How does a slowing economy affect the budget surplus?

Answer 1

A slowing economy means less tax revenue for the government and therefor the budget surplus will be reduced. As businesses make less money and pay less in taxes the government has less to work with. If employment also significantly reduces than income taxes collected by the government will also be effected but much less so.

Take care,
Troy

Answer 2

Slowing economy means less business, which means less employees, which means less taxes being collected. The same thing happens when you raise taxes, there is less investment, therefore less business and again less tax revenue. Lower taxes mean more moeny comming in to the treasury due to higher business activity. This simple truth has been proven manhy times, and yet we now have democrates who want to raise taxes again. They will never get it.

Answer 3

Vote buying. that's humorous. If a guy advised voters he'd supply them $10,000 each and every to vote for a weaker u.s., that they had combat that. yet while a guy says he will cost the grandchildren your taxes at a similar time as increasing spending (which all Republicans do. I hear the bull approximately W Bush's wars and terrorism, yet no solid answer to why he spent extra locally than tax-raiser funds-balancer bill Clinton along with his very liberal very costly Medicare area D) Republicans are superb with that. I in simple terms are not getting it. however the strangest factor yet is that Romney is working as a vote-buying W Bush Republican, and peoople have not chased him foreign places yet.

Answer 4

it means less everything