...Discuss whether indirect taxes on sugary food and drink should be increased An indirect tax is a tax where the burden of the tax falls largely on the consumer but it is actually paid by the producer. Examples include Value Added Tax, excise duty and sales taxes. Indirect taxes on sugary food and drink will increase costs for producers so they cause the supply curve to shift to the left. The cost of the negative externalities is internalised in the price of the good, this may reduce demand for the good and the level of its production, eating sugary food and drink will increase the likelihood of obesity, early death, depression and certain heart disease. Poor health will also adversely affects work and productivity. Higher prices would discourage people from consuming unhealthy foods. Reducing consumption of sugary foods would have a significant impact in improving health. Also, adding tax on sugar can create an incentive for firms to supply alternatives which are healthier. If firms have incentives to promote healthier foods and drinks with substantially lower sugar content, then consumers will to an extent follow the supply. Moreover, taxes raise revenue for government, this can be spent on alternatives like tax on cigarettes could be used for funding government services to help people to stop smoking. However, it is difficult to measure the level of negative externality. Demand for sugary and drink tend to be price inelastic, so higher taxes will not reduce demand much. Sugary...
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...Balanced Budget Todd Driscoll ECO 203 Principles of Macroeconomics Instructor: Jason Friedline October 23, 2012 Balanced Budget Economists generally agree that high budget deficits today will reduce the growth rate of the economy of the future. The difference between what a government spends and what it collects in taxes in a given period is known as a budget deficit. There are many reasons why this might happen. One might be that if our government keeps spending money that does not exist obviously the more debt will accumulate. The government cannot keep this up without creating more debt. It the same as budgeting you personal accounts. If you get a new credit card or loan to consolidate old debt and then re-use your old cards, it rather defeats the purpose of getting out of debt. Another reason might be that due to the enormous loss of jobs there are less taxes being paid to pay our nations bills or to re-invest back into the economy. There is no point to list these reason in number order there are so many. If the deficit is growing it affects the nation savings, in turn, reduces national income. This may become possible if interest rates go up or domestic investments fall. Economists agree these a few things on when it comes to a high deficit. Deficits over a short period do not really have much affect, because the United States can borrow to cover these gaps due to the dollar’s value as the leading currency. If the deficit is sustained over a long period...
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...Public Finance Methods in Nigeria The Federal Republic of Nigeria is comprised of 36 states located in West Africa geographically bound by the Republic of Niger to the north, the Gulf of Guinea (on the Atlantic Ocean) to the south, the Republic of Cameroon and Chad on the east and Republic of Benin on the west. Since gaining full independence from the British in 1960, Nigeria has gone from a Parliamentary system of government (modeled after the British Parliament), the Biafran Civil War, and numerous dictatorships to the current Democratic system of government. Widely described as the most populous country in Africa (accounting for over half of West Africa’s population alone[i]), the US State Department estimated in 2010 a population of approximately 152 million people of 250 Ethnic groups with the largest ethnic groups comprising of Hausa-Fulani (north), Igbo (south-east), Yoruba (south-west) and Kanuri (north). The religions practiced in Nigeria are Islam, Christianity and indigenous African traditional worship. The Hausa’s are from the northern part of the country and are predominantly Muslims, the Yoruba are from the south west and are predominately an even mix of Christians and Muslims, the Igbos are from the southeast and are predominately Christians. The official language of Nigeria is English in addition to other local dialects. Nigeria’s commercial capital (and former political capital), Lagos, is located in the southwestern part of the country while the political...
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...the government is constantly looking to raise revenue. The easiest and fairest way to do this is by taxing the people. However, how the people will be taxed is always an issue . A flat tax would be a certain percent of gross income to be paid by all. Individuals or businesses would pay the same percentage regardless of income, with no deductions. But that would be just as illegal as the system we have now. There is no law allowing the government to collect an income tax. On the other side, A progressive tax is a tax which increases as a percentage of one's wealth. Using the federal income tax as an example, a person who makes between $0-$7,500 pays no taxes, any income between $7501 and $30,650 is taxed at 15%, up to any income above $336,551 being taxed at35%. A progressive tax differs from what people call "regressive" taxes, like sales tax, which takes a larger percentage of money from individuals with less money .First of all, Progressive taxation is widely supported by experts in economics and political science from many different theoretical camps; in the United States and Europe, the majority of authorities supports a progressive tax and advance many arguments for it. For example, they say that progressive tax gives a government more revenue while also enhancing opportunity for its lower and middle class citizens. Without progressive taxes, there would be a risk of all wealth being concentrated in the hands of a few people. As income increases, households have more...
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...Adult Entertainment: The Effect it has on Local Politics, Taxes, & Society Lindsey M. Chapman BUS 670: Legal Environment Professor Kim Stock-Foster May 21, 2012 While planning the development and growth of any city, most government officials do not keep the idea of adult entertainment type businesses at the top of their list or in the front of their minds; however almost any and every city of any size will have to encounter this type of business at some point in time. Adult entertainment type businesses come with their own type of issues when it comes to tax laws, business permits, and so forth, but in the past these types of businesses have been able to utilize their First Amendment Rights to defend their style of business, but when these types of businesses are utilizing local tax money to protect and defend their businesses when is enough, enough? It is well known that many people will turn to adult entertainment, not only for entertainment but for work for the simple fact of making a significant amount of money in a very short time; however what kind of impact do these types of businesses have on local governments and societies when the majority of the employees do not pay any taxes on their income? The following paper will describe the effects that adult entertainment businesses have on local governments, the tax laws, and the effects these taxes have on the society of the environment the business is in. Throughout history there have been many...
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...that quantity of a good produced increase if the market price of that good increases. Of course, it is just general rule and does not explain all varieties of factors impacting the supply and demand model. There for, the quantitative measurement such as elasticity was introduced to provide more detail about market behavior. Price elasticity describes what happens to the demand for a product as its price changes. If the prices for the product rise the demands will decrease. Price elasticity of demand tells us how much the quantity demanded decreases. It is important topic in economic. Market is always changing and if price for the product will change elasticity tells us how much other things will change. The relationship between price elasticity and total revenue is important. Based on analysis of elasticity management will determine the necessary changes on pricing policy for goods and services. To maximize company’s revenue the price for goods and services should be right. The key factor in establishing the right price is to use price elasticity analysis to predict marginal revenue. This kind of economic analysis uses a specific mathematical formula to describe the ideal theoretical relationship between elasticity and marginal revenue. Every company can use the price elasticity of demand for products to set correct...
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...Economic Systems The way a country’s resources are owned and the way that country takes decisions as to what to produce, how much to produce and how to distribute what has been produced determine the type of economic system that particular country practises. 1. MARKET ECONOMY (also called FREE ENTERPRISE ECONOMIES or CAPITALIST ECONOMY) 2. CENTRALLY – PLANNED or CONTROLLED ECONOMY 3. MIXED ECONOMY 1. MARKET ECONOMY in comparison to 2. PLANNED ECONOMY e.g. USA, Japan Private firms or individuals own means of production. They make choices about: o What to produce o How to produce o For whom to produce - What to produce is answered by consumers according their demand for goods & services - How to produce is answered by the businessmen. They will choose the production method, which reduces their costs to reach the higher profit. - For whom to produce – firms produce goods & services which consumers are willing and able to buy. Role of government 1. To pass laws to protect businessmen & consumers 2. To issue money 3. To provide certain services – police 4. To prevent firms from dominating The market and to restrict the power Of trade unions 5. Repair and maintain state properties Advantages: Goods and services go where they are most in demand and free market responds quickly to people’s wants + wide variety of G&S No need for and overriding authority to determine allocation of goods&services Producers and consumers are free to make changes to suit their aims Competition...
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...After the recent veto of the Keystone XL Pipeline by President Obama, there have been heated debates with supporters and non-supporters of the Keystone XL pipeline. What is a way that the United States can receive more oil at a more efficient price? How can the United States provide many unemployed Americans with jobs? The Keystone XL Pipeline would provide all of these things in the United States, but what harmful influences would it have on our environment. In this paper, there will be information about both the helpful and harmful effects of the Keystone XL pipeline. This paper will include the ways that the Keystone pipeline will help the economy. The paper will also include ways that the Keystone Pipeline could possibly harm the people...
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...AS Economics Answers 4 Government intervention in markets 1 Remedies for market failure Activity 1, page 163 a It has declined. The state now owns less of the country’s housing stock. b That the state thinks there is less market failure in the housing market now than in 1979. use. Figure 1 shows that drivers do not initially pay for the negative externalities (external costs) they generate. A tax equivalent to the marginal external cost would push price up to PX. Road use would be reduced from Q to QX, the socially optimum level. In practice, it is difficult to estimate external costs. d Congestion and other negative externalities caused by car use will increase. Road use by cars is likely to continue to increase in the absence of government action because: the price of road use does not reflect its true costs; road use is income inelastic – as incomes rise, people use their cars more and more families have cars; increasing economic activity and geographical mobility mean there are likely to be more cars on the road. Activity 2, page 163 a The action suggests that pre-2003 car use was above the socially optimum level. This is because the Mayor’s action was designed to reduce car use. b Two other policies which could be used are to increase the cost of parking and to increase cycle and bus lanes in central London. Figure 1 MSB MSC MPC costs/benefits Activity 3, page 164 a The government does not provide IVF treatment in every region because of lack of resources. b NHS...
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...AS Economics Answers 4 Government intervention in markets 1 Remedies for market failure Activity 1, page 163 a It has declined. The state now owns less of the country’s housing stock. b That the state thinks there is less market failure in the housing market now than in 1979. use. Figure 1 shows that drivers do not initially pay for the negative externalities (external costs) they generate. A tax equivalent to the marginal external cost would push price up to PX. Road use would be reduced from Q to QX, the socially optimum level. In practice, it is difficult to estimate external costs. d Congestion and other negative externalities caused by car use will increase. Road use by cars is likely to continue to increase in the absence of government action because: the price of road use does not reflect its true costs; road use is income inelastic – as incomes rise, people use their cars more and more families have cars; increasing economic activity and geographical mobility mean there are likely to be more cars on the road. Activity 2, page 163 a The action suggests that pre-2003 car use was above the socially optimum level. This is because the Mayor’s action was designed to reduce car use. b Two other policies which could be used are to increase the cost of parking and to increase cycle and bus lanes in central London. Figure 1 MSB MSC MPC costs/benefits Activity 3, page 164 a The government does not provide IVF treatment in every region because of lack of resources. b NHS IVF treatment...
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...A GUIDE TO ARGUMENTS FOR AND AGAINST THE REPRODUCTIVE HEALTH BILL This matrix has been prepared by a group of Catholics who feel that a systematic comparison of the arguments for and against the reproductive health (RH) bill may still serve some purpose at this juncture. It may help to bring the debate from the emotional temper which has characterized it thus far, to a more rational temper in which both sides attempt to comprehend each other’s perspectives. It is hoped that this presentation will allow each side to view the other’s argumentation as the legitimate offering of reasons in good faith which ought to characterize a democratic process of deliberation. Such a process must be valued equally by all who are committed to living together in a democracy, be they Catholic or non-Catholic, pro- or anti-contraception. Questions in the final column are provided to aid further reflection, with a view to clarifying positions and, perhaps, to building compromises that are morally and politically acceptable to both sides. Eleanor R. Dionisio ISSUE ANTI-RH BILL PRO-RH BILL QUESTIONS I. LEGISLATION OF AN RH-BILL Necessity of RH Bill 1. Overpopulation 1. Overpopulation is not the problem. The problems are government corruption and the unequal distribution of wealth and resources. 1. Managing population growth is not the sole solution to poverty but is part of the solution. Are overpopulation and graft and corruption mutually exclusive issues? Or ought they to be addressed...
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...Beyond Legalizing Marijuana for Medical Purpose Angel Padro Devry University Professor Natalie Reid English 112 February 23, 2011 In this time of day we still have people that are against legalizing marijuana, but now it brings up discussion about marijuana if United States should legalized marijuana for medical purpose. Now you have to ask yourself something, why is marijuana illegal in the first place? If the government wants to legalize it for medical purposes, why not completely legalize it. So the question is if prohibition is here to protect us, does the prohibition really work? Where in today’s studies there no proof that marijuana is harmful to the American people, so let take a closer look on why marijuana should be legalized in Untied States. Couple years now the discussion of legalizing marijuana is coming up a lot more nowadays. It’s showing that marijuana is actually more useful than people think. So the government is thinking about legalizing marijuana for medical purposes. That raises some red flags, because everybody thinks it so harmful, but that’s not the case. “Actually it’s a proven fact that marijuana does not kill brain cells, it actually stimulates the brain cells and helps them grow.” (The Union-Adam Scorgie 2011) “Also from today polls there are no record death from Marijuana.” (CNBC-2011) Let’s take a look at a poll taking by “The United States government National Institute on Drug Abuse, Bureau of Mortality Statistics: TOBACCO……….400...
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...the current economy. • In this time of economic challenges, suggest two ways that the SBA might be of assistance to your small business. Explain how you would request this assistance. Small businesses have two major options for funding; a bank loan or pursue the Small Business Administration (SBA). A bank loan is standard, acceptance is granted based on a business plan, credit score, collateral and likeliness of success. The same process can be accomplished through the SBA but grants are also available. A grant would be the best option for the start of a small business because these monies do not have to be paid back where as payment of a loan is definite as well as interest. Even if a small business were given a grant in addition to a loan it would only benefit. The SBA would be helpful in today’s economy because they provide information of how to start a business and how to create a business plan. Also, information on government contracts, how laws could effect your business and taxes is available for anyone wanting to start a small business. • Compare and contrast three different types of entrepreneurs and state which you are most likely to emulate should you begin a small business. • Assess the impact of globalization and information technology on the creation of small businesses. Determine if and how these two trends have helped or hindered the growth of small business in the U.S. The three different entrepreneur categories include; social,...
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...transactions. Transfer pricing simplifies the accounting of transactions that take place between affiliated or related entities. Companies have freedom in valuing inter-company transactions. But, if strategically implemented, this strategy allows the company to save taxes and retain large amount of profits. Keywords: Transfer mispricing, tax-havens, Double Irish Dutch Arrangement Transfer Pricing Transfer pricing is the methodology used to set the prices for goods sold or services provided between related entities within an enterprise. Related entities are those which are under control of a single corporation and include branches and companies that are wholly or majority owned ultimately by the parent company. Generally, such a transfer price should be equal to the price which the entity would charge to an independent customer, an arm’s length customer. Such a price is termed as an “arm’s length price” (Transfer Pricing, Wikipedia, 2015). Financial accounting does not differentiate between affiliates and treats the corporate group as a single entity. But the federal income tax law treats affiliates as separate economic actors. This allows multinational companies a free rein to determine where their profits should be taxed, or more likely, not taxed...
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...companies use to get access to the customers and present their products to the potential customers. These have a very huge impact on the sales and the overall profit that the company will get. Every company must put into consideration all the legal and ethical issues to ensure that they attract more customers to buy their products hence maximizing their overall profits. Failure to put into consideration the ethical and legal issues in marketing will repel the customers from the company hence low sales and this may put any company out of business. The legal issues related to marketing and advertising include the laws and regulations that are laid down regarding marketing and adverting. Every state has statutes and general laws that dictate how marketing and advertising has to be carried out. From whatever area that the company operates, it has to follow the laws about marketing and adverting. Failure to follow the laws may put the company in legal problems which may be very costly and affect their profit margins. Such legal problems may also destroy the reputation of a company making the potential customers as nobody wants to be involved with the products of a company that has legal problems concerning their marketing and advertising strategies. Ethical considerations regarding marketing aim at regulating exploitative marketing techniques which most competitors use to outdo their rivals. For instance, a company can reduce its costs of the products to...
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