Question

What advantages and disadvantages are associated with diversifying a local revenue structure so that it includes...

What advantages and disadvantages are associated with diversifying a local revenue structure so that it includes local slaes or income taxes in addition to a local property tax?

Homework Answers

Answer #1

Advantages :

  • Diversification benefit of additional sources of revenue. Any slump in the property market will less of an impact on local revenue
  • The burden of generation of local revenue will not be borne by property owners alone, but by a wider section of the population
  • Higher local revenue is generated, which means more funds available for local infrastructure, repairs, maintenance, and other productive expenses

Disadvantages :

  • More taxes means more regulatory compliance, which is burdensome and an unproductive activity
  • Higher tax burden on locals can lead to discontent
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. What are the advantages/disadvantages associated with the residual dividend policy? How to solve the dividend...
1. What are the advantages/disadvantages associated with the residual dividend policy? How to solve the dividend policy problems caused by the residual dividend model? 2. Discuss how corporate tax and individual income tax affect corporate dividend policy.
What are the basic building blocks of structure? What are the advantages and disadvantages of each?
What are the basic building blocks of structure? What are the advantages and disadvantages of each?
Q51 What are the advantages and disadvantages associated with a network organization? [4 Marks]
Q51 What are the advantages and disadvantages associated with a network organization? [4 Marks]
2. What are the advantages and disadvantages associated with fixed rate and variable rate mortgages?
2. What are the advantages and disadvantages associated with fixed rate and variable rate mortgages?
What are some of the advantages and disadvantages for an affiliated group of corporations to file...
What are some of the advantages and disadvantages for an affiliated group of corporations to file a consolidated income taxes return ?
What are the advantages and disadvantages of using a source like Wikipedia on the early stages...
What are the advantages and disadvantages of using a source like Wikipedia on the early stages of research? What are the advantages and disadvantages of local interviews as a source of information on a topic?
The profile of local sales and income tax revenues over time differs from that of local...
The profile of local sales and income tax revenues over time differs from that of local real property taxes. How would those differences influence the revenue structure that a local government should adopt?
What are the advantages associated with taking the pension payouts in the from of an annuity...
What are the advantages associated with taking the pension payouts in the from of an annuity what are the disadvantages
For my Business Policy Class: 1- What kinds of advantages and disadvantages are associated with the...
For my Business Policy Class: 1- What kinds of advantages and disadvantages are associated with the size of an organization? 2- How do the financial analysis of a firm influence its strategic options? 3- Suggest some specific means by which business can strengthen their positions and develop distinctive competencies. 4- “Business which develops formal strategic planning system will be more effective in achieving their objectives than those which do not”. Explain in detail why this is true.
For my Business Policy Class: 1- What kinds of advantages and disadvantages are associated with the...
For my Business Policy Class: 1- What kinds of advantages and disadvantages are associated with the size of an organization? 2- How do the financial analysis of a firm influence its strategic options? 3- Suggest some specific means by which business can strengthen their positions and develop distinctive competencies. 4- “Business which develops formal strategic planning system will be more effective in achieving their objectives than those which do not”. Explain in detail why this is true.