Question

1. Select a provincial or federal government policy that you and your partner would like to work with.
2. In one or two paragraphs, summarize the policy.
3. Post your synopsis as a Discussion Board topic in the assignment that follows.

Answer 1

The topic chosen from the policies of federal government is -

Policy of economic affairs.

The the policy of economic affairs include budget and taxes managed by the government.

Let us first discuss about the three areas of expenditure done by the American government and the the approaches of the economy. 1930 the written economy was laissez fair economy.

the policy makers believed in the beginning that the key economic growth and development was the governments allowing private markets and operate efficiently. What the great depression of 1930 President Franklin Roosevelt realised that the new approach of economic regulation should be applied that is keynsian approach should be worked upon.

Let us now discuss the current economic affairs that is budget and taxes of the federal government.

Taxes

The three main sources of federal tax revenue individual, payroll taxes and corporate income taxes. There may be some other taxes which include excise duties estate tax and other taxes and fees.

Majority of the tax revenue comes from the income tax which is generally progressive in nature that is higher income households will pay higher rate of tax.

Next Big portion of tax revenue is obtained from the payroll taxes . This tax is assessed on the wage or salary paychecks of all the workers and used to fund social security Medicare hospital insurance and unemployment insurance. Payroll taxes are generally regressive in nature.

Another kind of tax recovered under the federal revenue is corporate income tax and some other taxes like excise tax which is collected on the sale of goods.

These taxes are used to raise the revenue of the Government and sometimes during the inflationary pressures they also discourage the consumption.

Estate tax is the tax charged on the assets.

Government expenditures

The annual budget covers 3 spending areas, which include

* Federal agency funding that is also called discretionary expenditure. It is the spending that accounts for around third of all the fundings.

* Interest on debts which usually uses less than 10% of all the expenditures.

* expenditure on the social security Medicare veterans benefit and other spending required by law. This is called mandatory spending which uses almost half of all the funding.