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To: taxcontrol

Question: If taxes equal government spending, then:
Your Answer: government debt is zero
Correct Answer: tax per person equals government spending per person on average

Mathematically both must be true.

tax revenue = spending

divide both sides by population

tax revenue/population = spending/ population

But the @nd equalization assumes all people pay taxes.

Therefore the first equation is righter.


87 posted on 07/05/2011 9:36:47 PM PDT by ThomasThomas (I am still looking for that box I am supposed to think out of.)
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To: ThomasThomas

But that wouldn’t take into account things that come up requiring immediate money that you haven’t budgeted expenses for...


90 posted on 07/05/2011 9:39:00 PM PDT by rlmorel ("Tolerance is the virtue of the man without convictions." Gilbert K. Chesterton)
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To: ThomasThomas

“Mathematically both must be true.”

Not so. You can’t determine anything about the size of the debt from the question or its answer.

Taxes simply have to equal all government spending, including interest on the debt, in order to balance taxes and spending. This has been accomplished exactly twice since the end of WWII IIRC.


110 posted on 07/05/2011 9:57:02 PM PDT by Pelham (Islam. The original Evil Empire)
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To: ThomasThomas

Nope. Not mathematically equivalent. Debt is accumulation. All the given statement allows you to say is current account deficit is zero.


114 posted on 07/05/2011 10:01:08 PM PDT by FredZarguna (He played an aspiring Marine Biologist on TV. And he's practically a white dwarf, too.)
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