Essays on Government Revenue

Market Structure

In simple terms, market structure refers to the classification of the various types of markets, based on their unique features on how they allocate prices of a given product in the market. The aspect is primarily classified into two, which include perfect and imperfect market.

Oligopoly

Refers to a type of market structure where there are few sellers in a given economy with many buyers for the commodity. With oligopoly, the sellers have an influence on the commodity price in the market and can significantly affect competition. An example of a company to indicate the above case is the mobile ...

Government budget provides the projections of revenues to be received and expenses to be incurred by the government in a given financial year. The main sources of government revenue are levies, taxes, returns of government projects and fines. In many cases, the government budget is at a deficit because the amount of expenditure to be incurred is more that revenue projected revenue. Thus, the government has an option of financing the deficit through borrowing or applying austerity measures to cut down its projected spending. The government can also apply austerity measures when debt level reaches unmanageable high level. Everyone ...

Introduction

The US idea of insourcing jobs back into the country is a right direction. Moreover, bringing back of jobs to the state will increase the number of investments and capital. Also, it will increase the number of employment opportunities in the country thus rendering the economy and workers productive and creative. Bringing jobs back is also a good move for the US because it is an added advantage to the Government revenue and the economic growth.

Reasons Why American Companies Move Back Jobs

Insourcing brings lots of improvement to the lives of the Citizens and the country’s economy. The US decided to bring back jobs ...

The American Civil War led to the reduction of government revenue and large debts amassed from the financing of war operations. One strategy that the government implemented was using taxes to raise the funds from the public. This approach led to certain products being taxed, for this reason, one of them being tobacco. However, with time, these taxes were effectively recalled with the exception of cigarette taxes, which have remained to the present time. Tobacco has been identified as one of the oldest crops in the U.S and has also been cited as one of the most successful enterprises, ...

Introduction

Tax forms one of the major sources of government revenue; it contributes to economic growth and development as well as the overall prosperity of a country. Based on the method of collection, a tax system can be flat, regressive or progressive. The progressive tax system entails increasing taxes with an increase in individual or household income. The regressive system involves decreasing tax as income increases while the flat tax is a system where everyone pays the same tax irrespective of the income (Roach, 2003). The tax system adopted in a country depends on set objectives, its impacts on taxpayers, ...

A developed country is known by the growth and the level of its economy. Economy of the United States is the world's largest single national economy. The United States' nominal GDP was estimated to be $17.1 trillion in December 2013. Budget deficit affects the taxpayers to a great extent this is because government spending exceeds all the revenue. This forces United States government to increase taxes on the taxpayers. The deficit affects taxpayers forcing them to dig deep into their pockets to increase government revenue. This will, therefore, enable the government plan for its appropriated financial activities. The government will ...

Austerity Measure

The growth path of an economy does not follow a smooth trajectory. It is composed of a number of short-term and long-term fluctuations. The magnitude and duration of such fluctuations are varied. The government uses its two important tools, the fiscal policy and the monetary policy to smoothen out this jagged path to some extent. During periods of boom, that is, when the economy experiences high rate of growth with low unemployment rate and high income, the government follows a contractionary fiscal and monetary policy. In times of slump when the economy is under a phase of deceleration in growth with low output ...

Cookbooks are products that are thought to create health problems to many people. As a result, the government has resulted in taxing the product as a way of reducing the consumption of the cookbooks. This type of tax is called sin tax. It is a tax that is usually imposed on products that are thought to be harmful to the people. Similar tax is levied on cigarettes and alcohol. When sin tax is levied, the supply of the cookbooks reduces. This is because the price increases hence the demand reduces because the consumers shift to other similar products. Therefore the producers are ...

Legal and Ethical Issue

Retirement income in the United States (US) fundamentally comes from Social Security. More than a third of the elderly beneficiaries of Social Security rely almost entirely on it for their income (more than 90%), making up the total of two-thirds of them whose reliance on it accounts for more than half their income (Brossoie, 2010; NASI, 2014; Poterba, 2014). Having kept around 22 million Americans out of poverty, Social Security remains an integral program favorably viewed by many (Poterba, 2014). In fact, findings from a study gauging public opinion from different generations conducted by the National Academy of Social Insurance (NASI) ...

Introduction

In the second half of XX century a trend towards scaling up and strengthening the role of the state in the economic sphere. At the same time it is recognized that the highest efficiency is achieved in a competitive market mechanism. Therefore, the state aims to not adjust the market mechanism, and to create conditions for its free operation, providing a high level of competition. Competition should be wherever possible regulatory influence of the state, and wherever it is needed. Most economists converge in the understanding that the "invisible hand of the market" is required to be supplemented by the "visible hand ...

Introduction

The aspect of healthcare is one of the crucial elements that make or break a nation’s stability. Healthcare systems vary widely from one country to another and many international health organizations have been concerned with determining which countries have done well in taking care of their populace and which ones have done poorly over the years. Comparing and contrasting two countries whose healthcare systems are highly different from one another may help us understand better (1) the advantages of a country with a good healthcare system and policy, (2) the strategies that make a healthcare approach successful, and (3) what the countries ...

NEPAL

Income level: Low income Gross Domestic Product: GDP at purchaser's prices is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is the total value of finished goods and services produced in the country measured in monetary terms ("Gross Domestic Product (GDP) Definition | Investopedia", n.d.).

Nepal’s GDP Status in 2012: 18,962,962,963 US$

Population: Population Status of Nepal in 2012: 24.47 million GNI per capita: GNI per capita (formerly GNP per capita) is the gross national income, converted to U.S. dollars ...

IS-LM model also known as the Investment Saving-Liquidity Preference Money supply model is a macroeconomic tool that shows the interrelationship between interest rates and the actual output, in the money market as well as the goods and services market. The point at which the IS and LM curves intersect is known as the general equilibrium. This is an extremely fundamental tool and has been used by different economists in a bid to explain the various macroeconomic concepts that define how activities flow in the goods and services market and monetary market. As a critical tool among monetarists and Keynesians the IS-LM model ...

1. Liberal democracies today practice one of two forms of electoral systems: single-member-district or proportional representation. Single-member-district systems are further divided into plurality and majority systems. Plurality-based single-member-district systems, or “first past the post” systems, are used by a minority of liberal democracies and involve a single representative elected to represent a constituency. The candidate who receives the most votes wins the seat and all of the votes cast for other candidates are “wasted,” as these votes do not count towards any other candidate. This encourages the strength of a small number of parties (usually two), as voters do not want their votes ...

The Huffington Post

Caroline Fairchild Summary In this article, Caroline Fairchild addresses the controversial issue of legalizing marijuana from the economic viewpoint. According to Fairchild, the legalization of marijuana is associated with more positives than negatives. According to the information provided by the article, the cost benefit analysis justifies the legalization of the drug for recreational purposes. The main players in the article include the federal government, the state government, the lawmakers, the consumers of marijuana and economic analysts. The article prominently cites the work done by Cato research, a renowned think tank in favor of the legalization efforts. Additionally, the ...

Being the world’s superpower, a country ought to have a good economy, strong military capability, high per capita growth, science and technologies, and influence in the global community. One of the things that had aided China’s phenomenal economic growth is international trade and foreign direct investment (Sigurdson 37). These two policies helped China in gaining international financial earnings such as the dollar, which helps in making the country independent. In addition, China is known for undervaluing its currency in order to export more of their goods and services to the international market (Gifford 87). This shows that the China has ...

Abstract

Germany has been a model economy for the Euro zone with its fiscal frugality which has maintained the country on an impressive growth while the other European countries were struggling with debt crisis. However, despite a favorable GDP growth and low unemployment, the country is facing challenges with high inflation. The current situation is a result of combination of both poor decision making and market sentiments in the region. In addition, the country’s greatest debt is in the hands of the financials and non financial corporations with each having 87% of the debt while government holds 83%. In relation to the ...

Does increasing Cigarette Tax Help in Reducing Number of Smokers? To what extend does it decrease smokers if it leads to decreased smokers?

Abstract

Many governments have continuously increased i cigarettes taxes for the last decades. However, governments have been recording increased revenue from cigarette taxes despite decreasing number of smokers. The revenue raised has been used to finance ant tobacco campaigns across the country. Tobacco is a habit forming commodity this makes adults who have been smoking for long not to change their habits in short run. Researchers have given two main reasons for their behavior. First and foremost, the increased ...

Introduction

International nongovernmental organizations like WHO has been pressurizing governments to put in place policies which will reduce the number of smokers. Several governments have opted to increase tobacco excise tax as the main policy of decreasing smokers. In view of policy makers, increased cigarettes tax leads to increased retail prices because sellers pass the increased tax burden to smokers. It is widely acknowledged that increased price of a commodity leads to decreased demand because many people may not be able to afford the commodity. However, this objective may not be attained with ease because long run smoking is addictive, hence, ...

A market structure refers to the organizational and other interconnected characteristics of a market such as the ease of entry and exit, level of competition, the forms of product differentiation, the number of buyers and sellers as well as their strength especially as regards pricing. There are four major classifications under market structures, they include; perfect competition, monopolistic competition, oligopoly and monopoly. They each form a generic representation of a certain real market.

A perfectly competitive market structure is where there are many firms in the market, the products are relatively homogenous, there’s perfect knowledge and there’s free entry and ...

The American tax system is designed in a way that people of different social class pay different tax amounts and rates. The taxation used on the corporate is different from the one used by the IRS on individual American citizens. The IRS uses different tax rates on people with different incomes in order to enhance the canons of taxation. These canons include equity, productivity, economy, elasticity and convenience. The taxation system used by the revenue collecting body has several effects on the macro economy of the nation. The tax system usually aims to achieve the basic objectives of maximum social ...

Generally, during recession period, there are theories that are implemented to try and remedy the situation. The two major theories that have been utilized during the United States of America to try and save big businesses are: supply side economics and Keynesian theory. Arguments have been put across regarding the best theory that is capable of rescuing big businesses during the recession. According to Boskin, many have been in favor of Keynesian while others have been in favor of Supply-side. In this paper therefore, is going to investigate both theories arguing in favor of supply-side. This paper will also ...