Question

How might the fact that many people who vote in national elections pay very low or even no income taxes affect the capability of the political process to reduce government budget deficits?

Short answer

Government expenditure increases may have a compounding effect causing aggregate demand to rise even more.

Step-by-step solution

National elections pay income taxes.

Compensation paid to election workers is taxable as wage income and will be considered as wages for the needs of Social Insurance and Medicare (FICA) taxes.

Ways to cut back Government deficits.

Cutting non-interest government spending, increasing tax or other revenue, and lowering the rate on government debt are the three strategies to attenuate the deficit.