Question

why would employment rate and earnings be a source for revenue? I am currently doing forecasting using regression for Lowes.

Answer 1

Ans

To run a government in any country, money is required. The government imposes taxes directly, indirectly to obtain money. Income tax in direct taxes is an important source of income of the government. The higher the rate of employment, the higher the income of the people, after a certain limit, it is taxed. In order to reduce inequality and establish equality in the society and to provide benefits to the disadvantaged people, the tax is levied by the government on the people receiving more or more than a certain limit from which the government receives income and it spends these money in welfare works to provide benefits to the deprived section, along with income in the sources of revenue obtained by the government becomes an important source.Therefore, various laws are made by the government to get income tax.