8-мавзу. Бозор ва таваккалчилик

9.2 Government Spending and Taxation
Government plays a large role in the economy. That role increased markedly from 1925-1975.
Federal spending as a percentage of GDP has changed little since 1960, but the composition of government spending has changed considerably. National defense spending has fallen, but has risen again since September 11, 2001, and there has been a large increase in transfer payments for programs such as Social Security, Medicare and healthcare.
State and local spending differs greatly from federal spending. Education and public welfare account for 51 percent of their expenditures. Other important areas of spending include highways, utilities, police and fire protection.
Exhibit 1: Growth of Government Expenditures as a Percentage of GDP in the U.S., 1929-2005
Exhibit 2: Government Expenditures
How do governments obtain revenue? A large majority of government activity is financed by taxation. At the federal level, most taxes are on personal income and corporate income. Most remaining revenue comes from payroll taxes, such as those used to pay for Social Security and Medicare.
The U.S. government relies more heavily on income-based taxes than nearly any other government.
Exhibit 3: Tax Revenues

Progressive taxes, such as the federal income tax, require those with higher incomes to pay a greater proportion of their income in taxes. Regressive taxes, such as payroll taxes, take a greater proportion of the income of lower-income groups than higher-income groups. Adding together all taxes, the federal tax system is probably only slightly progressive.
Exhibit 4: Payroll Tax
Some consider excise taxes to be the least fair type of taxes. They impose a far greater burden, as a percentage of income, on the poor and middle class than on the wealthy, because low-income families spend a greater proportion of their income on such goods than do high income families. In addition, excise taxes may lead to economic inefficiencies.
State and local revenue sources include property taxes, sales and income taxes, federal government grants, and license fees and user charges (e.g., utilities and tuition).
Some believe that we should replace the current progressive income tax and replace it with a flat (proportional) tax. Everyone would pay the same percentage of their income.
A flat rate tax plan with a standard allowance would actually be progressive.
Advantages of a flat rate tax include simplicity, efficiency, the elimination of exemptions and deductions and the abuses that go with them, and releasing resources currently used looking for loopholes to productive use. Some versions, however, would hurt certain groups, who would not support the change. Other legitimate questions, such as the effects on charity and the housing sector, would also be raised.
Taxes for the most part are not efficient (except for internalizing externalities and providing public goods) because they change incentives and distort the values that buyers and sellers place on goods and services. Taxes can be inefficient because they may lead to less work, less saving, less investment, and lower output.
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Most people would agree that we should have a fair tax system based on either ability to pay or benefits received.