Deficit spending and national debt are crucial to pay attention to for taxes because they can have a significant impact on a country's economy and fiscal policies, which in turn affect tax revenues and rates.
Deficit spending occurs when the government spends more money than it collects in taxes, resulting in a budget deficit. To finance the deficit, the government must borrow money by issuing bonds, which contributes to the national debt.
When the national debt is too high, it can lead to higher interest rates, inflation, and decreased confidence in the economy, which can all have negative effects on tax revenues and the ability of the government to fund its programs. Additionally, the need to service the debt can lead to higher taxes or reduced government spending in other areas, which can also impact taxpayers.