Social Studies, 12.08.2020 09:01 AlexBeWare1210

Fernando noticed that the percentage of federal income taxes his employer deducts from his paycheck each week has increased. This means he has less money to spend. However, he has heard that the company he works for just received a large contract from the federal government to build more high-tech helicopters for the military. Olivia is happy that the percentage she pays in federal income taxes has decreased this year. She is thrilled that the candidate who ran on a platform of tax cuts won. She is finally able to purchase a new car and to save money for a down payment on a home. At dinner that night, her friend tells her that his unemployment benefits have just been reduced, will run out soon, and won’t be renewed. What is the relationship between taxes and government spending in these two scenarios?

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