What is federal spending and taxes(taxation)?
what is the definition for federal spending and taxation? Do most people think it is fair to tax? What is federal deficit and how has it impacted our nation? Also, how has spending and taxation changed over time, and is raising the taxes for the rich and lowering the taxes for the poor a good idea?
- Anonymous1 decade agoFavorite Answer
Too many questions. Federal spending is the buying of goods and services by the federal government. The government spends on salaries, equipment, supplies, travel, and also major commitments such as social security payments, medicare payments, and interest payments on the federal debt.
Most people think taxes are necessary, but the tax system is not necessarily fair. In attempts to make it fair, it has become extremely complex. Federal deficit means that the government is spending more money that it is receiving from taxation. Therefore it has to borrow the extra money and it has to pay interest on it. It borrows by issuing bonds.
How spending and taxation have changed over time can fill a book. Our current philosophy is that the rich should share a greater burden of taxes than the poor. It does not always work that way. Bush's tax cuts had the opposite effect.