Author Question: The tax deductibility of employer-provided health insurance is a primary factor in the spread of ... (Read 109 times)

Sufayan.ah · **on:** Jul 1, 2018

The tax deductibility of employer-provided health insurance is a primary factor in the spread of health insurance during the latter half of the twentieth century.

a. True b. False

Question 2

Explain why tariffs are a primary revenue source for less-developed countries but not for developed countries.

What will be an ideal response?

ankilker · **Reply #1 on:** Jul 1, 2018

Answer to Question 1

a

Answer to Question 2

In less-developed countries, it is difficult to monitor things like income and internal transactions, but relatively easier to monitor international transactions. Since monitoring is easier on goods crossing the border, less-developed countries end up generating a large portion of their revenue through tariffs. In developed countries, it is far easier to monitor taxpayer income and, given the far greater revenue potential from taxing income, developed countries are more likely to raise a considerable amount of revenue from income taxes.