...3. Economic growth is arguably a very important factor to eliminate poverty or reduce inequality. However, along with the creation of jobs and reduction in poverty, there has been evidence that suggests this is not always the case. E.g. Both China and India have witnessed widening inequality as their growth rates picked up over the 1990s (Department for International development). Economic growth will only reduce poverty if the wages of the lowest paid workers rise faster than the average wage rate and the growth increases job opportunities, which reduces unemployment levels, alongside a few more factors. Also, if everyone benefits and there is pro-poor growth, then EG will reduce poverty, which the Kuznets Curve demonstrates. This states that...
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...On the computer you want to use NETFILE: 1 - Insert the portable storage media (e.g., flash drive, USB key, CD-ROM) containing your .tax (and .mrq for Québec residents) files into the proper drive. 2 - Open the Web browser you want to use and log on to the Internet. 3 - Visit the CRA's NETFILE Web site at http://www.netfile.gc.ca/[->0] 4 - Confirm that your Web browser meets the CRA's security standards. You must have a Web browser that has 128-bit secure sockets layer (SSL) encryption and cookies enabled. 5 - Click the Ready to file link, then follow the steps of the CRA's NETFILE wizard. Step 1: Identification Enter your social insurance number, date of birth, and personal access code in the spaces provided. Your personal access code is included in the tax package you received in the mail from the CRA. Each individual must have his or her own access code in order to file a tax return electronically. Spouses cannot use the same access code. If you have not received an access code, call CRA's NETFILE Help Desk at 1-800-714-7257 after February 14, 2011 to get one. Step 2: Attach your return ( .tax file) To meet CRA requirements, TurboTax has saved your return as a .tax file (your .tt10 file will not be accepted!). Use the browse button to navigate to the drive with your storage media and select your .tax file only. Note: Do not select your spouse's .tax file (if you have one), your .mrq file (if you are a Québec resident), or your .tt10 file as the CRA will not...
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...Income Mobility: Up & Down the Economic Ladder by Tom Thompson Dr.Walker Senior Seminar 7/29/2009 Thomas L. Thompson Dr. Christopher Walker Senior Seminar July 29, 2009 Income Mobility: Up & Down the Economic Ladder People always say they do what they do to make life better not only for themselves, but for the future well-being of their children and hopefully those actions will get passed on to their children. This is my way of thinking of the paying it forward theory; giving all I have, to make the lives of my children better than the one I grew up with and the one I currently live. One of my most favorite quotes about getting ahead in life came from a philosopher and pastor Russell Conwell that is hand-written by my grandmother in a Bible that was given to me some years ago. It goes like this, “For a man to say, I do not want money, is to say, I do not wish to do any good to my fellow men" (Conwell). Everyone wants money, only if it is to do good for your family’s future. From the rich business professional perched high in their penthouse to the lowly street peddler on the corner, everyone has a story on how and why they ended up in that position. The United States is seen as the place where everyone has the opportunity of the “American Dream”. That includes the opportunity for one's children to grow up and attain to their fullest potential in which they are capable of, and seen for what they are and not what they are born with. It is the opportunity...
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...Income tax is usually a progressive tax placed upon people who have an income. By being progressive, it means the more a person earns, the more they will have to pay in tax. Income tax is part of fiscal policy and is a major tool used by the government to influence economic performance. In the short run a reduction in income tax would certainly improve economic performance. A reduction in income tax will mean households have more disposable income and so will spend more. This is shown by a shift in aggregate demand from AD1 toAD2. This results in an increase in output and Real GDP of Y1 to Y2 however it also increases the price level from P1 to P2. In the short run this rise in prices is accompanied by a rise in output and real GDP and so is acceptable. However in the Long Run further rises in AD do not cause rises in output and real GDP, instead they only raise the price level This is shown on the above diagram, where the only rise is in the price level which is described by Monetarists as “the greatest economic evil”. As part of the fiscal policy, income tax rates are a demand slide policy, which are used mainly to influence economic growth in the short run. Known as Keynsian approach. Monetarists believe the best way to achieve Long term growth is through supply side policies. These include education and training schemes, corporation taxes and infrastructure. They are all aimed at increasing output and real GDP. As seen above Real GDP and output have increased with no...
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...According to Wikipedia.com, “Income redistribution is a practice designed to level incomes across a society through the transfer of income from wealthier to poorer individuals, either directly or indirectly. Proponents of this practice argue that it promotes the development of a democratic society and addresses a number of social problems that are linked with poverty. Opponents believe that it is a form of theft, suggesting that it involves taking legitimately earned funds away from people and giving them to others. Many governments around the world practice some form of income distribution, and there are varying ways to approach it”. In my opinion, redistribution of income is a valid economic function of our American system of government because it’s a good way to support those who have lower incomes. Every American’ dreams of finding a job that pays well enough so that they may comfortably take care of their loved ones and themselves for years to come. Most Americans hope to find some way to make a living that they enjoy, something that they view as productive. Unfortunately, many do not have this luxury. In our society, a good portion of the population is forced to hold the base of our country in place while hardly being redeemed for their time and effort, and thus the problem of income inequality. Numbers of these people live from paycheck to paycheck, barely getting by, not because they manage their money poorly, but because the value of their time at work is negligible...
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...Discuss the economic relationships between consumption, national income and investment. Aggregate demand is heavily determined by the state of consumption, the spending on consumer goods and service over a period of time; Furthermore income and investment have a very volatile connection with consumption. National income is the total level of output of a country and is calculated by C+I+G+(X-M)= AD however there is three ways in which we can be interpreted. Firstly The expenditure method is the worth of household spending of goods and services, secondly national output is the amount flowing between goods and services from firms to households; finally there is the national income which is the value of income to households from land, capital and labour from firms. The three components must be identical not just equal. Investment is the expenditure on capital goods, that then are used to provide other goods or services. Investment can be effected by the accelerator effect as an increase in nation income results in an increase in investment, however for this theory to take place its not the rate of interest that determines the level of investment but real spending within the economy. Consumption influences national income as it has many determinate’s, however it is important to determine that income is a flow ands wealth is a stock. National income is strongly controlled by confidence as the higher the confidence people feel, the more they will spend. Confidence can be knocked...
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...How Do Variations in an Area’s Income Level Affect the Social, Economic and Environmental Impact of a Cyclone? All hurricanes may hold an element of danger, but some have many more catastrophic social, economic and environmental impacts, mainly due to an area’s income level. Hurricane Katrina and Cyclone Nargis were both very powerful tropical storms, but differed greatly in impacts in the two areas, due to economic reasons, as we will explore in this essay. On the morning of 29th August 2005, Hurricane Katrina struck New Orleans, with winds of around 200 km/h and 200-250mm of rainfall in Louisiana and a storm surge of 8.5m in Mississippi. The area of New Orleans holds both affluent and very poor areas within the city, meaning the population were affected differently when the hurricane struck. Before the hurricane hit land, the mayor of New Orleans ordered a mandatory evacuation of the city, with an estimated 80% of people leaving the city before the storm hit. This significantly reduced the number of people killed, as the majority of the population has already left the country. However, 100,000 people didn’t evacuate, either because they wanted to protect their property or they simply could not afford to leave the area. The hurricane ripped through New Orleans, killing 1,836 people, leaving 3 million people without electricity and polluting water supplies with sewage, chemicals and the deceased. The hurricane also destroyed 300,000 people’s homes, meaning emergency...
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...Income is a flow of earnings from a stock of capital. Income is earned in the form of wages, interest from savings, dividends from shares, income from pensions or rent from properties. This means that the more capital you have (such as shares savings or property) the more income you get from them. This means that not everybody gets the same income and there are a lot of people that do not get enough. The amount of people currently living below the poverty line is 20 million across the EU. This means that there are a lot of people that are unable to support themselves on the income that they get. This is why the government intervenes and either redistributed the income in the forms of taxes and benefits or they use supply side policies to try and encourage people into higher earning jobs. Redistributing income can be done in several ways; it can be done through a progressive tax system, tax credits or wealth taxes or benefits. A system of progressive direct taxation can reduce income disparities and if combined with a high level of government spending on benefits can achieve income redistribution. In the UK the highest rate of income tax is 45% for those earning more than £150’000 and the lowest income tax rate is the ‘basic rate’ at 20% for earnings of £10’600 to £31’785. The problem that is caused for those taxed and those on benefits is the disincentive effect. Those on higher incomes may decide to work less so that they do not reach the next tax bracket, or take higher incomes...
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...National Income in India, Concept and Measurement General Economics National Income • National income is the money value of all the final goods and services produced by a country during a period of one year. National income consists of a collection of different types of goods and services of different types. General Economics: National Income in India, Concept & Measurement 2 National Income • Since these goods are measured in different physical units it is not possible to add them together. Thus we cannot state national income is so many millions of meters of cloth. Therefore, there is no way except to reduce them to a common measure. This common measure is money. General Economics: National Income in India, Concept & Measurement 3 Basic Concepts in National income • Gross domestic product • Gross domestic product at constant price and at current price • Gross domestic product at factor cost and Gross domestic product at market price General Economics: National Income in India, Concept & Measurement 4 Basic Concepts in National income • • • • Net domestic product Gross national product Net national Product Net national product at factor cost or national income General Economics: National Income in India, Concept & Measurement 5 Gross Domestic Product • Gross domestic product is the money value of all final goods and services produced in the domestic territory of a country during an accounting...
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...National Income II Sherif Khalifa, Ph.D. Department of Economics California State University, Fullerton Sherif Khalifa, Ph.D. Department of Economics California National Income II State University, Fullerton () 1 / 31 Circular Flow Income Markets for factors of Production Private Saving Factor Payments Financial Markets Public Saving Taxes Households Government Firms Government Purchases Investment Markets for Consumption Goods and Services Firm Revenue Sherif Khalifa, Ph.D. Department of Economics California National Income II State University, Fullerton () 2 / 31 Supply Production De…nition Factors of production are the inputs used to produce goods and services. The two most important factors of production are capital and labor. Capital is the set of tools that workers use. Labor is the time people spend working. Factors of production are fully utilized. K =K L=L Sherif Khalifa, Ph.D. Department of Economics California National Income II State University, Fullerton () 3 / 31 Supply Production De…nition The available production technology determines how much output is produced from given amounts of capital and labor. Y = F (K , L) Y = F K, L De…nition A production function has constant returns to scale if an increase of an equal percentage in all factors of production cause an increase in output of the same percentage. zY = F (zK , zL) 4 / 31 Sherif Khalifa, Ph.D. Department of Economics California National Income II State...
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...RELATIONSHIP BETWEEN DIVISIONS OF ECONOMICS AND LABOR ECONOMICS Insert name Insert institution Insert course Insert date Abstract Labor economics comprises the study of the factors affecting workers. Since all divisions of economics involve workers, it is prudent to evaluate their influence on labor economics and labor market for that matter. Consumption directly affects the supply of labor. If the workers experience an increase in their desire for consumption in relation to leisure, the labor supply curve will shift outwards. The workers will supply more labor at every given wage. The effect of public finance on labor economics may be through government taxation on the workers. If income taxes increase, workers will likely substitute leisure for consumption and supply less labor. Any effects on the supply and demand for labor will ultimately affect the labor market thus are essential in labor economics. Distribution of income may also affect the labor market especially if the distribution is unequal. Inequality in the distribution of income will affect workers and thus affect labor supply. Production of goods and services on the other hand determine the supply and demand for labor. Such effects directly influence the labor market. Table of Contents Abstract 2 Table of Contents 3 Introduction 4 Effect of consumption on the labor market 4 Effect of income distribution on the labor market 5 Effect of exchange on the labor market 6 Effect of production...
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...Income inequality is one of the big issues in 21st century. Unequal distribution of income in society is considered to be an obstacle to economic growth. The income allocation of a country’s population can be measured by a Gini coefficient. The value of Gini coefficient can be between 0 and 1 and used to define the income gap between the rich and the poor. The value 0 shows perfect equality and value 1 illustrates perfect inequality. The US can be an example of country with high income inequality. The US Gini coefficient has risen by 20% between 1979 and 2010 (Frizell, 2014). Factors like family structure (i.e. how many earners are there in family), technology (i.e. changes the way that we live), and immigration (i.e. changes the supply of...
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...Income Guarantee Schemes Amir Hasanat ECON 3505 - Critique of Capitalism Abstract Canada and the United States grapple with situations that necessitate income guarantee schemes but have not implemented the schemes. Income guarantee schemes are social welfare provisions in which governments offer incomes to the citizens to enable them meet their needs as long as they meet established conditions. The origin of this scheme lies in the understanding that every citizen has a right to wealth and property of the state. It is also based on the reality that not all citizens are capable of earning income or sustaining themselves. Income guarantee schemes are based on social welfare models, which conceptualize that it is the role of the government to cater for the needs of the citizenry. Therefore, income guarantee schemes undermine the ideals of capitalism that call for individual efforts for purposes of meeting needs. Income guarantee schemes have a long history of evolution, implementation, and success. Introduction The United States has a number of anti-poverty programs that guarantee economic support to the vulnerable in society (Economist, 2013, p. 1). Income guarantee schemes can be of great relief to a number of poverty stricken people in the country. In Canada, a four-year experiment with income generation schemes was successful but due to economic period of the time, the schemes were discontinued (Belik, 2011, p. 1). Though they intend to end poverty...
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...Income inequality in Turkey and its causes and effects on the Turkish population Maastricht University | | | | School of Business & Economics | | | | Place & date: | Maastricht,08 December 2014 | Name, initials: | Canli, T | ID number: | 6091093 | Study: | International Business | Course code: | ebc1009 | Group number: | 1 | Tutor name: | Pierfrancesco, Guarino | Writing tutor name: | Campbell, Gabriel | Writing assignment: | Main Paper (Task 10) | | | t.canli@maastrichtuniversity.nl Table of Contents 1. Introduction 2 2. Income Inequality and its components 2 3. Gini coefficient and inequality 3 4. Turkey´s economic structure 3 5. Wage distribution in Turkey 4 6. Main causes of inequality 5 6.1 Return on capital and increase of economic input 5 6.2 Relationships between people and social mobility 5 7. Effects on Turkish population 6 7.1 Education, child labor and social mobility 6 8. Possible solutions 7 9. Conclusion 8 10. Works Cited 9 11. Figures 10 12. Tables 10 1. Introduction In the past decades the topic “Economic Inequality” has risen in popularity. The reason for this trend is mostly because economic inequality has risen drastically around the world. There are many forms of economic inequality, e.g. gender inequality, regional disparities, and wage inequality, only to name a few. Thus many politicians are discussing about economic inequality, particularly in Turkey. The largest driving...
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...The average rate at which an individual or corporation is taxed. The effective tax rate for individuals is the average rate at which their earned income is taxed. The effective tax rate for a corporation is the average rate at which its pre-tax profits are taxed. An individual's effective tax rate is calculated by dividing total tax expense by taxable income. For corporations, the effective tax rate is computed by dividing total tax expenses by the firm's earnings before taxes. The effective tax rate is the net rate a taxpayer pays if all forms of taxes are included and divided by taxable income. The effective tax rate is often a more accurate representation of a taxpayer's tax liability than its marginal tax rate. Two companies that are in the same marginal tax bracket, for example, may end up with different effective tax rates depending on their earnings. This occurs particularly with a progressive, or tiered, tax system, where different levels of income are taxed at different rates. For example, the first $100,000 of income may be taxed at 10%, and income between $100,001 and $500,000 might be taxed at a rate of 15%. The corporation's income is taxed at the various levels, and to determine the effective (or average) tax rate, the total tax is divided by the total taxable income The term effective tax rate has different meanings in different contexts. Generally its calculation attempts to adjust a nominal tax rate to make it more meaningful. It may incorporate econometric,...
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