Create an account
benefit principle of taxation
those who benefit from govt should pay in proportion to amount of benefit (tax built into gas prices, etc)
2 types of government spending
expenditures on goods and services - most are public goods and 2. transfer payments (like grant in aid - neither goods nor services)
how debt effects economy
1. distribution of income across society 2. transfer purchases power from private to public sector 3. reduce incentive to work, save money, invest
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