Progressive Tax Case Study

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Question 1: The first thing is what the GNP and GDP are, GDP (Gross domestic product) is measuring an economy’s output (Begg, 2009, p. 176). GNP (Gross national product) is the total income of citizens wherever it is earned. GNP is GDP plus net property income from abroad. (Begg, 2009, p. 178). Gross domestic product is the core of the national economic accounting index, and is measure of a country or a region’s overall economic situation. A country economy’s output can’t stand for national wellbeing, it only can show the country or a region’s overall condition. It is different of gross domestic product the gross national product is a more comprehensive concept. Gross national product refers to a country or a region all citizens in a certain…show more content…
Progressive tax structure is the tax take a larger percentage from income of high-income earners than from income of low-income earners (WebFinance, 2016). In other word, the progressive tax, it is the tax rate increase with the income increase. It is according to the different income level to pay for the different tax. In my opinion, the progressive tax system it is the most fair. The main benefit of the progressive tax system is it can help the balance of income tax system. In other hand, progressive tax system is fair than a system required pay same tax from every taxpayer. Someone make more money and pay more tax, someone make less money pay less tax. It is seem like more sensible. Question 7: The VAT is value added tax, is a consumption tax, it generate from when you spend money on purchases or services (WebFinace, 2016). When a manufacture produce a product, it is need to pay valued added tax on the components purchased in order to produce a product. When customer buy a goods they paid the value added tax it is used to minus the cost of components which have already been
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