Economics with Taxation

In: Social Issues

Submitted By marylord
Words 261
Pages 2
West Visayas State University- Himamaylan City Extension Campus
Bgry. Caradio- an Himamaylan, Negros Occidental

Answer the following questions in a 1 whole yellow pad. To be submitted next meeting. A. Review Questions 1. What is demand? 2. How could the Law of Demand help the consumer in deciding how many units of a commodity to purchase? 3. Why does demand rise when buyers’ income rise? 4. How does knowledge of the demand schedule help in the examination of the economy?

B. Activities. 1. Find an empty box. Wrap it so that it becomes attractive to buyers. Explain to the class (next meeting) how the manner in which a commodity is wrapped or packed can affect demand for that commodity. 2. How would you decide in the following situation?
You saved some amount of money from your daily allowance because you were planning to buy flowers and give it to special friend during Valentine’s Day. But a few days before Valentine’s Day, you had a school project. You had no money to buy materials for the project except the money you saved for the flowers. Which would you buy: the flowers of the materials for the project?

C. Draw the demand curve of the following situation. 1. The price of sugar will increase next month. What will happen to the demand for bread this month? 2. What would happen to the demand for Havianas slippers if the price of Ipanema slippers were doubled? 3. Rice farms were damaged by the typhoon Yolanda, what would be the demand for rice?

God…...

Similar Documents

Taxation

... I.GENERAL PRINCIPLES ( THE POWER OF TAXATION ( Definitions: 1. Taxation: Power by which the sovereign raises revenue to defray the necessary expenses of the government from among those who in some measure are privileged to enjoy its benefits and must bear its burden. 2. Taxes: Enforced proportional contribution from properties and persons levied by the State by virtue of its sovereignty for the support of government and for public needs. ( Characteristics of Taxes: 1. forced charge; 2. generally payable in money; 3. levied by the legislature; 4. assessed with some reasonable rule of apportionment; 5. imposed by the State within its jurisdiction; 6. levied for public purpose. ( Theories or bases of taxation: 1. Lifeblood Theory Taxes are the lifeblood of the nation. Without revenue raised from taxation, the government will not survive, resulting in detriment to society. Without taxes, the government would be paralyzed for lack of motive power to activate and operate it. (CIR vs Algue, Inc., et. al.) Illustrations of Lifeblood Theory: a. Collection of taxes may not be enjoined by injunction. b. Taxes could not be the subject of compensation and set-off. c. A valid tax may result in destruction of the taxpayer's property. 2. Necessity Theory Existence of a government is a necessity and cannot continue without any means to pay for expenses. a. Marshall Dictum “ Power to tax is the power to destroy” – describes the unlimitedness of the......

Words: 3955 - Pages: 16

Taxation

...Taxation Taxation - A means by which governments finance their expenditure by imposing charges on citizens and corporate entities. Governments use taxation to encourage or discourage certain economic decisions. For example, reduction in taxable personal (or household) income by the amount paid as interest on home mortgage loans results in greater construction activity, and generates more jobs. Characteristics * Enforced contribution. * Generally payable with money. * Proportionate in character. * Levied on persons or property * Levied by the state which has jurisdiction mover the subject. Advantages * Corrects market failure.  * Companies are in favor of it as they pass on the costs to their consumers. * Provides public goods. Disadvantages * Can become excessive in certain ways, discouraging investment or work. Advantages and disadvantages of taxation to redistribute income Taxation is a tool commonly used by government as a means of redistributing income amongst its citizens. In some instances, taxation can have a positive effect on the redistribution of income, other times, it can do more harm than good. Taxation helps greatly in the redistribution of income as it gives the government funds which they can use to fund public services. In countries that have solid taxation systems, revenue from taxes will be great. The more revenue there is coming from taxes, the more money there will be left over for the government...

Words: 406 - Pages: 2

Taxation

...Extra-Credit Retirement Options available to employees without a plan provided by employer and plans available to the Self-Employed. Figuring out the details of what retirement options are available for ones’ self has become a topic of interest due to recent economic and governmental changes. To better investigate retirement options, it may be wise to deal with a scenario. If James and Dena are married, both under the age of 50, with two dependent children, and working for Daisy Inc., what options would be available to them if there was no retirement plan in place by the company? Many firms typically offer plans Qualified Pension and Profit-Sharing Plans that include 401(k) plans and stock bonus plans; however this is not the case for James and Dena. Here, this couple would need to consider Individual Retirement Accounts (IRAs). These fall under the main categories of Traditional IRAs (where there are fully deductible IRA contributions for the amounts being the lesser of $5,000 or earned income- the amount of $6,000 is not applicable to this couple due to their age), or ROTH IRAs , also known as “back loaded IRA” ( where the tax benefits are not received at the beginning of the IRA, but are realized at the end). It is generally suggested that persons go ahead with ROTH IRAs rather than Traditional IRAs as there are more benefits to be had. While James’ Traditional IRAs would grow tax-deferred, (he would not pay taxes on contributions until withdrawn, at retirement),......

Words: 1304 - Pages: 6

Economic Thinking to Government Spending and Taxation

...guideposts of economic thinking to government spending and taxation Well from reading this week reading, the economic way of thinking requires more than just making decisions on plain information. For it requires government incorporating certain guidelines such as the building blocks of basic economic theory into their thought process when making decisions. There are eight principles that characterize the economic way of thinking; however, I will only identify four. According to the textbook” “One of the first guidelines is referred to as the use of scare resources is costly, so decision-makers must make trade-offs. Economists sometimes refer to this as the “there is no such thing as a free lunch” principle, it is important to recognize that the use of scarce resources to produce a good is always costly” (Gwartney et.al, 2013). In economics, the opportunity cost of an action is the highest valued option that is given up when choices are made in economic thinking. 2. When government make decisions, they should make decisions on the margin of how much it is going to cost and which option seems like the most economical way. “When making a choice between two alternatives, individuals generally focus on the difference in the cost and benefits between alternatives. Economists describe this process as marginal decision-making, or thinking in such cases” (Gwartney et al, 2013). 3. Having information on the economic factor that helps government make better decisions in......

Words: 377 - Pages: 2

Taxation

...E-commerce Taxation: Towards its Legalization Have you ever wanted to buy something with just one click without having to pay much as the usual? With the easy access and affordable prices, online purchasing has become the most convenient way of shopping for most teenagers. The popularity of the Internet particularly Facebook, Instagram and other social networking sites attracted many retailers to invest their businesses online without having to pay taxes like any other retailers do. By this, e-commerce continues to grow with the advancement in technology as it overshadows the traditional way of running a business by the insignificant purpose of the physical interaction between the buyer and the seller. E-commerce in itself is classified into three types: business-to-consumer in which online stores sell products to final consumers; consumer-to-consumer just in the case of eBay and Amazon and; business-to-business which involves job recruiting, online advertising, credit, sales, and the like (U, 2002, p.6). With the emergence of e-commerce, brick and mortar stores are slowly starting to degrade, thus alarming the government on the collection of lesser tax since the law regarding electronic commerce taxation is still being debated. This income generating phenomenon has been an attractive target to the government to cope with its huge loss on tax collection. So why pay tax? Richard Carlson (2002) once said, “At tax time, it helps to remember that if your tax obligation has......

Words: 3200 - Pages: 13

Economic View of Tobacco Taxation

...Tobacco Taxation 1 Tobacco taxation is a hot topic and all 50 state governments have enacted taxes on cigarettes, and many have raised their taxes several times. Taxes on cigarettes are a way governments can achieve two social objectives; the first objective is to reduce the number of citizens who smoke. The government issuing the cigarette tax hopes that the rise in the cost of a pack of cigarettes will persuade people to quit smoking. The second objective is to raise government revenue. A cigarette tax, like any other tax, increases the amount of revenue governments can spend on social programs. Where there’s smoke, there’s taxes — especially for New Yorkers. In a 2010 budget move officials say will generate $440 million in revenue, the state legislature passed a bill that gave New York the highest cigarette tax in the country. On July 1, 2011 every pack sold in the state cost an extra $1.60, raising the total state tax to $4.35, pushing the average cost of a pack up to $9.20. For New York City residents, the cost of a pack will now come out to close to $11 — a $2 rise from just over a year ago. The $440 million in revenue will benefit health care programs, AIDS drugs subsidies, tobacco cessation programs and $71.6 million will go to the state cancer research center in Buffalo. Supporters also applaud the health benefits, saying it will reduce the number of smokers by tens of thousands of people. Tobacco consumption is the leading cause of preventable death in......

Words: 1014 - Pages: 5

Taxation

... TAXATION. Name: Institution: A) Effect of Taxation. Taxation is a system of levying taxes on various types of earnings, income and/or purchases. It is an essential part of a modern state whereby the government obtains revenue, which is used for provision of education, health care and living benefits to a range of its citizens (Sullivan 2003).  The UK tax system has several incompatible objectives, for instance redistribution of income and wealth creation (through tax breaks). The government must take into account the issue of fairness in taxation, if it is to provide an acceptable tax system in the United Kingdom (Wales 2008). The social function of taxation is to ensure that there is wealth redistribution, in order to create a fair and harmonious society. According to Adam Smith, fairness in taxation promotes morality and equity in free market economics (Sullivan 2003). Fairness in taxation ensures that market failures are tackled. A fair tax regime ensures that the revenue collected is shared equitably and appropriately through judicious expenditure. According to Adam Smith, equity in taxation implies that the taxpayers pay taxes that are proportionate to their income, while the allocation of government resources does not adhere to this proportionality. A fair tax has the following four attributes: equity, efficiency, certainty and convenience. Equity ensures that the tax has a reasonable impact on the taxpayers. Equity is......

Words: 2268 - Pages: 10

Taxation

...Taxation My name is Sherri Washington and I am the new CEO of “Taxation”. The company’s mission is to implement multiculturalism associated with the organization’s social performance; while visualizing their objectives and goals. So why was the business steadily declining? I knew that this was a corporate issue and every Stakeholder as well as I; the CEO had to build a better relationship amongst each other if we wanted a successful organization; while serving our community. Corporate and all levels of management had to become socially responsible for the good of the market and non-market Stakeholders, while attaining economic envisions. I could not allow the organization to be outsourced to the evolving economies of the employees, customers, investors, suppliers, community and other environmental groups. Therefore, through globalization the company’s interaction model had to implement a strategic plan between the company and the slew of stakeholders finding out the interest, desires, goals, power and how it can increase the productivity through social performance and responsibilities. Building a positive environment through strategic innovation will induce a more ethical workplace. If the stakeholders focus on the ethical and social challenges that we are going to encounter as a whole, it will allow the organization to become one of the most revealing organizations around. As a multicultural, diversified company, we can become one of the best businesses society has...

Words: 328 - Pages: 2

Taxation

...Where the taxable income exceeds Rs.4,550,000. 20.00%”; Share this: Sources of taxes in pakistan: Existing Sources of Revenues1. Property Tax 2. Motor Vehicle Tax 3. Entertainment Tax  4. Cinema Tax  5. Capital Gain Tax  6. Professional Tax. 7. Welfare Cess.  8. Hotel Tax. 9. Duty on spirits.  10. License Fee for sale of Foreign Liquor. 11. Permit fee on Liquor.  12. Distillery fee. 13. License fee on denatured spirit.  14. Permit fee on denatured spirit. 15. Assessment fee for sale of liquor. 16. Trade Tax 17. Collection of Income Tax and withholding Tax on behalf of federal Government form motor vehicle owners. |   | Tax system of pakistan Tax System in Pakistan | Federal taxes in Pakistan like most of the taxation systems in the world are classified into two broad categories, viz., direct and indirect taxes. A broad description regarding the nature of administration of these taxes is explained below:Direct TaxesDirect taxes primarily comprise income tax, along with supplementary role of wealth tax. For the purpose of the charge of tax and the computation of total income, all income is classified under the following heads: * Salaries * Interest on securities * Income from property * Income from business or professions * Capital gains; and * Income from other sourcesPersonal TaxAll individuals, unregistered firms, associations of persons, etc., are liable to tax, at the rates ranging from 10 to 35 per cent.Tax on CompaniesAll......

Words: 1218 - Pages: 5

Taxation

...Taxation is a means by which government finances their expenditure by imposing charges on citizens and cooperate entities. Some of the key decision making factors of taxations are: adequacy, broad basing, efficiency and equity. The price elasticity of demand is a units-free measure of the responsiveness of the quantity demanded of a good to a change in its price when all other influences on buyers’ plans remain the same. The income elasticity of demand is a measure of the responsiveness of the demand for a good or services to a change in income, other things remaining the same. VAT is an indirect tax where the tax is charged as a percentage of the value of a good. The amount of VAT imposed on a product depends on the elasticity of demand for the product. If the demand for the good is very elastic then the price will not increase as much when the tax is imposed but the quantity demanded will fall significantly. Price S + tax S £1.00 D1 £0.80 2 8 Quantity In this case, we see that the price has only risen a little by £0.20 compared to the amount of the tax. The main burden of the tax has fallen on sellers; sellers have to pay the entire tax which is only compensated by a small increase in price. This is the reason why indirect taxes are generally not levied on goods with elastic demand as the tax revenue will be relatively small. If the demand for a good...

Words: 1060 - Pages: 5

Taxation

...of The Group’s overall income. Re-incorporating the headquarters from the US to the UK means that they have an economic reasoning for the shift as they make a large proportion of the company’s income in Europe and specifically in the UK. Also, moving the headquarters to the UK means that they have access to the global, European and domestic financial markets, which places them in a good position to make managerial decisions. Politically, the country is stable, which means that all management activities can be transferred in a reliable way to the newly established headquarters. Furthermore, this stresses that there is a stable legal framework in place for the continuation of a steady and secure transfer of headquarters. Tax reasons: In relation to the tax reasons, I must identify whether the following variables are being taken into consideration: tax rate, territorial system, lack of CFC legislation, taxation on passive income and access to multilateral agreements. The Group will be moving from a high income tax rate (US) to a low tax rate (UK). In addition to the restructuring it would shift from a worldwide system to a territorial system, which means that as a resident company it would be subject to tax in respect of income derived from the source of income. Furthermore, in relation to domestic rules there is only moderate CFC legislation in the UK and taxation of passive income when it comes to dividends. Evaluating the options: By taking into account the......

Words: 785 - Pages: 4

Taxation

...INCOME TAXATION GBS 1 OBJECTIVE: The students at the end of the module should be able to distinguish the different kinds of taxes, the nature, scope, basis, theory, purpose, situs, limitations, subject of taxation and escape from taxation, the powers of the sovereign, characteristics of taxes, and the basic principles of a sound tax system, as well as the different taxable income and deductions. Definition of Terms TAXATION – is a power inherent in every sovereign state to impose a charge or burden upon persons, properties or rights to raise revenues for the use and support of the government and to enable it to discharge its appropriate functions. - It is a mode of raising revenue for public purposes. (Cooley) TAX – is a forced burden, charge, imposition or contribution assessed in accordance with some reasonable rule of apportionment by authority of the sovereign state upon person, property, or rights exercised, within its jurisdiction to provide public revenues for the support of the government, administration of the law or payment of public expenses. INCOME TAX SYSTEM OF THE PHILIPPINES • GROSS INCOME TAXATION-where a Final Tax is imposed on the gross amount of specified types of income. Example: Interest, royalty, prize, dividend, capital gain • NET INCOME TAXATION- certain deductions are allowed and subtracted from the aggregates of income not subject ot final tax; the tax is computed based on the resulting net income. THEORY AND BASIS OF TAXATION > necessity to defray......

Words: 16260 - Pages: 66

Taxation

...standards are the main issues discussed within this case. This case may be used in international accounting courses at both the undergraduate and the graduate levels. It is important to note that this case follows ‘The Sate of Accounting in Armenia’ by Bloom et al. (1998). 2. EGYPT Egypt is a developing nation at the beginning of its transition to a market economy. Egypt, one of the largest economies of the Middle East, is undergoing liberalization to a large number of its major economic sectors. This transition makes Egypt a relatively attractive market and one that continues to grow. The Egyptian Stock Exchange is considered one of the oldest stock exchanges dating back to 1882. It steadily grew, and it was ranked the fifth most active market in the world in the 1950’s (ACCE, 1995). By the late 1950’s and early 1960’s, nationalization started taking place in various economic sectors of Egypt. This resulted in a socialist era. Accordingly, there was a trend towards moving to central economic planning and an expansion out of the public sector. As a result, the role of the Egyptian Stock Exchange decreased until it became inactive for approximately thirty years. In the mid 1970’s, the Egyptian government had followed a so-called ‘Open Door Policy’ to liberalize the national economy and it initiated several improvements to the accounting standards and practices. The new policies revived the accounting profession in Egypt and started to impact the regulation in......

Words: 5622 - Pages: 23

Taxation

...Estate Taxation in Denmark Question 1. 1. What are the main factors about a real estate that is influencing the sales price? Answer: The factors that I think are influencing the the sales price are: * Location (Copenhagen or Vejen) * Size of the building and land * Condition of the building * Population growth (will effect the demand) * Interest (if low interest then more people can afford to buy ergo more demand) * Economic situation in the country is there ongoing recession or bubble growth * Sales situation (Is it a person that is in a rush to liquidate the real estate or is it a person that will wait for the best price, is it a sale between two people that know each other well, is it a bank selling a foreclosure property) * Unemployment rate * Size of the market (number of sales in a given time and location) * Market price (lets face it sometimes the market price is not based on any locical idea) 2. Which of these factors would you think are available in some data sources? Which of them are not? Answer: The factors that are in some datebases are: * Location * Size of the building * Population growth * Interest The factors that are not: * Condition of the building and land * Economic situation (there is probably not any one fixed number but it will derived from other key points) * Sales situation, this probably needed to be checked via opinon poll * Market price (Same as economic......

Words: 769 - Pages: 4

Taxation

...Aljone Bandola de la Cruz Basic Economics with Taxation III-BSFi 2nd Sem. A.Y. 2015-2016 Philippine Profile: Its Current Economic Status, Governance/Performance, Environmental Situation, and the Social Unset and Crimes The Philippines never had it so well, but with a slowing global economy and an election coming up this year 2016, what can it expect from the future? Does the country can still be able to be at greater heights? Our country has accustomed a private enterprise economy both in policy and in practice. Primarily, its governance intervened through fiscal and monetary policy and in the exercise of its regulatory authority. Remarkably, Philippine economy has been performing creditably since it weathers integration through global and regional economies. Current administration has been working to increase the budgets for different economic sectors such as education, health, cash transfers to the poor through 4Ps, other social spending programs and relies on the private sector through its Public-Private Partnership Program to help fund major infrastructure projects such as the nationwide road widening which still continues until this present time. Philippines has also financial downturns better than its regional peers due to minimal exposure to troubled international securities except from the fact of the rivalry with the neighboring countries about the Spratleys Islands, lower dependence on exports, relatively resilient domestic consumption, a rapidly......

Words: 1098 - Pages: 5

Read more | Men Hoon Shahid Afridi | [TV-Variety] 平井堅 Live Selection (MTV HD 2017.07.08)