Asked by Noemi Villalobos on May 05, 2024
Verified
The 1990 deficit reduction legislation
A) contained no new taxes.
B) increased excise tax rates.
C) increased the personal income tax rates by 10%.
D) contained no reductions in non-defense spending.
Deficit Reduction Legislation
Laws enacted to reduce the size of the budget deficit by increasing revenue or decreasing government spending.
Excise Tax
A tax levied on certain goods, services, or transactions, often with the aim of reducing consumption of the taxed items.
Personal Income Tax
A tax levied on individuals or households based on their total earnings from various sources, subject to exemptions, deductions, and tax rates.
- Assess the implications and results of federal budget surpluses and deficits on the national economy's stability and growth.
Verified Answer
JH
Jacob HenschelMay 11, 2024
Final Answer :
B
Explanation :
The 1990 deficit reduction legislation increased excise tax rates, specifically on gasoline, alcohol, and tobacco, in order to generate revenue and reduce the federal deficit. It did not contain any new personal income tax increases or reductions in non-defense spending.
Learning Objectives
- Assess the implications and results of federal budget surpluses and deficits on the national economy's stability and growth.