Tuesday, April 5, 2011

Spending too much or taxing too little

The existence of automatic stabilizer will cause government deficits to increase during recessions. Tax revenues are largely based on incomes, a decline in income will decrease tax revenues. Additionally unemployment compensation and welfare payments increase during recessions. Obviously the debate today is whether or not will increase taxes or cut spending.

1 comment:

  1. It’s tough thing to debate over, but as a Forex trader, I never have to worry about taxes or extra charges especially when I am working with broker like OctaFX since they are absolutely awesome due to their daily market news and analysis updates, it’s ever easy to follow yet highly effective and makes trading easier for me with been able to keep up with the market and all the happening around, so it makes me relaxed with doing everything.