The major revenue sources for government income are: the profits tax, the salaries tax and the property tax, which correspond to the three major classifications of taxes. The major expenditure sources are: transfer payments to persons, defense consumption and social security (BLS, 2007). For state governments, the revenue is generated by land and municipal taxes and the expenditure is generated by retirement and disability, other direct payments and grants. The 2 major tax philosophies are: the single and the progressive one. Sales taxes are designed to be proportional, but in fact they are also called regressive because people with low income usually spend a higher % of their income on taxable sales, than people with higher incomes.
If the government doubled or tripled the taxes, the first impact would be to slow down the economic expansion, because companies would have less money to invest and investment is important to grow. The 2nd effect would be for companies to have less incentive to pay taxes even if they had the money.
The national debt is the money owed by any government. Just like any debt is bears costs that are proportional to the borrowed amount. By refinancing the national debt, the government is raising money to pay the outstanding amounts of its debt. The more the governments borrow, the higher the outstanding debt is and if the outstanding amount is not paid the debt is growing from one year...
S. Demand for fuel in the United States does not necessarily create a benefit to the U.S. economy. What it does is allow Canada to sell more fuel to the United States. Moreover, American firms trade more with Canada as they begin to ramp up their economy. These trends mirror the trends with the Mexican economy as well, that country being another key supplier of both energy and general trade to
GDP does not measure growth sustainability. My country may be achieving high GDP temporarily in a sense that there is misallocation of investments or over exploitation of natural resources. However, considering that it is a basis of standard of living, market prices of commodities as well as other leisurely items may get up high but in reality it should not be the case. I may be forced to buy
Gross Domestic Product (GDP) GDP or the Gross Domestic Product of a country is one of the basic tools used to measure how well an economy is performing. It is the measure of the value or worth of the goods and services that have been produced in an economy over a set time period. It may also be classified as the size of any country's economy and can provide as
Economics GDP The Gross Domestic Product (GDP) is a measure of the economic activity in an economy. It is usually used to measure activity in a country, but may also be used for larger or smaller regions. In basic terms the GDP is the market value of all the goods and services that produced with the country or area where the measure is being applied. There are three different ways that GDP
Gross Domestic Product (GDP) is the total value of goods and services produced in a country over a period of time. Most economists consider it to be the broadest indicator of a country's economic health. In the United States too, the GDP has been adopted as a key measure of economic activity since the early 1990s and the U.S. Bureau of Economic Analysis (BEA) regularly releases detailed GDP figures that
Gross Domestic Product refers to the total worth of final goods and services produced within the nation in a given year. GDP accounts for the income generated as per the location it is earned instead of the owner of the factor of production. (Gross Domestic Product) GDP thus is an aggregate quantification of the total worth of the net output of all the domestic producing units of a nation or
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