What are the various types of taxes used by governments? Who are the actors that make...

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What are the various types of taxes used by governments? Who arethe actors that make funding decisions? How are they accountable tothe public? How does the public influence this process? Why istaxing and spending so controversial?

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The government does not have its own money Itsreceipts come from individual incometaxes corporateincome taxes estate andgift taxes social insurance taxes andexcise taxes All US government spending can bedivided into three categories mandatory spending discretionaryspending and interest on federal debtThere are mainly two types of Taxes direct taxand indirect tax which are governed by two different boardsCentral Board of Direct Taxes CBDT and Central Board of Exciseand Customs CBECThe three types of tax system are theproportional tax the progressivetax and the regressive tax Aproportional tax imposes the same percentage oftaxation on everyone regardless of income The second tax the progressivetax imposes a higher percentage rate oftaxation on those with higher incomesPrimarily through the supply side High marginal tax rates candiscourage work saving investment and innovation while specifictax preferences can affect the allocation of economic resourcesBut tax cuts can also slow longrun economic growth by increasingdeficits The longrun effects of tax policies thus depend not onlyon their incentive effects but also their deficit See Answer

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