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income tax collections: a. rise during periods of prosperity, thus reduce federal budget deficits. b. fall during periods of prosperity, thus increase federal budget deficits. c. rise during recessions, thus increase the problem of unemployment. d. fall during recessions, thus increase the problem of unemployment.

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samuelonum1

The correct answer is option a, hence rise during periods of prosperity, thus reducing federal budget deficits.

What is the meaning of income tax?

Every individual that works and even companies are subject to income taxes. The foundation for calculating individual income tax is the income received.

Now, when government expenditure exceeds its income, which includes taxes, fees, and investment returns, there is a federal budget deficit. The national or federal government debt increases as a result of deficits.

Since the burden is presumably on the persons who pay it, it is typically categorized as a direct tax. Net earnings, which are calculated as the difference between receipts and authorized expenses, are subject to corporate income tax.

Learn more about income tax here:
https://brainly.com/question/26316390

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