Government spending and taxation
I was needing help with these questions. They are from the book Macroeconomics: Private and Public Choice, 14e. It is the Special Topic 1.
2) During the past five decades, there has been a shift in the composition of the federal budget toward more spending on income transfers and health care and a smaller share for national defense. Does economics indicate that this change will help Americans achieve higher living standards? Discuss.
3) Because the structure of the personal income tax is progressive, a larger share of income
is taxed at higher rates as real income increases. Therefore, economic growth automatically
results in higher taxes unless off-setting legislative action is taken. Do you think this is an attractive feature of the current tax system? Why or why not?
4) Compared with the situation before 1981, the marginal tax
rates imposed on individuals and families with high incomes are now lower. What was the top marginal personal income tax rate in 1980? What is the top rate now? Are you in favor of or opposed to the lower marginal rates? Why?
7) Can democracy survive if a majority of the citizenry pay little or nothing in taxes while
benefiting directly from a higher level of government spending? Why or why not? Discuss.