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Does tax cut increase aggregate real income by the amount of the tax reduction?
Wiki User
∙ 14y ago
It depends on who gets the tax reduction. When poverty stricken people receive a tax reduction, the money stays in their community. The latest experiment with trickle down economics did something else. A number of rich people invested their money in opportunities in China and India. The money trickled down to the people in those countries. It did not increase anyone's income in the United States except the original recipient.
Wiki User
∙ 14y ago
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An economic policy that advocated a reduction in government spending and cuts in personal income taxes is?
reagonomics
Which of these is the amount of income individuals have after they save and pay their taxes?
Disposable income
When was the last federal income tax increase?
1998
Where do local governments get their least amount funding from?
Income Tax
Which type of tax is collected by a mediating agent and then forwarded to the government?
a dollar amount that reduces the amount of taxable income
Why GDP equals aggregate expenditure and aggregate income?
GDP would be the amount of gross income a person or company receives. This would be the amount of income minus the amount of expenditure on things like bills.
What is aggregate income?
The total amount that households and businesses receive before taxes and other expenses are deducted is called aggregate income.
With this tax as income increase the amount of income tax also increase?
progressive
What tax as income increase the amount of income tax also increase?
progressive
An increase in aggregate demand is most likely to be caused by a decrease in?
The tax rates on household income.
What happens to aggregate income and withdrawals when exports increase?
there is no answer hahahaha / oh very intelligent - well done !!
Why would a tax cut would shift the aggregate demand curve outward showing an increase in aggregate demand?
Personal taxation is a amount taken by the Government or State from an individuals income. A cut in taxes would mean that people effectively have more income, therefore more income can be spent on goods and services. This ability for consumers to spend more means that they will demand more, shifting the aggregate demand curve to the right. It is the same in a business sense. If there was to be tax cuts for businesses, businesses have the ability to spend more in turn increasing aggregate demand. ~MB
What is expansionary policies?
Expansionary fiscal policy is an increase in government spending or a reducing in net taxes which increase aggregate output/income (Y). +G or -T = +Y
What is equilibrium output?
It is the output of an economy that equates aggregate supply with aggregate demand.
What is expansionary fiscal policy?
Expansionary fiscal policy is an increase in government spending or a reducing in net taxes which increase aggregate output/income (Y). +G or -T = +Y
Does an increase in the income tax rate increase the break even point?
No, an increase in the tax rate only affects a positive income; at break even there is no amount to tax
What are tax deductions and credits?
A deduction reduces the amount of income that is subject to tax, and a credit represents a direct reduction in the amount of tax liability
