R110‐3 Fiscal Policy Tools:Spending Tools,Revenue Tools&Desirable attributes of tax policy

 

　　R111‐3 Spending Tools:

 

　　◆Transfer payments:redistribute wealth,taxing some and making payments to others,transfer payments are not included in GDP computations.

 

　　◆Current spending:government purchases of goods and services on an ongoing and routine basis.

 

　　◆Capital spending:government spending on infrastructure such as roads,schools,bridges,and hospitals R112‐3 Revenue Tools

 

　　◆Direct taxes are levied on income or wealth.These include income taxes,taxes on income for national insurance,wealth taxes,estate taxes,corporate taxes,capital gains taxes,and Social Security taxes

 

　　◆Indirect taxes are levied on goods and services.These include sales taxes,value‐added taxes(VATs),and excise taxes.

 

　　◆间接税的执行速度较快R113‐3 Advantages of fiscal policy tools

 

　　◆Social policies such as discouraging tobacco use can be implemented very quickly via indirect taxes

 

　　◆Quick implementation of indirect taxes also means that government revenues can be increased without significant additional costs R114‐3 Disadvantages of fiscal policy tools

 

　　◆Direct taxes and transfer payments take time to implement,delaying the impact of fiscal policy

 

　　◆Capital spending also takes a long time to implement.The economy may have recovered by the time its impact is felt.