If the state of Washington's government collects $75 billion in tax revenues in 2013 and total...
Question:
If the state of Washington's government collects $75 billion in tax revenues in 2013 and total spending in the same year is $74.8 billion, the result will be a:
a. budget deficit
b. budget surplus
c. decrease in payroll taxes
d. decrease in proportional taxes
Proportional taxes:
The tax revenue that is collected as a percentage of the entire tax base in the economy, such that an increase in the income increases the total revenue collection by the government, is referred to as a proportional tax.
Answer and Explanation: 1
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View this answerThe correct option is: b. budget surplus.
The tax revenue collected is $75 billion, and the government spending is $74.8 billion. As the tax revenue...
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Budget Deficit | Definition, Causes & Effects
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Chapter 11 / Lesson 14
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Examine the budget deficit definition and the causes of budget deficits. Find out how government budget deficits affect the economy and learn relevant history.
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