financial math worksheet: deficits and funding through taxes\nname: ____________ date: ____________\ninstruct…

financial math worksheet: deficits and funding through taxes\nname: ____________ date: ____________\ninstructions: study the charts and answer the questions below.\nchart 1: federal revenue vs. spending (2019–2023)\nfederal revenue vs spending (trillions)\n1. in which year was the largest deficit recorded (spending - revenue)? estimate the amount.\n2. in 2021, revenue was about $4.0 trillion and spending was $6.8 trillion. what was the deficit that year?\n3. based on chart 2, what is the largest source of federal revenue? what percentage does it represent?\n4. if payroll taxes generate 36% of revenue and total revenue in 2023 was $5 trillion, how much came from payroll taxes?\n5. explain how deficits add to the national debt over time. give an example from the charts.

financial math worksheet: deficits and funding through taxes\nname: ____________ date: ____________\ninstructions: study the charts and answer the questions below.\nchart 1: federal revenue vs. spending (2019–2023)\nfederal revenue vs spending (trillions)\n1. in which year was the largest deficit recorded (spending - revenue)? estimate the amount.\n2. in 2021, revenue was about $4.0 trillion and spending was $6.8 trillion. what was the deficit that year?\n3. based on chart 2, what is the largest source of federal revenue? what percentage does it represent?\n4. if payroll taxes generate 36% of revenue and total revenue in 2023 was $5 trillion, how much came from payroll taxes?\n5. explain how deficits add to the national debt over time. give an example from the charts.

Answer

Explanation:

Step1: Analyze Chart 1 for largest deficit

Find the year where the gap between spending and revenue line is largest. In 2020, revenue is around $3.4$ trillion and spending is around $6.6$ trillion.

Step2: Calculate deficit in 2020

Deficit = Spending - Revenue. So, $6.6 - 3.4=3.2$ trillion.

Step3: Calculate deficit in 2021

Given revenue = $4.0$ trillion and spending = $6.8$ trillion. Deficit = $6.8 - 4.0 = 2.8$ trillion.

Step4: Analyze Chart 2 for largest revenue source

Income taxes are the largest source, representing $50%$.

Step5: Calculate payroll - tax revenue in 2023

If total revenue is $5$ trillion and payroll taxes are $36%$ of revenue, then payroll - tax revenue = $0.36\times5 = 1.8$ trillion.

Step6: Explain deficit and national debt

A deficit occurs when spending exceeds revenue. The government borrows to cover the short - fall. This borrowing adds to the national debt. For example, in 2020, the large deficit meant the government had to borrow a significant amount, increasing the national debt.

Answer:

  1. 2020, $3.2$ trillion
  2. $2.8$ trillion
  3. Income taxes, $50%$
  4. $1.8$ trillion
  5. A deficit occurs when spending exceeds revenue. The government borrows to cover the short - fall, which adds to the national debt. For example, in 2020, the large deficit led to increased borrowing and thus an increase in the national debt.