incentives to cut costs. C) the quality of health care provided is less than it would be if benefits were taxed. D) politicians are encouraged to raise income and payroll taxes.