10 May WHAT IS THE DIFFERENCE BETWEEN CENTRALIZED AND DECENTRALIZED GOVERNMENT?
A Discussion Of Value Added Taxes1. A furniture manufacturer sells $500 000 worth of tables chairs and other items in a given year. The manufacturer earns a profit of $100 000 that year. His purchase invoices indicate that he bought $200 000 worth of lumber varnish nails and other materials during the year. His labor costs were $150 000 and he purchased $50 000 of new equipment that year. Calculate his tax liability under a 15% consumption type VAT. Give examples of different types of alternative VATs and explain their use.2. What is a VAT? Give an example of VAT in other nations. 3. What is the difference between centralized and decentralized government? What are the advantages of a federal system of government?
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