All categories

3 years ago

Evaluate the economic consequences of increasing progressive taxes in order to redistribute income (6)

Business

1 answer:

Troyanec [42]3 years ago

4 0

Answer:

Increasing progressive taxes in order to redistribute income may be seen as a fair and noble thing, but such measure may have several unintended consequences.

Explanation:

One consequence is that if taxes are raised too high on the highest earners, these people may simply leave the country for another one where taxes are lower. Wealthy people have the means to do so in the modern economy.

Another consequence would occurr if the taxes are raised too high on corporations. Corporations may either leave the country as well, or pass through the higher costs to the consumers.

All in all, progressive taxation is seen as a fair system by many economists, but it should be implemented with care, and by making cost/benefit analysis first.

You might be interested in

Hilltop Manufacturing uses a predetermined manufacturing overhead rate based on machine hours to allocate manufacturing overhead

Sloan [31]

Answer:

Under-allocation of manufacturing overhead is $15,024.63

Explanation:

Actual manufacturing overhead cost $500,000

Estimated manufacturing overhead cost $550,000

Estimated direct labor cost $175,800

Estimated direct labor hours 50,500

Actual direct labor hours 60,700

Estimated machine hours 40,600

Actual machine hours 35,800

Predetermined Rate of Allocation = Estimated manufacturing overhead cost / Estimated machine hours

Predetermined Rate of Allocation = $550,000 / 40600

Predetermined Rate of Allocation = $13.54679803 / hour

Allocated Manufacturing overheads = Predetermined overhead rate x Actual Machine hours

Allocated Manufacturing overheads = $13.54679803 x 35,800

Allocated Manufacturing overheads = $484,975.37

Under / over allocation of manufacturing overhead = Actual manufacturing overhead - Allocated manufacturing overhead

Under / over allocation of manufacturing overhead = 500,000 - $484,975.37

Under-allocation of manufacturing overhead = $15,024.63

3 0

4 years ago

Blossom Corporation had 291,000 shares of common stock outstanding on January 1, 2017. On May 1, Blossom issued 29,400 shares. (

Naya [18.7K]

Answer:

Weighted-average number of shares = 310,600

Explanation:

Given:

Total shares on January 1, 2017 = 291,000 (for 12 months)

Issue of new shares On May 1, 2017 = 29,400 (For 8 months)

Computation of Weighted-average number of shares:

Weighted-average number of shares = [291,000 × (12/12)] + [29,400 × (8/12) ]

Weighted-average number of shares = [291,000 + 19,600 ]

Weighted-average number of shares = [310,600]

5 0

3 years ago

Swifty Corporation developed the following information about its inventories in applying the lower-of-cost-or-net-realizable-val

Hitman42 [59]

Answer:

the inventory value is $267,000

Explanation:

As we know that the inventory is valued at cost or market whichever is lower

As seen from the given information, the lesser value for all products are

Product A $87,000

Product B $58,000

Product B $122,000

So, the total is

= $87,000 + $58,000 + $122,000

= $267,000

hence, the inventory value is $267,000

5 0

3 years ago

Ace Company is a retail store. Due to competition, it is having trouble selling its products. Thus, inventory has been building

jekas [21]

Answer:

c. The management of Ace should consider the effect of slow moving inventory on its liquidity.

Explanation:

Liquidity is an important measure of a company's financial health, its calculation determines how well the company can pay off your short-term debts. Inventory has a great impact on liquidity and it depends on how easily the company can sell it. As ACE is having trouble selling its products, it means that it takes a long time to sell its inventory, which does not help its liquidity since its inventory can not be easily be transformed into cash without losing its value, and that's why this company management must consider moving inventory on its liquidity, in order to increase its current ratio, that means its ability to pay current, or short-term, liabilities (debt and payables) with its current, or short-term, assets (cash, inventory, and receivables).

If this company

3 0

3 years ago

Morgan is the manager of a local circuit city and has put up signs promoting the store's frequent shopper card program. morgan's

inessss [21]

That would be a programmed decision.

3 0

3 years ago