Answer:
Increase in tax rate will reduce income form bond but will not affect the benefits derivable from the purchase of the new luxury auto.
Explanation:
First, a look at the after tax rates for when tax is 35% and when it is increased to 50%.
Step 1: Compute the after tax rate when tax is 35%
=Interest rate x (1-tax rate)
= 0.08 x (1- 0.35)
-5.2%
Step 2: Compute the after tax rate when tax is increased to 50%
= Interest rate x (1- tax rate)
= 0.08 x (1-0.5)
=4%
The first outcome is that an increase in tax rate leads to a decrease in income. Meaning an increased tax rate reduces the income from the bonds.
However, an increase in tax rate although it will affect the income will have no effect on the new luxury condo, that Ms V wants to buy. This is because, the benefits Ms V will get from the auto cannot be taxed as compared with the interest on the bond.
Hence, it becomes easier for Ms V to buy the luxury auto than invest in bonds if the tax rate should increase
Answer:
C. Efficiency and equity.
Explanation:
In designing a tax system, their are many factors that can easily stand out to be hindrances seen to be present; here it could be the policymakers, law enforcement agencies, the financial institutes etc. But in the case above, the main focus is seen to be on the policymakers.
Here, there are to main objectives that are seen and observed according to research to be the two main factors that are conflicting between policymakers which are their efficiency and also their equity. Therefore, to easily set the public and private investment, government taps tax revenues.
Answer:
bribery
Explanation:
Bribery, the act of offering, granting, accepting, or authorizing to receive payments or any other object of consideration with the dishonest intent of manipulating a government official in performing his work duties. If money is given or agreed in return for a dishonest act, each act does not have to be done by the professional concerned.
While bribery primarily included contact with judges, its concept has already been extended to provide acts by all types of government representatives, from municipal to federal level, and to include all federal employees.
Operational data are commonly stored in many tables, and the stored data represents information about a given transaction only.
