Answer:
everyone is willing to pay the taxes to receive the benefits.
Explanation:
Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.
The different types of tax include the following;
1. Income tax: a tax on the money made by workers in the state. This type of tax is paid by employees with respect to the amount of money they receive as their wages or salary.
2. Property tax: a tax based on the value of a person's home or business. It is mainly taxed on physical assets or properties such as land, building, cars, business, etc.
3. Sales tax: a tax that is a percent of the price of goods sold in retail stores. It is being paid by the consumers (buyers) of finished goods and services and then, transfered to the appropriate authorities by the seller.
A Lindahl equilibrium can be defined as an economic state in which there is a production of an optimal quantity of public goods and the cost of these goods is shared in a fair manner among everybody. It was developed by Erik Lindahl.
In a Lindahl equilibrium everyone is willing to pay the taxes to receive the benefits.
<span>One of the difficulties of the comparable-worth policy is that, since it pays differing rates based upon the worth of the job to the overall importance of the business, it can put a company at a disadvantage when compared to businesses that only pay the base market rate for the same position. It can lead to, as shown in the example, increased expenses for the business.</span>
Answer:
When the government lowers tax rates, both consumer spending and private investment increase, leading to an increase in economic growth which will in turn contribute to increase government revenue through a higher tax base.
Explanation:
For every dollar that an individual earns, two things happen:
- propensity to consume: proportion of total income that individuals decide to spend instead of saving. Consumer spending increases private consumption.
- propensity to save: proportion of total income that individuals decide to save instead of spending. All the money individuals save become private investment.
