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Mariya L

Excise tax on your phone bill may be on way out - 0 views

usatoday30.usatoday.com/...2005-06-30-taxes-usat_x.htm

phone excise tax Spanish-American war

shared by Mariya L on 18 Nov 12 - No Cached
  • Mariya L on 18 Nov 12
     
    In this article author talks about excise tax and specificly about excise tax that was imposed in 1898 and survived till nowadays. The purpose of that taxation was to pay for the Spanish-American War. The war was over in 6 months but tax stayed. The amount received from taxation was about $300 billion, and the amount spend on war was $6 billion. This tax is very unfair to customers, "This is a 19th-century tax on a 21st-century technology," says Jim Cicconi, AT&T's general counsel. The original purpose of the tax was to raise revenue for a specific purpose, and to do so in a way that would not be noticed by the average consumer. Today, the purpose is gone, and consumers are definitely feeling the pinch. Businesses and consumers pay the same: 3% of the total. On a $100 phone bill, that works out to $3. On a $10,000 bill - not uncommon for businesses - the tab is about $300. Another important fact pointed in that article is that phones were luxury during XIX century, but now they are almost necessities. Seven federal courts have so far declared the tax to be illegal.
Kyuhwan L

How to Know When to Tax and When to Spend - 1 views

truth-out.org/...-when-to-tax-and-when-to-spend

business cycle government spending taxation recession prosperity

shared by Kyuhwan L on 03 Mar 13 - No Cached
  • Kyuhwan L on 03 Mar 13
     
    I really found this article interesting because it explains the strategy of taxation that aligns with the business cycle. It explains that during times of economic hardship, a recession, then government should increase spending to first "soft blow for businesses and average working people," but to also stimulate the economy and move on to recover. This is reflected by the Keynesian theory of economy, where the government intervention is necessary to put the economy back on the right track. On the other hand, the government should relax expenditure and slightly increase tax to pay off deficit. This strategy is also supported by history, where the article gives examples of past U.S. presidents and government decisions during different times of the business cycle.
  • ...1 more comment...
  • Andrzej Z on 07 Mar 13
     
    I agree with you that this article is very interesting. Like you said before it reflect the Keynesian school of economics. However, there is one problem with these theory, you don´t know if the government intervention are helping the economy or not. It is impossible to state which theory is better or if the economy work better with government intervention or without them. To investigate which one is better you would need two identic economies (this is impossible) in recession and intervene in one economy and in the other don´t make any intervention and expect that the market forces will solve the problem. "This strategy is also supported by history, where the article gives examples of past U.S. presidents and government decisions during different times of the business cycle." However the business cycle doesn´t affect all the economies in the same ways. For example the Spanish government is making a lot intervention but the economy is not recovering. On the other hand the biggest problem with the government interventions is that you can´t be sure in 100% about the effect of the intervention. You can study a lot the economy and prepar the intervention for months but you will know the result after the intervention, and the result may not be positive. The other problem with the government interventions is that many of them are not popular and many governments won´t risk losing popularity.
  • Benjamin D on 08 Mar 13
     
    I agree with what Andrzej said about the fatc that we don't what are the best ways to help the economy, either making a goverment intervention or not. The problem is that none of this policies are 100% efficient and the example that Andrzej gives us about the Spanish government shows us how sometimes intervention doesnt recover the economy.
  • Benjamin D on 08 Mar 13
     
    I agree with what Andrzej said about the fact that we don't what are the best ways to help the economy, either making a goverment intervention or not. The problem is that none of this policies are 100% efficient and the example that Andrzej gives us about the Spanish government shows us how sometimes intervention doesnt recover the economy.
Mariya L

France Tries to Tempt In More Foreign Investment - 1 views

www.nytimes.com/...frances-doors-to-business.html

France Foreign Direct Investment

shared by Mariya L on 25 Feb 14 - No Cached
  • Mariya L on 25 Feb 14
     
    PARIS - President François Hollande of France has begun a major charm offensive to convince the world that France is open for business in a bid to lure back investments, which have slumped since he took office. In this article author talks about the measures taken by the president of France François Hollande. Recently he has gathered chiefs of the largest multinational companies and investment funds to speak about the needs of France in the investments. He has admitted that France may appear as a country with some complexity in the process of investment, however, France is ready to open itself up. Article also talks about some other aspects one of them is the measures taken by the government related to government spending and taxation.
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