The reason why the tax expenditure is more than the tax revenue generated and the benefits of the tax Concept Introduction: Tax: Tax is the primary source of a country’s revenue. This is collected from various sections of people by various means. The tax collected is then used to fund public utility projects and run government programs. Answer: Tax Expenditure: Tax expenditure is the difference between the proposed revenue to be collected and the actual revenue collected. This includes various leverages provided by governments such as rebates, deductions, subsidies etc. Tax expenditure is an opportunity cost . Tax Revenue: Tax Revenue is the income generated by the government from its citizens, corporate and other entities that use the country’s resources such as land, labor, raw materials etc to earn money or its equivalent. Tax is the major source of income to a government’s treasury.

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Chapter 7, Problem cWYWL

To determine

The reason why the tax expenditure is more than the tax revenue generated and the benefits of the tax

Concept Introduction:

Tax:

Tax is the primary source of a country’s revenue. This is collected from various sections of people by various means. The tax collected is then used to fund public utility projects and run government programs.

Answer:

Tax Expenditure:

Tax expenditure is the difference between the proposed revenue to be collected and the actual revenue collected. This includes various leverages provided by governments such as rebates, deductions, subsidies etc. Tax expenditure is an opportunity cost.

Tax Revenue:

Tax Revenue is the income generated by the government from its citizens, corporate and other entities that use the country’s resources such as land, labor, raw materials etc to earn money or its equivalent. Tax is the major source of income to a government’s treasury.

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