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The existing US Federal Tax code is the best example of "redistribution of wealth" (after all, it takes the power of government to take the income of one group and redistribute it to another group). The Federal Income tax is "progressive" in that it taxes higher incomes at a higher rate than lower incomes --- by definition this is redistributive. A "Summary of Federal Individual Income Tax Data for the year 2005" (the most recent data available from the Internal Revenue Service reveal that: Top 1% earned 21.20% of all incomes reported, but paid 39.38% of all income taxes. The top 5% earned 37.75% of all incomes, but paid 59.67% of all income taxes. The top 25% earned 67.52% of all incomes, but paid 85.99% of all income taxes. The top 50% earned 87.17% of all incomes, but paid 96.93% of all income taxes. Source: Internal Revenue Service (as reported on www.taxfoundation.org) Essentially half of the country paid the entire federal tax bill for the other half. We have reached a "tipping point" where people paying no income tax have the electoral power to elect a leader who promises to "tax the other guy". This can progress to where we all agree to tax only Bill Gates and Warren Buffet.
There are many different ways the income is redistributed. One easy way is just by simple payments from one person or group to another. And example of this is welfare (varies by State in America) and unemployment benefits. These take taxes from a certain group (tax payers) and give them to another (the poor or the unemployed). Another way is by restricted government services. The restricted qualification is very important because if everyone can use the service it's not redistribution. Real world examples of this are medicare and medicaid in America. These take tax dollars from some Americans and use them to fund services available only to people who meet certain qualifications (in these examples age and income). Another redistribution program is Social Security.
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Methods of calculating national income?
There are three methods in calculating the national income. One is the net output method. Another is the income method, and lastly, the outlay method.
How many methods of GDP are there?
the methods for GDP is of 3 types 1.product method 2.income method 3.expenditure method.
What are the methods of calculating GDP?
expenditure approach and income approach & VALUE ADDED METHOD
What was the average income in 1930?
I've seen from a few sources that $114 a month was the average income in the 30's
Would redistributing incomes from the rich to the poor reduce the overall problem in scarcity?
No. Redistribution would not improve the supply, but rather the demand for goods. * Although "control" of the country's wealth is in the hands of a minority, there would not be enough revenue from income redistribution to improve the average lifestyle: that would require the redistribution of income-producing resources, which is socialism or communism. Once there was no advantage to self-improvement, the "rich" would stop earning money that they could not keep.
What are the economic functions of government?
Providing legal structure, maintain competition, redistributing income, reallocating resources, and promoting stability
Methods of calculating national income?
There are three methods in calculating the national income. One is the net output method. Another is the income method, and lastly, the outlay method.
What are the different methods of preparing income statement?
There are two methods of preparing Income Statement. They are:- 1. Absorption costing method. 2. variable Costing method.
What is national income accounting as a methods of national income?
Following are the method of national income accounting :-Product MethodExpenditure MethodIncome Method
What are the methods of Accounting for Branch?
branch accounting income statement
What are the methods of branch account?
branch accounting income statement
How many methods of GDP are there?
the methods for GDP is of 3 types 1.product method 2.income method 3.expenditure method.
What is presumptive tax?
Presumptive tax is a way of applying a tax using indirect methods. These methods may be income reconstruction, or other methods. This is a good way to ensure the tax is not avoided.
Why do different approaches yield the same net income?
The Income Approach is one of three major groups of methodologies, called valuation approaches, used by appraisers. It is particularly common in commercial real estate appraisal and in business appraisal. The fundamental math is similar to the methods used for financial valuation, securities analysis, or bond pricing. However, there are some significant and important modifications when used in real estate or business valuation. While there are quite a few acceptable methods under the rubric of the income approach, most of these methods fall into three categories: direct capitalization, discounted cash flow, and gross income multiplier.
What does redistributing copyright works mean?
Redistributing copyright works means making a work further available by copying and distribution, including uploading. It is one of the exclusive rights of the copyright holder.
What are the methods of calculating GDP?
expenditure approach and income approach & VALUE ADDED METHOD
What measures exist to prevent fraud in low income housing programs?
There are several methods to prevent fraud in low income housing programs. The include income checks and verification to ensure honesty.
