Number of replies: 2
If a situation changes at work where people are unmotivated to keep working because of an ongoing problem, I would step in and be the reasonable voice so that all employees perceive motivation (Nash, 2015). This act of motivating other workers is an example of such a leadership activity since leaders are expected to be role models for their staff.
I’d like to provide an instance of leadership capabilities experience I gained while studying for my Corporate Finance test (Lemire,2015). This subject required teamwork and collaboration in my classes. I made every effort to act as a leader whenever feasible since it enabled me to hone my communication, delegating, and time management skills while also allowing me to manage numerous projects and deadlines. My team and I received high scores in the class because I devised a strategy and timetable to achieve our goals and allocated work to my team members based on their skills. This behavior qualifies as leadership since it involves administration and delegating, as well as a goal-oriented emphasis.
Obvious examples below focus on taking the initiative to achieve something significant and involve others in the effort. Starting an employee network organization, a recycling drive, an employee or student study club, or arranging a field trip are all examples. Both the feature of initiative and the ability to influence others show the practice of leadership.
In conclusion, there were a few minor hitches on the day—we momentarily ran out of ice but since everything else had been planned and communicated in advance, the function went off without a hitch, and everybody was able to react to last-minute modifications (Arzouman, 2015). After the event, I received a lot of positive comments from employees at all levels of the organization, both in person and in notes. Everyone stated they had a fantastic time!”
References
Arzouman, J. (2015). Leadership. Medsurg Nursing, 24(1), 5, 22. http://search.proquest.com/docview/1655503204/
Lemire, F. (2015). Leadership. Canadian Family Physician Medecin de Famille Canadien, 61(10), 920, 919.
Nash, J. (2015). Leadership. Journal of Trauma Nursing, 22(6), 291–292. https://doi.org/10.1097/JTN.0000000000000168
Nagender Kasina – Saturday, 30 October 2021, 1:13 PM
Number of replies: 1
Exerted leadership is the one where they will get influenced by the other people. This will have the effect on the entire organization and the work that is being implemented in the company. For this reason, I want to give an example where this will provide the clear understanding on the exerted leadership so that the others will also come to know about the disadvantages that the company can face with the help of making use of the exerted leadership. It is important for the companies to have the look on the leadership style that is being used by them. In the task of developing the project, I have experienced this situation. In general, the leader should have to divide the work based on their capabilities and the skills that are present with them. But in this case, the reverse had happened. The one who is closer to the leader had given the role that is being required by them instead of looking into the skills that are present with them which is a major disadvantage for the company. They have not seen the consequences that will be faced by the company with the help of making use of this, but they will satisfy their friends which can be clearly considered as the exerted leadership (Steinar & Shradul, 2002).
In the leadership, I am having the role to act in it. In this, the role that is given to me is to monitor the employees who are involved in the development of the project. In the employee is not doing the work properly, then it is a difficult task for the company to see the development in the work that is being done and the role that I have assigned to me needs to work with the formal manner so that this will be helpful for the organization (Zohar et al, 2008).
References
Andresen, S. & Agarwala, S. (2002). Leaders, pushers and laggards in the making of the climate regime. Retrieved from,
https://www.sciencedirect.com/science/article/abs/pii/S0959378001000231
Zohar et al., (2008). Transformational leadership and group interaction as climate antecedents: A social network analysis. Retrieved from,
https://psycnet.apa.org/buy/2008-09088-003[supanova_question]
Kingdom of Saudi Arabia Ministry of Education Saudi Electronic University ??????? ???????
Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University
??????? ??????? ????????
????? ???????
??????? ???????? ???????????
College of Administrative and Financial Sciences
Assignment 2
ECON201 (1st Term 2021-2022)
Deadline: 15/11/2021 @ 23:59
Course Name: Macroeconomics
Student’s Name:
Course Code: ECON201
Student’s ID Number:
Semester: I
CRN:
Academic Year: 1442/1443 H, 1st Term
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: / 5
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
This assignment is an individual assignment.
Due date for Assignment 2 is 15th November 2021.
The Assignment must be submitted only in WORD format via allocated folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.
Assignment Purposes/Learning Outcomes:
After completion of Assignment-2 students will able to understand the
LO 1.2: Describe how to evaluate macroeconomic conditions such as unemployment,
inflation, and Growth
LO 1.3: Recognize the fundamental determinant’s of a nation’s long-run economic
growth.
Assignment 2 Questions: Week 6 to Week 10: – [5 Marks]
Assignment 2
Case Study
When taxes induce people to change their behaviour—such as inducing Jane to buy less pizza—the taxes cause deadweight losses and make the allocation of resources less efficient. As we have already seen, much government revenue comes from the individual income tax in many countries. In a case study in Chapter 8, we discussed how this tax discourages people from working as hard as they otherwise might. Another inefficiency caused by this tax is that it discourages people from saving.
Consider a person 25 years’ old who is considering saving $1,000. If he puts this money in a savings account that earns 8 percent and leaves it there, he would have $21,720 when he retires at age 65. Yet if the government taxes one-fourth of his interest income each year, the effective interest rate is only 6 percent. After 40 years of earning 6 percent, the $1,000 grows to only $10,290, less than half of what it would have been without taxation. Thus, because interest income is taxed, saving is much less attractive.
Some economists advocate eliminating the current tax system’s disincentive toward saving by changing the basis of taxation. Rather than taxing the amount of income that people earn, the government could tax the amount that people spend.
Under this proposal, all income that is saved would not be taxed until the saving is later spent. This alternative system, called a consumption tax, would not distort people’s saving decisions.
Various provisions of the current tax code already make the tax system a bit like a consumption tax. Taxpayers can put a limited amount of their saving into special accounts—such as Individual Retirement Accounts and 401(k) plans—that escape taxation until the money is withdrawn at retirement. For people who do most of their saving through these retirement accounts, their tax bill is, in effect, based on their consumption rather than their income.
European countries tend to rely more on consumption taxes than does the United States. Most of them raise a significant amount of government revenue through a value-added tax, or a VAT. A VAT is like the retail sales tax that many U.S. states use, but rather than collecting all of the tax at the retail level when the consumer buys the final good, the government collects the tax in stages as the good is being produced (that is, as value is added by firms along the chain of production). Various U.S. policymakers have proposed that the tax code move further in direction of taxing consumption rather than income. In 2005, economist Alan Greenspan, then Chairman of the Federal Reserve, offered this advice to a presidential commission on tax reform: “As you know, many economists believe that a consumption tax would be best from the perspective of promoting economic growth—particularly if one were designing a tax system from scratch—because a consumption tax is likely to encourage saving and capital formation. However, getting from the current tax system to a consumption tax raises a challenging set of transition issues.”
1: What should be taxed – Personal Income or Personal Consumption and why? Provide your opinion based on the case. (200 words) [1.5 Marks]
2: How may it affect Saudi Economy if an income tax is imposed in KSA?
(200 words) [1.5 Marks]
Q2: Saudi Arabia’s Ministry of Human Resources recently announced an increase to the monthly minimum wage from 3000 SAR to 4000 SAR for full-time Saudi workers in April 2021, and introduced a Labor Reform Initiative (LRI) scheduled to take effect on 14th March 2021. [2 Marks]
Discuss the implications of the above topic.
Will this impact unemployment in the country? How?
Answer:[supanova_question]
Kingdom of Saudi Arabia Ministry of Education Saudi Electronic University ??????? ???????
Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University
??????? ??????? ????????
????? ???????
??????? ???????? ???????????
College of Administrative and Financial Sciences
Assignment 2
ECON201 (1st Term 2021-2022)
Deadline: 15/11/2021 @ 23:59
Course Name: Macroeconomics
Student’s Name:
Course Code: ECON201
Student’s ID Number:
Semester: I
CRN:
Academic Year: 1442/1443 H, 1st Term
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: / 5
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
This assignment is an individual assignment.
Due date for Assignment 2 is 15th November 2021.
The Assignment must be submitted only in WORD format via allocated folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.
Assignment Purposes/Learning Outcomes:
After completion of Assignment-2 students will able to understand the
LO 1.2: Describe how to evaluate macroeconomic conditions such as unemployment,
inflation, and Growth
LO 1.3: Recognize the fundamental determinant’s of a nation’s long-run economic
growth.
Assignment 2 Questions: Week 6 to Week 10: – [5 Marks]
Assignment 2
Case Study
When taxes induce people to change their behaviour—such as inducing Jane to buy less pizza—the taxes cause deadweight losses and make the allocation of resources less efficient. As we have already seen, much government revenue comes from the individual income tax in many countries. In a case study in Chapter 8, we discussed how this tax discourages people from working as hard as they otherwise might. Another inefficiency caused by this tax is that it discourages people from saving.
Consider a person 25 years’ old who is considering saving $1,000. If he puts this money in a savings account that earns 8 percent and leaves it there, he would have $21,720 when he retires at age 65. Yet if the government taxes one-fourth of his interest income each year, the effective interest rate is only 6 percent. After 40 years of earning 6 percent, the $1,000 grows to only $10,290, less than half of what it would have been without taxation. Thus, because interest income is taxed, saving is much less attractive.
Some economists advocate eliminating the current tax system’s disincentive toward saving by changing the basis of taxation. Rather than taxing the amount of income that people earn, the government could tax the amount that people spend.
Under this proposal, all income that is saved would not be taxed until the saving is later spent. This alternative system, called a consumption tax, would not distort people’s saving decisions.
Various provisions of the current tax code already make the tax system a bit like a consumption tax. Taxpayers can put a limited amount of their saving into special accounts—such as Individual Retirement Accounts and 401(k) plans—that escape taxation until the money is withdrawn at retirement. For people who do most of their saving through these retirement accounts, their tax bill is, in effect, based on their consumption rather than their income.
European countries tend to rely more on consumption taxes than does the United States. Most of them raise a significant amount of government revenue through a value-added tax, or a VAT. A VAT is like the retail sales tax that many U.S. states use, but rather than collecting all of the tax at the retail level when the consumer buys the final good, the government collects the tax in stages as the good is being produced (that is, as value is added by firms along the chain of production). Various U.S. policymakers have proposed that the tax code move further in direction of taxing consumption rather than income. In 2005, economist Alan Greenspan, then Chairman of the Federal Reserve, offered this advice to a presidential commission on tax reform: “As you know, many economists believe that a consumption tax would be best from the perspective of promoting economic growth—particularly if one were designing a tax system from scratch—because a consumption tax is likely to encourage saving and capital formation. However, getting from the current tax system to a consumption tax raises a challenging set of transition issues.”
1: What should be taxed – Personal Income or Personal Consumption and why? Provide your opinion based on the case. (200 words) [1.5 Marks]
2: How may it affect Saudi Economy if an income tax is imposed in KSA?
(200 words) [1.5 Marks]
Q2: Saudi Arabia’s Ministry of Human Resources recently announced an increase to the monthly minimum wage from 3000 SAR to 4000 SAR for full-time Saudi workers in April 2021, and introduced a Labor Reform Initiative (LRI) scheduled to take effect on 14th March 2021. [2 Marks]
Discuss the implications of the above topic.
Will this impact unemployment in the country? How?
Answer:[supanova_question]
Kingdom of Saudi Arabia Ministry of Education Saudi Electronic University ??????? ???????
Writing Assignment Help Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University
??????? ??????? ????????
????? ???????
??????? ???????? ???????????
College of Administrative and Financial Sciences
Assignment 2
ECON201 (1st Term 2021-2022)
Deadline: 15/11/2021 @ 23:59
Course Name: Macroeconomics
Student’s Name:
Course Code: ECON201
Student’s ID Number:
Semester: I
CRN:
Academic Year: 1442/1443 H, 1st Term
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: / 5
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
This assignment is an individual assignment.
Due date for Assignment 2 is 15th November 2021.
The Assignment must be submitted only in WORD format via allocated folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.
Assignment Purposes/Learning Outcomes:
After completion of Assignment-2 students will able to understand the
LO 1.2: Describe how to evaluate macroeconomic conditions such as unemployment,
inflation, and Growth
LO 1.3: Recognize the fundamental determinant’s of a nation’s long-run economic
growth.
Assignment 2 Questions: Week 6 to Week 10: – [5 Marks]
Assignment 2
Case Study
When taxes induce people to change their behaviour—such as inducing Jane to buy less pizza—the taxes cause deadweight losses and make the allocation of resources less efficient. As we have already seen, much government revenue comes from the individual income tax in many countries. In a case study in Chapter 8, we discussed how this tax discourages people from working as hard as they otherwise might. Another inefficiency caused by this tax is that it discourages people from saving.
Consider a person 25 years’ old who is considering saving $1,000. If he puts this money in a savings account that earns 8 percent and leaves it there, he would have $21,720 when he retires at age 65. Yet if the government taxes one-fourth of his interest income each year, the effective interest rate is only 6 percent. After 40 years of earning 6 percent, the $1,000 grows to only $10,290, less than half of what it would have been without taxation. Thus, because interest income is taxed, saving is much less attractive.
Some economists advocate eliminating the current tax system’s disincentive toward saving by changing the basis of taxation. Rather than taxing the amount of income that people earn, the government could tax the amount that people spend.
Under this proposal, all income that is saved would not be taxed until the saving is later spent. This alternative system, called a consumption tax, would not distort people’s saving decisions.
Various provisions of the current tax code already make the tax system a bit like a consumption tax. Taxpayers can put a limited amount of their saving into special accounts—such as Individual Retirement Accounts and 401(k) plans—that escape taxation until the money is withdrawn at retirement. For people who do most of their saving through these retirement accounts, their tax bill is, in effect, based on their consumption rather than their income.
European countries tend to rely more on consumption taxes than does the United States. Most of them raise a significant amount of government revenue through a value-added tax, or a VAT. A VAT is like the retail sales tax that many U.S. states use, but rather than collecting all of the tax at the retail level when the consumer buys the final good, the government collects the tax in stages as the good is being produced (that is, as value is added by firms along the chain of production). Various U.S. policymakers have proposed that the tax code move further in direction of taxing consumption rather than income. In 2005, economist Alan Greenspan, then Chairman of the Federal Reserve, offered this advice to a presidential commission on tax reform: “As you know, many economists believe that a consumption tax would be best from the perspective of promoting economic growth—particularly if one were designing a tax system from scratch—because a consumption tax is likely to encourage saving and capital formation. However, getting from the current tax system to a consumption tax raises a challenging set of transition issues.”
1: What should be taxed – Personal Income or Personal Consumption and why? Provide your opinion based on the case. (200 words) [1.5 Marks]
2: How may it affect Saudi Economy if an income tax is imposed in KSA?
(200 words) [1.5 Marks]
Q2: Saudi Arabia’s Ministry of Human Resources recently announced an increase to the monthly minimum wage from 3000 SAR to 4000 SAR for full-time Saudi workers in April 2021, and introduced a Labor Reform Initiative (LRI) scheduled to take effect on 14th March 2021. [2 Marks]
Discuss the implications of the above topic.
Will this impact unemployment in the country? How?
Kingdom of Saudi Arabia Ministry of Education Saudi Electronic University ??????? ???????
Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University
??????? ??????? ????????
????? ???????
??????? ???????? ???????????
College of Administrative and Financial Sciences
Assignment 2
ECON201 (1st Term 2021-2022)
Deadline: 15/11/2021 @ 23:59
Course Name: Macroeconomics
Student’s Name:
Course Code: ECON201
Student’s ID Number:
Semester: I
CRN:
Academic Year: 1442/1443 H, 1st Term
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: / 5
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
This assignment is an individual assignment.
Due date for Assignment 2 is 15th November 2021.
The Assignment must be submitted only in WORD format via allocated folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.
Assignment Purposes/Learning Outcomes:
After completion of Assignment-2 students will able to understand the
LO 1.2: Describe how to evaluate macroeconomic conditions such as unemployment,
inflation, and Growth
LO 1.3: Recognize the fundamental determinant’s of a nation’s long-run economic
growth.
Assignment 2 Questions: Week 6 to Week 10: – [5 Marks]
Assignment 2
Case Study
When taxes induce people to change their behaviour—such as inducing Jane to buy less pizza—the taxes cause deadweight losses and make the allocation of resources less efficient. As we have already seen, much government revenue comes from the individual income tax in many countries. In a case study in Chapter 8, we discussed how this tax discourages people from working as hard as they otherwise might. Another inefficiency caused by this tax is that it discourages people from saving.
Consider a person 25 years’ old who is considering saving $1,000. If he puts this money in a savings account that earns 8 percent and leaves it there, he would have $21,720 when he retires at age 65. Yet if the government taxes one-fourth of his interest income each year, the effective interest rate is only 6 percent. After 40 years of earning 6 percent, the $1,000 grows to only $10,290, less than half of what it would have been without taxation. Thus, because interest income is taxed, saving is much less attractive.
Some economists advocate eliminating the current tax system’s disincentive toward saving by changing the basis of taxation. Rather than taxing the amount of income that people earn, the government could tax the amount that people spend.
Under this proposal, all income that is saved would not be taxed until the saving is later spent. This alternative system, called a consumption tax, would not distort people’s saving decisions.
Various provisions of the current tax code already make the tax system a bit like a consumption tax. Taxpayers can put a limited amount of their saving into special accounts—such as Individual Retirement Accounts and 401(k) plans—that escape taxation until the money is withdrawn at retirement. For people who do most of their saving through these retirement accounts, their tax bill is, in effect, based on their consumption rather than their income.
European countries tend to rely more on consumption taxes than does the United States. Most of them raise a significant amount of government revenue through a value-added tax, or a VAT. A VAT is like the retail sales tax that many U.S. states use, but rather than collecting all of the tax at the retail level when the consumer buys the final good, the government collects the tax in stages as the good is being produced (that is, as value is added by firms along the chain of production). Various U.S. policymakers have proposed that the tax code move further in direction of taxing consumption rather than income. In 2005, economist Alan Greenspan, then Chairman of the Federal Reserve, offered this advice to a presidential commission on tax reform: “As you know, many economists believe that a consumption tax would be best from the perspective of promoting economic growth—particularly if one were designing a tax system from scratch—because a consumption tax is likely to encourage saving and capital formation. However, getting from the current tax system to a consumption tax raises a challenging set of transition issues.”
1: What should be taxed – Personal Income or Personal Consumption and why? Provide your opinion based on the case. (200 words) [1.5 Marks]
2: How may it affect Saudi Economy if an income tax is imposed in KSA?
(200 words) [1.5 Marks]
Q2: Saudi Arabia’s Ministry of Human Resources recently announced an increase to the monthly minimum wage from 3000 SAR to 4000 SAR for full-time Saudi workers in April 2021, and introduced a Labor Reform Initiative (LRI) scheduled to take effect on 14th March 2021. [2 Marks]
Discuss the implications of the above topic.
Will this impact unemployment in the country? How?
Answer:[supanova_question]
Kingdom of Saudi Arabia Ministry of Education Saudi Electronic University ??????? ???????
Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University
??????? ??????? ????????
????? ???????
??????? ???????? ???????????
College of Administrative and Financial Sciences
Assignment 2
ECON201 (1st Term 2021-2022)
Deadline: 15/11/2021 @ 23:59
Course Name: Macroeconomics
Student’s Name:
Course Code: ECON201
Student’s ID Number:
Semester: I
CRN:
Academic Year: 1442/1443 H, 1st Term
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: / 5
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
This assignment is an individual assignment.
Due date for Assignment 2 is 15th November 2021.
The Assignment must be submitted only in WORD format via allocated folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.
Assignment Purposes/Learning Outcomes:
After completion of Assignment-2 students will able to understand the
LO 1.2: Describe how to evaluate macroeconomic conditions such as unemployment,
inflation, and Growth
LO 1.3: Recognize the fundamental determinant’s of a nation’s long-run economic
growth.
Assignment 2 Questions: Week 6 to Week 10: – [5 Marks]
Assignment 2
Case Study
When taxes induce people to change their behaviour—such as inducing Jane to buy less pizza—the taxes cause deadweight losses and make the allocation of resources less efficient. As we have already seen, much government revenue comes from the individual income tax in many countries. In a case study in Chapter 8, we discussed how this tax discourages people from working as hard as they otherwise might. Another inefficiency caused by this tax is that it discourages people from saving.
Consider a person 25 years’ old who is considering saving $1,000. If he puts this money in a savings account that earns 8 percent and leaves it there, he would have $21,720 when he retires at age 65. Yet if the government taxes one-fourth of his interest income each year, the effective interest rate is only 6 percent. After 40 years of earning 6 percent, the $1,000 grows to only $10,290, less than half of what it would have been without taxation. Thus, because interest income is taxed, saving is much less attractive.
Some economists advocate eliminating the current tax system’s disincentive toward saving by changing the basis of taxation. Rather than taxing the amount of income that people earn, the government could tax the amount that people spend.
Under this proposal, all income that is saved would not be taxed until the saving is later spent. This alternative system, called a consumption tax, would not distort people’s saving decisions.
Various provisions of the current tax code already make the tax system a bit like a consumption tax. Taxpayers can put a limited amount of their saving into special accounts—such as Individual Retirement Accounts and 401(k) plans—that escape taxation until the money is withdrawn at retirement. For people who do most of their saving through these retirement accounts, their tax bill is, in effect, based on their consumption rather than their income.
European countries tend to rely more on consumption taxes than does the United States. Most of them raise a significant amount of government revenue through a value-added tax, or a VAT. A VAT is like the retail sales tax that many U.S. states use, but rather than collecting all of the tax at the retail level when the consumer buys the final good, the government collects the tax in stages as the good is being produced (that is, as value is added by firms along the chain of production). Various U.S. policymakers have proposed that the tax code move further in direction of taxing consumption rather than income. In 2005, economist Alan Greenspan, then Chairman of the Federal Reserve, offered this advice to a presidential commission on tax reform: “As you know, many economists believe that a consumption tax would be best from the perspective of promoting economic growth—particularly if one were designing a tax system from scratch—because a consumption tax is likely to encourage saving and capital formation. However, getting from the current tax system to a consumption tax raises a challenging set of transition issues.”
1: What should be taxed – Personal Income or Personal Consumption and why? Provide your opinion based on the case. (200 words) [1.5 Marks]
2: How may it affect Saudi Economy if an income tax is imposed in KSA?
(200 words) [1.5 Marks]
Q2: Saudi Arabia’s Ministry of Human Resources recently announced an increase to the monthly minimum wage from 3000 SAR to 4000 SAR for full-time Saudi workers in April 2021, and introduced a Labor Reform Initiative (LRI) scheduled to take effect on 14th March 2021. [2 Marks]
Discuss the implications of the above topic.
Will this impact unemployment in the country? How?
Answer:[supanova_question]