Are taxes and subsidies an example of tansfer income and payments???
Dear Student,
No, taxes and subsidies are not a part of transfer income and payments. Taxes are charged on production activities and subsidies are given to promote production activities. Transfer payments or incomes are the those payments and incomes which are given by government or received by government without any consideration and for welfare of the country.
Taxes and subsidies are the part of NIT ( Net Indirect Taxes) . NIT= Taxes- subsidies.
Transfer payments and subsidies and taxes are two different things . Transfer payments are not considered by calculating national income of country, but taxes and subsidies are considered while calculating national Income of country.
Hope this information will clear your doubts about this topic.
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No, taxes and subsidies are not a part of transfer income and payments. Taxes are charged on production activities and subsidies are given to promote production activities. Transfer payments or incomes are the those payments and incomes which are given by government or received by government without any consideration and for welfare of the country.
Taxes and subsidies are the part of NIT ( Net Indirect Taxes) . NIT= Taxes- subsidies.
Transfer payments and subsidies and taxes are two different things . Transfer payments are not considered by calculating national income of country, but taxes and subsidies are considered while calculating national Income of country.
Hope this information will clear your doubts about this topic.
If you have any more doubts just ask on the forum and our experts will try to help you out as soon as possible.
Regards