why is corporate tax included while wstimating national income even after it being a transfer payment?

Asked by anjali_tripathi1999 | 10th Apr, 2017, 03:33: PM

Expert Answer:

Hi Anjali,

The corporate tax is included in the estimation of national income because the corporate tax is paid by the private enterprises to the government which are not received by the households.  The income earned by both private individuals and public sector plus the net factor income abroad is the National income of a country

Answered by Tharageswari S | 10th Apr, 2017, 04:57: PM