Problem 21

Introduction

Government spending means expenditures on goods and services by federal, state, and local governments. The combined total of this spending, excluding transfer payments and interest on the debt, is a key factor in determining a nation's gross domestic product (GDP). Whereas, tax means   an amount of money that you have to pay to the government so that it can pay for public services. No-one enjoys paying tax. They are calling for large spending cuts and tax increases.