Question

What is the debt per capita ratio?    What is its meaning for taxpayers?    Would you find...

  1. What is the debt per capita ratio?   
    What is its meaning for taxpayers?   
    Would you find this useful if you were considering moving into a new city?

please add references on your respond

Homework Answers

Answer #1

Debt per capita ratio signifies a measure of how much debt a government has per citizen.

Debt capita Ratio = (Short term debt+Long term Debt- Cash and other liquid assets)/ Population

For taxpayer , it means that how much each taxpayer would owe the country if the country gets into a situation to pay off its national debt. It is indicator of real individual liability.

Yes, it is useful if one is considering to move into a new city , he will be a tax payer of the new city as this is often calculated at the national level, but it also applies at the state and even municipal government level, because if in case of urgency to the country he has to pay a certain amount to the country so that the country can pay off its national debt. The liability of every taxpayer, currently, and future, increases as the national debt grows.

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