Political Science 2211E Lecture Notes - Lecture 7: Tax Bracket, Flat Tax, Progressive Tax
18 Nov 2015
School
Department
Course
Professor
Document Summary
Consumption tax tax on consumer goods and services like a flat tax: i. e. pst, gst, hst, used to lower income and corporate taxes. Wealth taxes: tax assets rather than income, capital gains tax portion of gain that must be counted as income, tax increases in capital i. e. shares paying dividends, increase in value, etc. Corporate tax: on the income, or profits of a corporation, deductions will include and business expenses before taxable incomes, capital tax on corporate assets. Taxes and demand: a decrease in taxes will increase aggregate demand, people have more money to spend on goods and services, raise in taxes will lower aggregate demand, less money to spend people will demand less goods. If government spending goes up, aggregate demand will increase: more money in economy government buying more and increasing ad. If governments cut spending, takes money out of economy and lower ad.
