Question

Ram spends 75% of his income . His income is increased by 20%and he increased his expenditure by 10%.Calculate the percentage of increased saving of ram.

Answer 1

Effects of Taxes:

The most important objective of taxation is to raise required revenues to meet expendi­tures. Apart from raising revenue, taxes are considered as instruments of control and regulation with the aim of influencing the pattern of consumption, production and distribution. Taxes thus affect an economy in various ways, although the effects of taxes may not necessarily be good. There are same bad effects of taxes too.

Economic effects of taxation can be studied under the following headings:

1. Effects of Taxation on Production:

Taxation can influence production and growth.