The Macroeconomic Choices

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Macro-Economic Choices Introduction Over the last several years, the budgetary challenges of the federal government have been increasingly brought to the forefront. This is because of the tremendous amounts of spending and the stagnant economy is creating a situation where there are large budget deficits. Over the course of time, this is causing the national debt to increase dramatically. To fully understand what is taking place requires focusing on: the three major categories of revenues, the three areas of expenditures, studying the current debt levels, providing recommendations, looking at different macro-economic indicators and discussing steps that can help to improve economic growth. Together, these different elements will provide the greatest insights as to how the policy decisions of lawmakers are having an impact on the economy. What are the three major categories of revenues for the federal government? Please comment on each and indicate their relative importance to each other. Relative importance can be indicated by dollar amounts, percent of total revenue or expenditure or, though less informative, by ranking. The three major categories of revenues for the federal government include: individual income taxes, corporate income taxes and social insurance taxes. All three of these areas are interconnected with each other. Individual income taxes are the largest category with this accounting for 49.97% to 52.28% (between 2008 and 2014). Corporate incomes taxes
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