Part 5/11:
Tariffs: On imported goods.
Corporate Taxes: On business profits.
Other Miscellaneous Taxes: Including tolls, excise taxes on cigarettes, lotteries, and more.
Despite efforts to diversify revenue streams, the government still faces a sizable budget deficit, projected to reach $7 trillion in 2025, with expenditures surpassing income by about $2 trillion.
Strategies to Bridge the Budget Gap: Spending Cuts and Tax Reductions
To address the budget deficit, the federal government has adopted a dual approach:
- Spending Cuts: Initiatives such as reducing IRS staffing and trimming expenses represent a move towards austerity.