GOVERNMENT'S TAX AND TRANSFER SYSTEM:

• A TAX is acompulsory financial charge,whisch is levied on a taxpayer.
• it is consist of direct and indirect tax.
• the first knosun taxation is took place in ANCIENT EGYPT around 3000-2800 bc.
• most countries have a tax system to pay for public,common,agreed national needs and government functions.
• countries are subunits of wealth tax,estate tax

  property tax,sales tax

payroll tax,tariff.

• A TRANSFER payment is a one way payment to an organisation.
• it refers to exchange for a product or service.
• it isused to describe government payments mainly through---welfare,student grants

social security.

• in US social security and unemploynment insurance are common types of transfer payments.

???????SO THESE ARE THE SOME INFORMAION ABOUT GOVERNMENT'S TAX AND TRANSFERS......

LOW INCOME HOUSEHOLD:

• IT IS SHORTLY DENOTED AS LIHTC.
• it provide3s an incentive for home devolopers.
• to low icome tax payers for the needs like building home,buying things.
• it is the tax reform act oh 1986.
• it is used for housing projects including maximum income guidelines.
• a project must commit to renting to tenants earning less on average
• meadian income in the area of 15 period.

THEREFORE THIS IS THE LOW INCOME HOUSEHOLDING BY THE GOVERNMENT......

OPTIMAL TAX THEORY:

• It s a study of designing and implementing a tax.
• it is required to fund the provision of public goods.
• the optimisation problem involves minimising the DISTORTIONS caused by taxation.

???????RAMSEY,S OPTIMAL FORMULA:

  p1=ai-bixi

INCOME REDISTRIBUTION:

• IT IS AN ECONOMIC PRACTISE.
• it is aimed at leveling the distribution of wealth or icomes.
• government abopt economic policies and strategies like PROGRESSIVE TAXATION.
• IT DOES NOT TAKE AWAY THE HARD EARNED PROPERTIES OF PEOPLE.
• the main example for income redistribution is PROGRESSIVE TAX SYSTEM.
• OVER THE year it is not only done by the government alone.
• also by some of the organisations.

???????SO THESE ARE THE FUNCTIONS MADE BY THE GOVERNMENT RAGARDING REDISTRIBUTION......

TOP MARGINAL TAX RATE:

• ???????IN 1932 THE TOP MARGINAL TAX RATE is increased to 63% .
• IN 1944 THE TOP MARGINAL RATE INCREASED TO 94%.
• The maximum marginal tax rate in india is 42.744 %.
• it is calculated on the basis of our income.

According to me marginal tax rate is increasing year by year.itb is from 5% to 30

%.our firsst part of the tax rate ensured at 20 percent tax.

THEREFORE THESE ARE THE INFORMATONS GIVEN BY THE GOVERNMENT REAGARDING  TAX,TRANSFERS,MARGINAL RATE,OPTIMAL TAX RATE,LOW INCOME HOUSE HOLDINGS ETC......

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