Fiscal POlicy

[dimpy.handa]

Progressive taxation is a form of large-scale redistributionist economics that simply pushes the burden of funding government activities higher up the income chain in larger amounts.
Should the policy support progressive tax rates?

 

[dimpy.handa]

Progressive tax rates stimulate higher consumer activity. As income levels rise, marginal propensity to consume tend to drop. Thus it is often argued that economic demand can be stimulated by reducing the tax burden on lower incomes while raising the burden on higher incomes.

 

[gala01]

PROGRESSIVE TAXATION IN ONE WAY IS A RIGHT ACTIVITY AS PEOPLE SHOULD CONTRIBUTE OUT TO THE SOCIETY AND GOVT IN ONE WAY OR THE OTHER. THE PROGRESSIVE ACT IS ACCEPTABLE...

 

[satyamsaxena0786]

Fiscal Policy is the main part of Economic Policy and Fiscal Policy's first word Fiscal is taken from French word Fisc it means treasure of Govt. So we can define fiscal policy as the revenue and expenditure policy of Govt. of India .It is prime duty of Government to make fiscal policy . By making this policy , Govt. collects money from his different resources and utilize it in different expenditure . Thus fiscal policy is related to development policy . All welfare projects are completed under this policy

 

[swatiraohnlu]

An example of progressive tax rate: A homeowner who owns a $1 million home will pay more for insurance than will the owner of a $200,000 home. The insurer is not penalizing the first homeowner for his success. The first homeowner simply has more to lose and therefore pays more.

 

[dimpy.handa]

Progressive taxation is a form of large-scale redistributionist economics that simply pushes the burden of funding government activities higher up the income chain in larger amounts. As well as being unfair, this concentration of taxation amongst a narrow group of taxpayers introduces a higher risk of a sudden drop in tax take, for example if a recession means lots of executive jobs are cut in a short time period.