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INCOME TAX as an example of tax:
Outcomes from the section:
Differentiate between personal Y tax base & comprehensive Y tax base
Explain progressiveness of personal Y tax
Discuss economic effects of personal Y tax: emphasize efficiency
INCOME TAX: topics
The comprehensive income tax base
Personal income tax base
Personal income tax rate structure
Economic effects of personal income tax
INCOME TAX: definitions
Tax bases mentioned so far: income, wealth and consumption
Here we focus on income
What is income? by sources and by uses
Uses side definition: the net increase in the power to consume over given period: Y = C + S
INCOME TAX: definitions
From sources side:
Anything that makes consumption possible:
i.e. wages, interests, capital gains profits, remittance, etc.
This is comprehensive definition of Y as it reflects purchasing power
INCOME TAX: definitions
But governments tax these sources separately:
For instance Y to individuals = personal income......
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Title: Survival Of Small Firms
Approximate Word Count: 481
Approximate Pages: 2 (250 words per double-spaced page)
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Survival Of Small Firms
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