What are the burdens of the public debt? Many people advocate taxing \"the rich\

Question

What are the burdens of the public debt?

Many people advocate taxing "the rich" to alleviate the debt problem but the truth is that taxes will have to be increased on all income earners. What macroeconomic impacts would you expect to see if taxes are raised "across the board"?

If increasing taxes would still not completely resolve this issue government spending will also need to decrease in order for our country to make significant progress toward reducing the debt. Where should these cuts be made? Why? What impacts would you expect to see?

Explanation / Answer

Government debt (also known as public debt and national debt) is the debt owed by a central government. (In the U.S. and other federal states, "government debt" may also refer to the debt of a state or provincial government, municipal or local government.) By contrast, the annual "government deficit" refers to the difference between government receipts and spending in a single year, that is, the increase of debt over a particular year

The confluence of fiscal policy changes scheduled to occur at the end of 2012

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