Fiscal Policy

Question 1

Tax

Answer 1

• law by the gov. On citizens for nation to earn income
• used to allocate resources and redistribute wealth
• almost all revenue is from here

Question 2

Tax system of philippines is executed through

Answer 2

constitution of the Philippines national internal revenue code local laws

Question 3

Collects international level tax

Answer 3

Bureau of internal Revenue BIR

Question 4

Collects local level tax

Answer 4

Local treasurers

Question 5

Characteristic of tax
Mandatory payments imposed to the gov.

Answer 5

Enforce contribution

Question 6

Characteristic of tax
Typically settled with currency

Answer 6

Generally payabe money

Question 7

Characteristic of tax
Rates vary based on imcome or value

Answer 7

Proportionate in character

Question 8

Characteristic of tax
Imposed on individuals, businesses, property

Answer 8

Levied on person or property

Question 9

Characteristic of tax
Imposed by the governing authority

Answer 9

Levied by the state which gas juridiction over the person or property

Question 10

Characteristic of tax
Established through legislation

Answer 10

Levied by the law making bodies

Question 11

Classification of tax according to subjext matter or object

Answer 11

a. Personal, poll or capitation
— a fixed tax on residents of a specific area. Regardless of proerty or occupation

b. Property tax
- ttax on land/property

C. Excise tax
- imposed on manufactured goods than at the point of scale or sellinh

Question 12

Classification of tax according to scope

Answer 12

a. Natioal
- nation gov, impose the tax

b. Municipal/local
- local/municipal gov, impose tax

Question 13

Classification of tax According to determination of account

Answer 13

a, specific tax
- fixed amount tax based on quantity or measurment
- without individual assesment,

advolarem tax
- based on assesed value of item like real estate personal property
- needs assesment to estimate the value of such property

Question 14

Classification of tax according to who weras the burden

Answer 14

Direct
- demanded from the person who shoulders the burden of tax like personal income tax

Indiredt tax
- demanded from one person in expectation and intention that he should repay himself
VAT

Question 15

Classification of tax accordting to graduation

Answer 15

• proportional
  Fixed tax percentage
• 10% income tax
• progressive/ graduated
• rate of increase as the tax base or bracket increase
• regressive
• rate of decrease as the tax base or bracket decreases

Question 16

Fiscal policy?

Answer 16

• use of country’s budget to alter the economy
• gov. Spending influences macreeconomic conditions, like aggregate demand, employment and inflation
• gov, can stabalize economy through spending patterns or taxagion shstems used

Question 17

What do we do and what is expansionary fiscal policy for

Answer 17

• we want to increase the gross domestuc product to feul economic growth

1.increase in gov. Spending
2. Lower taxes
3. Increase gov. Transfers

Question 18

What is and what do we do in contractionsry fiscal policy

Answer 18

• to counter inflation and budget deficiets if an economy generates more than its potential gdp

1, decrease in gov. Expenditure
2. Imcrease in tax
3. Decrease in transfers?

Question 19

When do we use either expansionary or contractionsry fiscal policy

Answer 19

Expansionary
- when an economy is in crisis

Contractionary
- when economy generates more than its potential gdp o r address indlation