1. If a large corporation were to go out of business, I think the federal government should be very careful and cautious when dealing with the fact of whether to subsidize them or not. There's a thin line in whether a business will be successful or not, which is why the government should investigate before dealing with the money aspect of the problem. There has to be a reason as to why a big corporation is failing in their market and a key thing for that might just be, the market demand is no longer there. Consumers are no longer attracted to their product or maybe their services are no longer needed, that there are competitors out there, supplying better and more useful products. A general example for this problem would be GM, the reason why the big corporation had failed in business was simply because of the diminishing demand for their brand. The company was failing in producing a product that appealed to the masses whereas, other companies were able to fulfill that goal. The quality was also below what their competitors had to offer. Simply put, the corporation was out dated and their golden had come to a close. Unless they have a way or solution to come up with a better product for the market, the corporation won't survive no matter if the government subsidize them or not. Without the right idea or demand, the company won't survive. If the government has faith in a company and thinks that they have the potential to climb in profits then I would say yes, subsidize them but set a very strict time stamp or give them a certain requirement they must fulfill, such as you need to reach x profits in y months. The government spends a total of 80+ billion on businesses each year which is very high. They don't have the luxury to commit and save every corporation. Plus, if a corporation is closing, the employees are better off to leave then to keep them in a loophole that is soon to fail. Other companies might want their knowledge or labor, such as those of the competitors.
2. I'm against it. I think the revenues that the federal government is gaining from taxes is way too high. For example, the 36% gained for social security is more than that they are actually spending in their plan of 20 %, where does the 16% go to, other spending plans? I know for a fact that medicare and social security and defense programs are highly needed in the country but the spending on it is extremely high especially when it's funded from our own pockets. If the revenues continue at this pace, more people will be desperately hurt in the future and end up unemployed. The US needs to come up with other alternative ways in creating revenues aside from stripping the pockets of the middle class. I'm really surprised about the revenues gained from corporate income, I expected it to be higher but instead it's merely an 8% which is so small. I think we're slowly on the right path but there needs to be precautionary actions when making the right decisions and tax plans for our nation. A key to this is to avoid deficits.
3. The national has grown significantly in recent years due to rising annual deficits. Deficit occurs when teh government spends more money than it receives. For example, in the year 2011, a total of $3,598 billion in spending was spent when only $2,303 revenues were received, which is huge problem faced in our nation, when we're facing $16 trillion in debt.The reason for such a high number is because we are used to borrowing from foreign countries to make up the difference. The gross federal debt composed of 2 parts, 1. the money the government borrows from the open market from domestic or foreign investors and 2. Intra-governmental debt, which is the money the government owes itself (Social Security trust fund). One reason for the debt is that our national spending average is way too high, higher than the historical average which is at 20.9%. America needs a solution that creates more revenue while keeping up less spending, generating more money. A problem that should be fixed is the complex american tax system and the critical amount that is taxed on the middle class versus those of the higher class. The government should create major cuts on spending and focus on the developing the growth of the economy, for the working class is the class that make up the nation. There needs to be changes to the entitlement programs. Without any significant changes, the programs will put growing pressure on the federal budget and could eventually bankrupt the future generation. Instead of the constant delay in action, the time to act is now.
