As real incomes grow, what happens to federal tax revenues as a share of the economy?

The tax system of the United States is progressive: taxes take a larger share of the income of those with higher earnings. Because of this progressivity, as incomes grow, more of it will be taxed at higher rates. Thus, the share of income taxed away from citizens will expand as the real incomes of individuals increase. As a result, if there are no changes in tax legislation, taxes will increase as a share of the economy as real incomes grow.

Economics

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A 2013 article in the Financial Times predicted that the post-2008 Eurozone debt crisis:

A) is over and the benefits from the ordeal are valuable lessons about fiscal responsibility. B) is capable of solution but far from over. The article blames the private financial sector and denies that fiscal irresponsibility is the sole cause. C) is a bellwether of the decline and eventual collapse of the euro. D) teaches us that fiscal restraint is much more important than economic performance or unemployment issues.

Economics

Population expansion can impede economic development for the following reasons, except:

A. Reduced saving and investment rates B. Reduced productivity of labor C. Larger supply of labor D. Contribution to urban congestion and problems

Economics