Question

1) Large increases in taxes on the wealthy would allow us to easily pay down the public debt.

TRUE or FALSE?

2) Interest payments are expected to rise over the next 30 years because:

O A. interest rates are expected to rise by more than the deficit is expected to fall

O B. interest rates are expected to rise

O C. the deficit is expected to rise

O D. interest rates are expected to rise and the deficit is expected to rise

3) To learn about the long-term budget outlook, a good source is:  

O A. The Office of Management and Budget

O B. The Congressional Budget Office

O C. The Bureau of Labor Statistics

O D. The Federal Reserve

Answer 1

Q.1.

A popular suggestion is that raising taxes only on high earners (for example, the top one percent) would fix the debt problem. Although revenue from high earners could contribute to the solution, it is unlikely to be enough to fully solve our debt problems. This is particularly true if efforts to raise income from high earners come primarily from raising individual income tax rates.

FALSE

Q.2

Interest payments are expected to rise over the next 30 years because interest rates are expected to rise and the deficit is expected to rise even further.

Correct Ans - D

Q.3.

To learn about the long-term budget outlook, a good source is the Congressional Budget Office.

Correct Ans - B