Answer to Question #91715 in Microeconomics for Edwin

Question #91715
How is possible for a government to have taxes for much higher value than money in circulation in economy.?kenya collects taxes worth 1.3trillion yet the money in circulation is 300 billion
1
Expert's answer
2019-07-16T09:31:14-0400

It is possible, when government protects domestic manufacturers and imposes higher tax rates for foreign companies. For example, in Kenya barriers against foreign suppliers exist in construction, engineering, architecture, insurance, and shipping. While the corporate tax rate for home industrial enterprise is 35%, the tax on the income of branches of foreign firms is 42.5%. Taking into account a big number of foreign suppliers, insurance companies, banks and investors, they can transfer their incomes abroad, but all money from taxes remain inside the country.


Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS