Question & Answer: why wont increasing tax revenues solve the debt or deficit issue…..

Solution: The increase in tax revenue and tax collection will not solve the problem of the debt and deficit issue because the debt is also effective by many other factors.

(1) Increase in tax revenue will not serve the purpose unless the government is not able to prioritize its spending. The excess or non-systematic government spending is one of the reason.

(2) Instability in the value of money is also a major reason of debt problem.