Under a contractionary taxation policy, the government can reduce the deficit by

Asked by maham237 @ 18/12/2020 in Social Studies viewed by 456 People

increasing taxes. reducing taxes. increasing spending. increasing inflation.

Answered by maham237 @ 18/12/2020

Answer:

A. Increasing taxes

Explanation:

Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.

There are three (3) types of taxation used by the government, these are;

1. Progressive taxation: it involves charging individuals having higher incomes a higher percentage of their total income.

For instance, John pays 30% on $70,000 and Joyce pays 10% on $45.000.

2. Proportional taxation: it involves charging both lower and higher income earners equally in proportion to their income.

For instance, John pays 20% on $50,000 and Joyce pays 20% on $36,000.

3. Regressive taxation: it involves charging individuals with low incomes a higher percentage of their total income and vice-versa.

For instance, John pays 15% on $60,000 and Joyce pays 20% on $36,000.

A contractionary taxation policy is a policy which typically involves the government reducing (cutting) its spending or increasing taxes in order to reduce deficit. Thus, this policy contracts the economy and as such leading to a reduction in the amount of money available for consumers and businesses to use or spend.

Hence, under a contractionary taxation policy, the government can reduce the deficit by increasing taxes.

A typical glass of wine contains about 21 grams of alcohol. consider a 101-pound woman, with approximately 6 liters (6000 milliliters) of blood, who drinks two glasses of wine. complete parts (a) and (b) below. a. if all the alcohol were immediately absorbed into her bloodstream, what would her blood alcohol content be?

Asked by maham237 @ 10/01/2021 in Social Studies viewed by 1010 persons

Under a contractionary taxation policy, the government can reduce the deficit by

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