Question

In: Economics

1. Please describe the objective approach of ability to pay in economics according to HL Ahuja.

1. Please describe the objective approach of ability to pay in economics according to HL Ahuja.

Solutions

Expert Solution


The objective approach to the principle of ability to pay takes the objective basis of taxation into account, which measures the ability to pay correctly. On this issue, too, there is even no agreement. Income, however, is widely regarded as the best predictor of payability.
The explanation is that the income of an individual determines the power of a person over resources over a time to spend or to add to his property. However, the ability to pay does not increase directly with regard to money income. it can be noted.
The ability to pay raises in excess of the sales level. It is the basis for the logic of gradual income tax.
Further, in order to ensure equity in taxing income distinction ought to be made between earned income and unearned income, and considerations should also be given for a number of depend­ents on the person paying the tax.
Moreover, a distinction should be made between earned income and unearned income in order to ensure equity in taxing income and for a number of dependants on the tax payer, considerations should be made.


Related Solutions

Please give comments, thank you. In economics, the principle of absolute advantage refers to the ability...
Please give comments, thank you. In economics, the principle of absolute advantage refers to the ability of a party to produce a greater quantity of a good, product, or service than competitors, using the same amount of resources, and The law or principle of comparative advantage holds that under free trade, an agent will produce more of and consume less of a good for which they have a comparative advantage. The more good and services that a country can product...
Describe the role of the reserve army or unemployment according to the Marxian Economics. Currently the...
Describe the role of the reserve army or unemployment according to the Marxian Economics. Currently the world economy due to the pandemic there is a decrease in demand levels. Discuss to what extend the capitalist system and the broader social structure needs the unemployment under these conditions, and to what extent unemployment may be harmful for the society and the economy. Some countries have adopted policies to combat with unemployment, or with its potential effects. Discuss how different methods used...
1. Is profit maximization acceptable as the objective of production in Islamic economics? ( 20 mark...
1. Is profit maximization acceptable as the objective of production in Islamic economics? ( 20 mark ) 2. What are the four (4) characteristics that define “prohibited interest rate”? Explain Muslim scholars’ arguments in justifying the prohibition of interest rates. ( 20 mark )
1. Explain the difference between a “global approach” to pay/benefit satisfaction and a “facet based approach”....
1. Explain the difference between a “global approach” to pay/benefit satisfaction and a “facet based approach”. 2. Identify the facets used by Heneman and Schwab to explain pay satisfaction.
1- Classify the power switches according to the ability to control 2- What are the conditions...
1- Classify the power switches according to the ability to control 2- What are the conditions of turning on the thyristor. State the methods of turning it off. What is the main difference between thyristors and GTO 3- Describe the behavior of TRIAC 4- Derive the expressions of the average load voltage and current in single-phase half-wave controlled rectifiers and resistive load. Draw the waveforms of supply voltage, output voltage, output current, thyristor voltage and thyristor current 5- In a...
(1) Explain the Political Economy Approach to Urban Economics. What are its main contributions to the...
(1) Explain the Political Economy Approach to Urban Economics. What are its main contributions to the existing studies on the field of urban economics? What are its differences from the mainstream urban economics?
Objective: Students demonstrate ability to 1. Utilize several capital budgeting concepts. 2. Complete required calculations. 3....
Objective: Students demonstrate ability to 1. Utilize several capital budgeting concepts. 2. Complete required calculations. 3. Develop a written recommendation to senior management based on resulting data. Scenario: D & H Enterprises is considering building a new plant overseas or expanding their product line.                   Cost will be $3,500 million for either option. Discount rate for both projects is 11%.                 Cash inflows for each options are below. Shown in millions: Year Option A: Build New Option B: Expand...
A. Please list and describe the FIVE neurotransmitters, according to this template: Neurotransmitter #: ___________________________________ Description:...
A. Please list and describe the FIVE neurotransmitters, according to this template: Neurotransmitter #: ___________________________________ Description: _________________________________ B.Fill in the Blank Please identify two neurotransmitters that are involved in both learning and memory. Neurotransmitter 1: __________________________ Neurotransmitter 2: __________________________
1. Explain the theory of a firm. 2. Describe the objective of the firm as presented...
1. Explain the theory of a firm. 2. Describe the objective of the firm as presented in standard economics: profit maximisation. 3. Define opportunity cost, explicit and implicit cost. 4. Distinguish accounting and economic profit. 5. Differentiate cost minimisation and profit maximisation and compare and contrast the complexity of the two problems. 6. Analyse the link between a firm’s production process and its total costs. 7. Distinguish the relationship between short-run and long-run costs. 8. Explain the meaning of competition....
Please describe a ethical issue recently reported on the financial media. And write a normative approach...
Please describe a ethical issue recently reported on the financial media. And write a normative approach to ethical decision-making by helping managers understand and correct ethical violations in their own departments.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT