Description
For each of the following scenarios, discuss the implications for individual and social welfare as well as for the aggregate economy. Then address the question of what will be the possible and/or likely effects on the rate of economic growth. Explain your conclusion with reference to the economic concepts and measures covered in the module.
- The National Diet of Japan passes an investment tax credit, which reduces a firm’s tax if it installs new machinery and equipment.
- The Prime Minister of Thailand passes a law that allows taxpayers to reduce their income taxes by the amount of state sales taxes they pay.
- The National People’s Congress provides more funds for low-interest loans to college students.
Explanation & Answer
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Running Head: IMPLICATIONS OF TAX POLICIES
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Implications of Tax Policies
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IMPLICATION OF TAX POLICIES
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The implication of Policies on Individual, Social Welfare, and Economic Growth
Individual and social welfare, have particular impacts on a country’s economic growth,
for example, provision of goods and services, may not be available, or if available, some
citizens may not access them. This article examines the impact of installing machinery, the
impacts of reducing the taxpayer’s income, and the provision of low-interest loans to college
students.
National Diet of Japan’s reduction of firm’s tax credit, can have an impact on the
individual, the economy and the country’s social welfare, for example, According to Carbaug...
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