This is an interesting measure and takes time to digest. In France, for example, this is...

This is an interesting measure and takes time to digest. In France, for example, this is a very high number and taxes are high as a result. At the same time, there are many services like education, and healthcare that are paid for as part of this. We understand this concept when it comes to our cell phone, but in the US we have an immediate negative response to taxes. Imagine if you will your taxes go from 10,000 to 15,000 but you get free healthcare and college (which costs you more than 5,000 per year now). In the US, this type of tax increase is not tolerable by many, and at the same time it can raise the standard of living for many.

Why is bundling OK for cell phone but not taxes? Should expenditure per capita be lowered or raised to improve society?

Expert Solution

Ans1) product bundling is offering several products or services for sale as one combined product or services packaged in an offer.Industries engaged are telecommunication services,financial services ,healthcare etc.

The argument in favour of bundling of cell phone and not bundling of taxes is as taxes can be income, wealth or corporate reduces the disposable income of the tax payer also it results in reduction of consuming good and services which can fullfill the needs and demands of people.Also progressive taxation demotivate the successfully people's as they have to pay more taxes.The bundlelling of cell phone includes benifits that they can get regarding servicces ,repairs and updates since it is a good or service hence adds to utility .expenditure for public welfare should be increased as it benefits the society and help in the upliftment of masses such expenditures are on education,healthcare,.etc.They also help to reduce unequal distribution of resources providing subsidies to poor will help in raising the standard of living of poors and deprived and help them to plug into the mainstream economy and it will benifit economy by increase in demand

Rahul Sunny answered 2 years ago

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