2020 was a very unusual year for government spending because of the COVID response. The nonpartisan Congressional
Question:
2020 was a very unusual year for government spending because of the COVID response. The nonpartisan Congressional Budget Office provides a breakdown of money that was brought in from taxes and spent on various programs here: document Links to an external site. Links to an external site.
After reviewing the information, make a blog post (that includes at least one citation that supports your ideas) where you clearly explain your position on the following topics in a paragraph each:
1. Income taxes on businesses accounted for $212 billion, or about 6% of total tax receipts. Payroll and individual income taxes comprised the vast majority of collected funds. Considering that businesses pay approximately half of all payroll taxes, is this an equitable tax system? Why or why not?
2. Spending on COVID-related items (Paycheck Protection, Unemployment, and Rebates) were an unusual expense. Do you believe this money was necessary to be spent? Why or why not?
3. Because the government spent much more than it took in, there was a substantial deficit compared to prior years. How might this deficit spending affect future economic conditions?
4. The government paid $345 billion to bondholders. What will happen to this amount as interest rates rise? What policies are appropriate to manage the situation?
5. What do you believe the government should do to reduce spending either or increase taxes? Why do you think this is important?
REFERENCES AS WELL NEEDED.
Principles Of Macroeconomics
ISBN: 9781292303826
13th Global Edition
Authors: Karl E. Case,Ray C. Fair , Sharon E. Oster