You are required to submit a document that answers the following questions. In addition, please submit a table with a proposed budget based upon your discussions and work last week.
a. Do you think it is important to create a budget that has less spending than tax revenues collected? Explain.
b. What are some economic and political reasons why it is difficult to cut spending from the current high levels?
c. Deficit spending happens when a government spends more than what it has coming in from taxation. Under what circumstance do you think this could be a good strategy?
d. Will you increase taxes to help collect more money? If so, what will be your plan for your tax increase?
e. Will you decrease taxes? Regardless, what are possible advantages to decreasing taxes even when spending is high?
f. In what areas will you allocate money to stimulate the economy? Explain.
Part II
Last week in your groups you reviewed the federal budget
Depending on the category you selected, develop a proposed budget, you may create new categories, your budget should have THREE line items. Provide a rationale for each item.
