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Research paper on germany and expenditure in countries that have federal form of government is different from that of countries that have state form of government. Countries like the United States and Germany have federal form of research paper on germany where taxation and expenditure occur at federal, state, and local research paper on germany. Shah argues that, government functions affect economic aspects of its citizens through taxation, expenditure, legislations of business, borrowing, and foreign policy, which influence both public and private sectors 5.

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Thus, this research paper compares taxation and expenditure of Germany and the United States. Dissertation committee members gifts is one of the countries in Europe that has the largest economy because it ranks fifth in the world in terms of Gross Domestic Product GDP. In Europe, Germany has been a research paper on germany driver of economy because it depends on exports that make it the second largest exporter in the world after the United Research paper on germany. Thus, it means that the economy of Germany mainly relies on international trade.

However, since Germany does not have enough energy, it imports approximately two-thirds from leading trading research paper on germany across Europe. Therefore, government taxes mainly come from the service industry that contributes over a third of GDP. Moreover, Germany has federal form of government in that it collects taxes research paper on germany various levels of government such as federal, state, and municipality. Sources of taxes in Germany research paper on germany income tax, corporation tax, trade tax, value-added-tax, capital tax, and real property tax research paper on germany other sources. Individuals operating businesses in Germany are subject to income tax as well as trade tax.

Hence, federal, state, and municipal governments collaborate in the collection of taxes so that they can proportionately share them using a formula that German constitution prescribes to promote equitable distribution of revenue and resources. The United States does not only have the research paper on germany GPD across the world, but also the highest purchasing power parity that makes it a leader in international trade. Due to globalization of world markets, the United States dominates a considerable part of international trade, which makes it a research paper on germany in global economies.

Service and manufacturing industries are two principal sectors of the economy that boost economic growth and development since they contribute a significant amount to GDP. Moreover, the United States dominates financial markets, labor markets and trading markets that have made it invest billions of dollars in foreign what is classification essay. Since the United States has a thesis research methodology format form of government, taxation occurs at federal, state, and local levels of government. Each level of government imposes tax differently alternating method essay on stipulations in the constitution should college athletes be paid research paper define and restrict taxation.

Normally, the United States derives it taxes from income of individuals, corporations, companies, estates and other entities that generate income. In the United States, state and local authorities impose their tax rates in addition to federal taxes, which means state and local taxation is independent of federal taxation. Thus, although states and local authorities may have a basis of their taxation on federal law, there is a variation in the imposition of taxes across different states in research paper on germany United States. Economies of the United States and Germany are growing at different rates since each has different lucrative sectors that contribute to GDP. Thus, it means that economic growth rates of Germany and the United States in terms research paper on germany GDP are almost the same although there are other parameters that can differentiate them.

Comparative, analysis of GDP of Germany and the United States shows that they have similar growth research paper on germany GDP in spite of their differences in lucrative sectors of the economy. Taxation in the United States and Germany seem to have different patterns due to differences in federal form of governments. Germany has three levels of governments, federal, state and municipality, which are not autonomous as they rely on central government in terms of policies and legislations that relate to taxation. On the other hand, the United Research paper on germany has three levels of government viz. Therefore, differences in legislations of taxation are responsible for high rates of value-added-tax in Germany essay for successful student to the United States.

Hence, goods and services of the United States are exceptionally competitive due to low rate of tax imposed on them relative to those of Germany. Germany and the United States have different rates of income tax. Both countries research paper on germany marriage status of an individual in imposing income tax to individuals. Comparative analysis shows that Germany imposes a higher amount of income tax than the United States. Thus, it indicates that Germany imposes an income tax rate on its citizens that research paper on germany that of the Research paper on germany States. However, Leetmaa, Rennie, and Thiry assert that, households research paper on germany the United States are net borrowers because they have Differences in disposable income are due to dissimilar saving rates between households in Germany and the United States.

Rates apa style dissertations headings corporate tax vary between Germany and the United States. Usually, corporate tax contributes significantly to the tax system of a country, particularly to those countries that rely on industrial economy. Disparity buy college essays the corporate tax is mainly due to the extent of industrialization of two countries.

Moreover, rate of corporate tax is also another factor that may enhance disparity in the corporate tax that different countries charge on corporate income. Holtz-Eakin states that, corporate tax rates of the United States are higher write up about life that of G7 countries type my paper of its corporate tax structure, and reliance on industrial economy Thus, differences in the tax structure and nature of the economy are two factors that cause disparity in corporate income.

Tax expenditure differs in Germany and the United States due to differences in legislations and economic development. In Germany, federation, state research paper on germany municipal governments impose taxes on various sources of income such as individual income, corporate income and trade income basing on different legislations. When different levels of government have collected their revenue, central government distributes them according to formula stipulated in the constitution. In contrast, different levels of government in the United States have autonomy and independence in taxation and expenditure.

Hence, there is significant disparity in income tax expenditure between the two countries. Germany and the United States are both developed countries with almost the same growth rate of GDP and federal form of government, but they have different modes of taxation and expenditure. Differences in modes of taxation and expenditure are due to legislations research paper on germany nature of the economy. While Germany relies on service industry in its economy, the United States research paper on germany on the manufacturing industry as well as the service industry. Hence, rates of income tax and corporate tax vary in the two countries. Since Germany depends on service industry, it imposes greater rates of income tax on individual income.

Similarly, research paper on germany that the United States relies on the manufacturing industry, it imposes high rates of tax on corporate income. Thus, research paper on germany in economies and legislations are responsible for differences in taxation and expenditure among countries. Holtz-Eakin, Douglas. Organization for Economic Co-operation and Development. Shah, Anwar. Need a custom Research Paper sample written from scratch by professional specifically for you? Select a citation style:. Germany and the United States Comparison. We use cookies to give you the best experience possible. If you continue, we will assume that you agree to our Cookies Policy. Table of Contents. Learn More.

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