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The economic goals of a tax system are direct and indirect. The direct economic goal would be revenue - making money so they can spend it. Indirect economic goals would be to support favorable industrial development. Examples are credits for alternative fuels, investment credits, and other direct reductions in tax for certain industries and economic endeavors. Social goals would be to encourage behaviors through direct benefits via the tax system The Earned Income Credit is the best example. It encourages families to work by paying them more money if they earned any thing.

2007-06-12 11:28:43 · answer #1 · answered by Dan 3 · 0 0

Sorry, but I don't do homework any more.

2007-06-12 13:40:55 · answer #2 · answered by Bostonian In MO 7 · 0 0

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