Chapter 1, Problem 8DQ

The ideal taxation system is a good tax system, that is, it must complygovernment needs whose spending is increasing over time, which can encouragesociety to achieve the optimal allocation of resources, which can lead to their achievementequitable distribution of income and wealth and enables the implementation of economic stability.The ideal taxation is taxation that can direct the utilization of economic surplus forachieve optimal and dynamic use of economic resources.Please explain what kind of tax is the best and can be used assource of government revenue or financing in carrying out its tasks to achieveand improve people's welfare!

In practice, external factors can impact a capital investment. Give a current external factor that may currently Impact or cause instability of capital spending either here or abroad.

Holding other factors constant, an increase in the tax rate on revenue generated by capital will: Group of answer choices not affect investment. increase business expenditure. decrease investment. increase investment.

Do you believe that the cash flows from the sale of an investment should also include the tax effect of the sale? Explain. Do you believe the cash flows from investing activities should include not only the return of investment, but also the return on investment, that is the interest and dividend revenue? Explain.

Explain economic impact of the capital market?

How are human and physical capital investment decisions similar? How do they differ? What determines the profitability of a physical capital investment? Do human capital investors make profits? If so, what is the source of the profit? Explain.

Regarding the trade-off theory, capital structure is a trade-off between: tangible and intangible asset risk. tax savings and financial distress costs. high and low target debt ratios. tax shields and equity financing.