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Technically, governments impose tax because they want to improve the living standards of the people in their country. Ideally, a tax is a payment made by the people to their government so that it provides you with necessary goods otherwise not provided by the private sector (businesses and stuff). These goods are called merit goods and they include public transportation, health, education, etc. The government also uses that tax they collect to improve the conditions of a country, they are used to create more jobs (example: by building a school, they do not only create a job for the teachers, but they also employ the building company, creating more jobs in the economy). The government has 5 major aims, these are: Economic Growth (%increase in the GDP over one year), Low Unemployment, Low Inflation, Equilibrium of the Balance of Payments, and Redistribution of Wealth. To reach these aims, the government imposes taxes.
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What are other ways that the federal government imposes costs on state and local governments?
federal and state taxes are one example.
What can you tell me about income tax?
Income Taxes are taxes that a government imposes on all people and businesses that live within its jurisdictions. These monies are key funds that the government uses to fund its programs and serve the people.
Why the federal government imposes taxes?
The federal government imposes taxes upon its constituents as a means to pay government officials for their efforts, to subsidize public works projects and provide funding for government agencies. The 16th Amendment to the US Constitution allows the government to levy taxes on forms of income as it sees fit. Simply stated, these income tax provisions act as a transfer and redistribution of wealth, indeed an inefficient one.The government lowered income tax rates on the higher incomes.
Who imposes taxes?
The government. They use the money to build highways, rail networks, schools, defense (army, navy, air force), etc.
Who imposes an embargo?
The Government does.
What will happen to the supply curve when the government imposes heavy indirect taxes and puts price control on a commodity?
the supply curve will fall if heavy indirect taxes are imposed. A price will worsen the burden of suppliers which force them to cut the supply of goods.
How much does fireworks cost in England?
In England, Fireworks are not cheap items. British Government imposes heavy taxes on fireworks and there is a very strict policy for using fireworks in place in England.
Is there a limit on sales tax?
Only that which a government imposes.
What does the constitution imposes responsibilities or rights on which groups?
government officials and government employees
Who gets the fines when the government imposes a fine or settlement?
The government generally keeps the money.
What are the difference between LEVY and TAX?
Tax is a charge that government imposes on the property to keep control over the property by the owner and levy is the charge that government imposes in case of defaulting tax.
Why government imposed tax?
Taxes are levied and collected in order to 1) pay for public services such as government, police and roads; and 2) to regulate the amount of goods exchanged such as taxing imported sugar to promote domestic sugar consumption.
