User Account

All Pages

Reduction or an income tax reduction

Assignment Help Macroeconomics
Reference no: EM132606878

Some years ago, the Federal government cut the GST (the federal sales tax on goods and services which Ontario later blended into the PST to create the HST) by two percentage points. The federal government could have transferred this cut to income taxes instead, i.e. it could have decreased taxes on income instead of on the GST. Sources of income that taxes are paid on include labour (work) as well as investment earnings. Assuming that taxes are to be cut, which tax cut do you believe is more beneficial for long run economic growth, a GST/HST reduction or an income tax reduction? Assume that either of the reductions would be revenue neutral, i.e., the federal government would forfeit the same amount of revenue with either tax that is cut.

Reference no: EM132606878

Questions Cloud

When business purchase inventory on credit the effects are : According to the accounting equation. When business purchase inventory on credit the effects are? Liability and owner's equity.
Community manager or emergency manager : Write a clear and well thought out easy on the following problem as a community manager or emergency manager.
Make the appropriate entry to record the write-off : Make the appropriate entry to record the write-off of the Marsh account. Also show the balance sheet presentation of accounts receivable before
How you will model good storytelling to your students : Stories are everywhere. They are the basis of our nightly news, our conversations at the dinner table or on the phone, and the articles we read in our local.
Reduction or an income tax reduction : Some years ago, the Federal government cut the GST (the federal sales tax on goods and services which Ontario later blended
Prepare the closing entries at December : The ledger of Kaya Company contains the following balances: Retained Earnings $30,000. Prepare the closing entries at December
Why should auditing add value to the organization : Why should Auditing add value to the organization? Critique the semantic theory of Accounting. Critique the Scientific method of Accounting Research.
How does reflecting on the idea influence your beliefs : Using gestures while reading helps children to increase their vocabulary skills. Think back to a nursery rhyme from your childhood that included gestures.
How the appearance of solvency for a business changes : How the appearance of solvency for a business changes when using cash vs. accrual accounting, noting which stakeholders might be affected

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd