Policies for Economic Growth
Explain which of the following policies you believe are likely to increase the rate of economic growth in the United States.
a. Congress passes an investment tax credit, which reduces a firms taxes if it installs new machinery and equipment.
b. Congress passes a law that allows taxpayers to reduce their income taxes by the amount of states sales taxes they pay.
c. Congress passes a bill that pays all outstanding student loan debt in the United States.
An extremely good one-paragraph would be a minimum of eight full lines.
Also, write a short response to two posts.
First,
a. Congress passes an investment tax credit, which reduces a firms taxes if it installs new machinery and equipment.
Economic growth is an increase in an economy’s ability to produce goods and services over a specified period of time. Increasing the productivity of the economy refers to meeting the needs of the market and individuals in society. Economic growth has positive effects on national income, the level of employment, and a reduction in the unemployment rate.
Taxes are one of the most important financial sources for financing the state treasury, because building and developing the economy requires huge funds. Resources are the basis of the economic development process. It is also necessary that the tax system support the development policy that requires encouraging investments of all kinds by exempting them from taxes as well as protecting national industries by raising fees Tariffs on foreign industries. The tax system represents the most important tool and means of intervention to direct national and foreign investments towards achieving economic and social goals.
Second,
Congress passes an investment tax credit, which reduces a firm’s taxes if it installs new machinery and equipment.
