The congress of the country of the delta is debating budget issues and decides to cancel $5 billion worth of tax cuts in order to balance the budget. An argument against a balanced budget rule would be that benefits from the tax cut were forgone.
Governments enact discretionary fiscal policies when they pass new laws that specifically change the overall level of taxes and spending. In 2009, the U.S. government spent $1.4 trillion more on tax revenue than she did.
Tax cuts reduce government revenues and result in increased budget deficits or government debt. Critics often argue that tax cuts benefit the wealthy at the expense of those with fewer resources, as services are cut in favor of those with lower incomes.
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