Fiscal Policy
What are the three major categories of revenues for the federal government? Please comment on each and indicate their relative importance to each other. Relative importance can be indicated by dollar amounts, percent of total revenue or expenditure or, though less informative, by ranking.
The three categories of revenues for the federal government include: individual income taxes, corporate income taxes and social insurance taxes. These areas are interconnected to each other based upon: the strength of the economy and areas they are focused on. For example, in 2009 individual income taxes were $1.01 trillion. This is the largest category for revenues received. While corporate income taxes were $223 billion and social insurance receipts were $915 billion. In the case of individual and corporate incomes taxes, the total amounts were impacted by shifts in the economy (which were down from the previous year). While social insurance receipts were up modestly. These areas are showing how individual and corporate income tax revenues are subject to changes in the economy. Whereas social insurance taxes; are protected from these adjustments. The combination of these elements will have an effect on the total amounts of revenues that are received (from year to year). ("The Budget and Economic Outlook," 2009)
What are the three major categories of expenditures for the federal government? Please comment on each and indicate their relative importance to each other. Relative importance can be indicated by dollar amounts, percent of total revenue or expenditure, or, though less informative, by ranking
The three categories of expenditures of the federal government include: mandatory spending, discretionary spending and net interest. All three areas are interconnected from their ability to impact the national debt. Mandatory spending is the biggest category with this accounting for $2.164 trillion (in 2009). Discretionary spending is the second largest category coming in at $1.184 trillion. While the net interest; is accounting for $195 billion in expenditures. These different areas will have an impact upon the total amounts of increases or decreases on annual...
Fiscal Policy The three major categories of revenue for the federal government are individual income taxes, corporate income taxes and social insurance taxes. The most important of these are the individual income taxes, which represent 55.1% of the total budget revenues, or $1.396 trillion. The second-most important revenue category is the social insurance taxes, which account for $978 billion, or 34.6% of the total budget revenues. The third-most important category is
Decisions and policy changes have implications all around the globe, not just in the nation that makes these changes. Improving a nation's current account, which is a product of a depreciating dollar where investors move their money to foreign currencies and trade products, also helps to boost the legitimacy and perceived strength of an economy. In Canada, this has the effect of depreciating the currency and boosting aggregate demand, which
Fiscal Policy: The United States fiscal policy affects all types of economic and financial decisions within the country. In addition, the U.S. fiscal policy has significant financial and economic effects on other countries across the globe because America is the largest economy worldwide. Generally, monetary policy is geared towards influencing the performance of an economy as evident in various factors like employment, economic output, and inflation ("U.S. Monetary Policy," n.d.).
Fiscal Policy in the Global Environment: Case Study on Ireland Economic Policy The objective of this work is to examine the key aims of fiscal policy and to determine what the appropriate fiscal policy stance is for the Irish economy at the present. Research questions in this study include those stated as follows: (1) What are the key aims of fiscal policy? (2) What is the appropriate fiscal policy stance for the Irish
At a general level, the fiscal policy decreased the individuals' purchasing powers, which subsequently translated into lower levels of consumption. In other words, people bought commodities at higher prices, but they lowered their purchase volumes. The government will probably end up with the same level of federal revenues, but their collection structure will suffer modifications. In other words, the same amount of taxes was once collected through lower taxes and
Monetary and Fiscal Policies in Malaysia Malaysia is a small, trade-dependent economy with a high amount of foreign presence in both the real and financial sectors; globalization and capital flows have therefore had a considerable impact on the operation of monetary policy in the nation. Over the last decade, Malaysia has had quite a diverse experience in its monetary policy operations, with the alterations in the monetary framework being made
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