ECN 204 Lecture Notes - Lecture 7: Procyclical And Countercyclical, Indirect Tax, Firefighter
15 Dec 2015
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Document Summary
Sources of revenue: taxes, fees, tolls, fines and penalties, profits from crown corporations, lottery and gambling. Taxes: a compulsory payment from individuals and corporations to the government without a quid pro quo: direct tax i. Income tax collected by federal government spent by. Federal and provincial government: property tax collected by municipal government spent by municipal government, indirect tax: hst, gst collected by federal government spent by federal, pst collected by provincial government spent by. Federal government social security (pension, ei), transportation to provinces, interest payments. Municipal government garbage collection, snow removal, firefighter, parks. Fiscal policy: use of government tools to attain economic goals. Recession expansionary fiscal policy: increase in government expenditure deficit budget, decrease in taxes. For advocate of small government: decrease in government expenditure recession, decrease in taxes inflation. Inflation contractionary fiscal policy: decrease in government expenditure surplus budget, increase in taxes. For advocate of big government: increase in government expenditure recession, increase in taxes inflation.
