CAUSES, EFFECTS AND SOLUTION TO BUDGET DEFICIT

  THE  CAUSES,  EFFECTS  AND  SOLUTION  TO  BUDGET  DEFICIT MANILA,  August 23, 2004 (STAR) By Atty. Romeo G. Roxas - "To recapitulate, a recession or a contraction of the economy as reflected in a budget deficit is neither solved by the capping of governmental expenses nor by the imposition of more taxes upon the taxpayers to raise more revenues." Causes A budget deficit is a common occurrence in modern times as most governments could not sustain the corresponding level of revenues needed to support the budgetary requirements. The budgetary requirements are brought about and dictated by the rising needs and expectations of the country and people and government’s ultimate responsibility of meeting and servicing them. A budget deficit...

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TOBIN TAX'' CONCEPTUAL ANALYSIS.

  Tobin tax TEM-NICE IDISE LEARN MORE ABOUTTOBINTAX A Tobin tax, suggested by Nobel Laureate economist James Tobin, was originally defined as a tax on all spot conversions of one currency into another. The tax is intended to put a penalty on short-term financial round-trip excursions into another currency. Tobin suggested his currency transaction tax in 1972 in his Janeway Lectures at Princeton, shortly after the Bretton Woods system of monetary management ended in 1971.[1] Prior to 1971, one of the chief features of the Bretton Woods system was an obligation for each country to adopt a monetary policy that maintained the exchange rate of its currency within a fixed value—plus or minus one percent—in terms...

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