Importance of English Essay Example for Free

Importance of English Essay Good morning, teacher and fellow students.Today I would like to talk to you about â€Å"the Importance of English.† First, English is the language for communication more than 1.5 billion people speaks this language everyday. It is indeed one of the most widely spoken languages in this world. Second, English is the language for Science and Technology many books are written in English. Many research papers are presented in English. If you are good in English, you were be able to give up with it latest development. Third, English is the language for travel if you ever travel oversea, you will understand it is importance .For example, you go to the airport-you read signs and directions in English .You checked into a hotel-you speak English with the receptionists .You go shopping-you bargain in English .You go to a restaurant-you order you food in English. Imagine just how difficult things can be if you can’t speak English well. Finale, English is the language for international business and trade. If you want to do business internationally, you were have to commence with your business associates in English, the better your English is the more business opportunities you were have. My conclusion is that everybody must learn this importance languages .You want be successful, MASTER ENGLISH! ! ! You want to have good career, MASTER ENGLISH! ! ! You want to make friend with people from all over the world, MASTER ENGLISH! ! ! If you successfully master English, You were have many more opportunities in life so make up you mind, pick up your book, open your mouth and start learning English today.

Amyotrophic Lateral Sclerosis (ALS): Improving Treatments

Amyotrophic Lateral Sclerosis (ALS): Improving Treatments Summary ALS is a progressive, fatal motoneurone disease, ultimately leading to paralysis and respiratory failure within 3-5 years. There is currently only one FDA-approved drug, Riluzole, but its lack of disease prolongation combined with the aggressive disease nature means identifying new treatments is essential. This review highlights 3 of the most current and promising research areas. Recent Phase 1 Clinical trials have proven safety of stem cell (SC) implantation in humans. Parallel rodent SC models show positive results in both decelerating disease progression and promoting anti-inflammatory neuronal protection. Supplementary use of growth factors also shows potential regarding motoneurone survival and dendrite length in cultures, and survival rates in mouse models. Knockout of glial xC- glutamate anti-porter significantly reduces excessive glutamate levels in neurones by 70%, compared to xC- +/+ microglia. Knockout also reduces levels of pro-inflammatory markers. These findings highlight vital role of xC- system in reducing neuronal glutamate excitotoxicity. Antisense technologies effectively reduced SOD1 protein and mRNA levels, consistent in CSF and brain of SOD1 rodent cortices. This supports SOD1 as a good biomarker for future antisense studies. Overall, there is promising research being conducted. However improvements in clinical trial techniques must be addressed in order to reliably compare findings from future studies, and allow identification of a cure in the future. Summary word count: 213 Introduction Also known as ‘Lou Gehrig’s Disease’, Amyotrophic Lateral Sclerosis (ALS) involves loss of upper and lower motoneurones from the brainstem and spinal cord. Symptoms progress from difficulty in limb movement to paralysis, and finally respiratory failure, the biggest cause of death in ALS. With a prevalence of approx. 2:100,000 and average onset age of 55 years, death usually occurs 3-5 years after onset. Although first identified in 1869 by Jean-Martin Charcot, there remain no conclusive disease causes. The disease is classified into 2 types: Familial ALS (fALS), the inherited form, is responsible for approx. 10% of all cases. There are a handful of genetic mutations linked to fALS, including: C90RF72, TDP-43, FUS, Ubiquilin-2, and currently most relevant in disease-models, Cu2+/Zn2+ Superoxide Dismutase (SOD1). Sporadic (sALS) form comprises the majority of cases, and this unknown nature of the disease makes targeted treatments challenging. Riluzole is currently the only FDA approved treatment for ALS, increasing life expectancy by 2 months. In 2011, ‘Nuedexta’ was also approved as a treatment for pseudobulbar effects in ND diseases. Patients must otherwise rely on palliative care to improve quality of life. This review will focus on the most current and widely researched areas. Proposed mechanisms of disease are beyond the scope of this review, but can be found in a review by Cleveland and Rothstein (2001). Stem Cell Therapy Due to its infamous potential, stem cell (SC) therapy is perhaps the most widely researched treatment area. SC therapy aims to improve symptoms rather than cure the disease, by either targeting re-growth of neurones or promoting their survival. Here we will focus on clinical and pre-clinical SC trials in the last 5 years. Direct neuronal replacement One proposed treatment method is to replace dying motoneurones with SCs. Recent Phase 1 Clinical Trials by Glass et al., (2012) and Feldman et al., (2014) studied the safety of lumbar and cervical SC injections, respectively. Both trials found good patient tolerance and sufficient safety to continue with future trials. Feldman et al. also used histochemical analysis to address concerns over unpredictable SC migration, by highlighting successfully transplanted SCs in spinal cord slices, Figure 1. Figure 1. B) Cross-section of spinal cord highlighting non-native cells C) Close-up shows morphology of cells consistent with pre-implanted SCs, indicative of successful transplantation into spinal cord. [Adapted from Feldman et al., 2014] Despite multiple limitations to the experimental technique, such as absence of a control group, results indicated early SC transplantation has a good chance of slowing disease progression in ALS patients, as 50% of patients showed improvement in 6-15 month post-trial check-ups. The corresponding Phase II Trial commenced in September 2013, and is due for completion this month. Figure 2 shows a previous study by Karussis et al., (2010) where SC injection leads to a significant increase in immune-regulatory cells (CD4+/CD25+) and an overall decreased immune response. Figure 2. Levels of neuronal cell inflammatory markers following injection of SCs [Adapted from Karussis et al., 2014] Reduction in immune response over 24hrs was in fact greater than seen in immunomodulatory medicines, suggesting additional mode of action for SC therapy. Neuronal survival via growth factor delivery Unsuccessful trials in the late 1990s to treat ALS with growth factors (GFs) prompted further studies into appropriate CNS targeting. Development of the SOD1-mutant rat model allowed Suzuki et al., in 2008, to address these delivery issues in a study using SCs as GF vectors. They found GF delivery to mid-stage SOD1 rodents showed increased neuromuscular connections, and a lifespan increase of 28 days, possibly due to reduced neuronal loss. Viral vectors for trophic factors (TFs) provide an alternative delivery route, and in 2010, Dodge et al., carried out mouse embryonic-SC motoneurone studies in which expression of TFs IGF-1 and VEGF-165 using viral vector, AAV4, allowed successful delivery of TFs to entirety of CNS. This slowed MN decline and increased mouse survival. Figure 3 shows initial culture studies using mouse-derived embryonic motoneurone SCs, showing clear protective action on neurones. Figure 3. A) 70% of motoneurones died in control, GFP-CM, compared to high survival with IGF-1-CM/VEGF-CM. B,C) IGF-1-CM/VEGF-CM treated motoneurones showed increased neurite length and survival rates compared to control. [Image from Dodge et al., 2010] Subsequent mouse studies showed increased survival and decelerated reduction in hindlimb grip-strength and stamina on the rotarod, seen in Figure 4. Figure 4. A,C,E) Mouse studies depicting neuroprotective action of TFs, IGF/VEGF vs control. [Image adapted from Dodge et al., 2010] It is worth noting that combined delivery of both TFs showed no synergistic effect, probably due to their affecting the same pathway. Subsequently, in 2013, Krakora et al., modified human mesenchymal SCs to further investigate synergistic effect of combined GFs. A synergistic effect between GDNF + VEGF was seen due to their action on different signalling cascades. This shows promise for future studies into improved neuronal survival. SC conclusions Phase-1 clinical-trials have shown safety of SC injection into CNS with promising, if unreliable, patient outcomes. The mechanism of improvement still unidentified, but hints at inflammatory regulation in neural protection may open an interesting avenue. GF application shows further potential based on rodent/mice studies with a proven effect at slowing disease progression and neuronal loss. SCs make suitable GF vectors as can be made to express/over-express GFs. Combining GF models with SC vectors for targeted delivery requires further exploration. Future trials must consider frequency, dose and administration technique. Neuronal Excitotoxicity Mouse ALS models by Beers et al., (2011) and Liao et al., (2012) indicate microglia conversion from M2 (anti-inflammatory) to M1 (pro-inflammatory) state during disease. Believed to be due to glutamate toxicity, therapeutic work should focus on reducing excessive neuronal glutamate level, and reducing resultant pro-inflammatory response. In 2014, Mesci et al., studied the xC- system; a glial antiporter exchanging cysteine for glutamate release, causing increased neuronal glutamate. The study aimed to show blocking xC- would reduce excessive glutamate release and affect M1/M2 state, to reduce inflammation. xCT (transporter gene) -/- mouse microglial studies demonstrated a significant 70% reduction in glutamate release compared to XC- +/+. Furthermore, Figure 5 shows significantly increased pro-inflammatory factors in xC- +/+ mice microglia compared to -/-, hinting at a shift towards the M1 microglial phenotype via xC-. Figure 5. A-E) Levels of M1 pro-inflammatory factors in xCT -/- vs +/+ mouse microglia [Image from Mesci et al., 2014] Interestingly, Mesci et al., also noted a 10-fold increase in anti-inflammatory M2 marker levels at pre-symptomatic phase in -/- mice which drops off at disease onset, indicating M1/M2 shift upon disease onset. Encouragingly, -/- microglia showed significant increase in motoneurone survival in -/- vs +/+ microglia, at 45% and 35% survival, respectively. This is indicative of a less neurotoxic environment. Finally, xC- -/- SOD1 mutated mice showed an overall deceleration in disease progression, shown by increased survival rates following advanced disease stage (20% weight loss) in Figure 6. Figure 6. Survival in advanced ALS in xC- +/+ and -/- SOD1 mice Neurotoxicity conclusions These anti-excitotoxicity findings are consistent with the action of Riluzole. Future drugs may target xC- system, however current antagonists are poorly specific and available to brain. Identification of a more suitable antagonist would be a good priority before further clinical trials. Antisense Technologies Antisense oligonucleotides (ASOs) bind to specific mRNA sequences to cause mRNA degradation. In 2013, Leah et al., conducted studies in SOD1 rodents and human subjects with neurodegenerative diseases. SOD1-targeting ASOs were introduced to subjects to reduce SOD1 levels. They found both SOD1 mRNA and protein fell by 69Â ±4% and 48Â ±14%, respectively, in rodent cortices. Interestingly, this matched reduced protein levels by 42Â ±14% in rodent CSF, indicating CSF levels are a good measure of levels in brain. Unfortuntely, SOD1 cannot be a specific ALS marker due to its presence in other neurodegenerative diseases. However, its observed constant levels over time supports SOD1 as a good biomarker in indicating efficacy of antisense technologies and its effective targeting by ASOs may be useful in measuring brain SOD1 levels via CSF levels in future studies. A Phase 1 Clinical Trial by Miller et al., (2013) to determine safety of single-dose intrathecal injection of ASOs found no safety concerns. However, liver cancer and neuropathy was previously seen in cases of chronic low SOD1 levels (Elchuri et al., 2005), so long-term dosage effects must be carefully monitored. Conclusions This review was restricted to three main research areas, but areas such as susceptibility gene identification, oxidative stress and protein misfolding, are also being explored. Current research shows promise, especially in SOD1 rodent models and positive safety data from Phase 1 Trials. SCs continue to have vast potential, and when combined with GFs have shown encouraging effects on disease progression in rodent models. Reliability of these studies, however, must be improved in order to draw accurate conclusions and compare findings from related studies. Ideally, a ‘standard trial protocol’ should be implemented. Trials must also consider long-term effects of reduced SOD1 levels (in antisense techniques) and immunosuppressant use (with stem cells). Some issues may possibly be alleviated by recent development of new autologous SC models (Meyers et al., 2014). In short, current ALS treatments remain palliative care and Riluzole, but with new developments continuously emerging there is definitely an exciting research landscape ahead. In October 2014, ALSA requested Phase II Trial proposals to accelerate work in this area, meaning that the race is on to find suitable ALS treatment that may help patient prognosis in the future. Word count: 1573 119/09/2016

The Social Contract Tradition: Hobbes, Locke, Rousseau :: Philosophy Philosophical Papers

The Social Contract Tradition: Hobbes, Locke, Rousseau ABSTRACT: The classical contract tradition of Hobbes, Locke, and Rousseau have enjoyed such fame and acceptance as being basic to the development of liberal democratic theory and practice that it would be heretical for any scholar, especially one from the fringes, to critique. But the contract tradition poses challenges that must be given the flux in the contemporary socio-political universe that at once impels extreme nationalism and unavoidable globalism. This becomes all the more important not in order to dislodge the primacy of loyalty and reverence to this tradition but from another perspective which hopes to encourage that the anchorage of disclosure be implemented. The contract tradition makes pronouncements on what is natural and what is nonnatural. It offers what many have contended are rigorous arguments for these pronouncements that are "intuitive," "empirical," "logical," "psychological," "moral," "religio-metaphysical." What I offer in this essay is a challenge from the outside. I ask: 1) on what empirical data are the material presuppositions of contractarianism built? 2) what is the epistemological foundation of contractarianism? 3) is contractarianism not derivable from any other form of sociological presupposition except that of the state of nature? 4) does any human know a "state of nature"? 5) given the answers to the above questions, to what extent are the legal and moral foundations of contractarianism sacrosanct? I attempt to answer these questions in what can only be a sketch, but my answers suggest that it is very presumptuous of contractarianist to suppose that they have captured the only logically valid basis of democratic practice universally. Introduction The classical social contract tradition of Hobbes, Locke and Rousseau have, in spite of their variation in themes and emphases, enjoyed such fame and acceptance as being basic to the development of liberal democratic theory and practice that it would be almost heresy for any scholar, especially one from the fringes or margins of mainstream (socio-political) philosophical academia, to post frontal, side, arial, rear or sub-surface attack and critique. But the social contract tradition poses challenges that must be accepted on various counts, with new insights and interpretations, given the fluxed reality in contemporary socio-political universe that at once impels extreme nationalism and unavoidable globalism. This becomes all the more important, not simply in order to dislodge the primacy of the loyalty and the reverence of devotion from the followers of this tradition

My Life with Thoreau Essay example -- How Education Has Changed My Life

It was my high school teacher, Anna Shaughnessy, who introduced me to Henry David Thoreau. His Walden was not part of the course of study. She asked whether I knew of this Massachusetts writer. I didn't. Without scaring me off by proclaiming how great he was, she said he had lived and died in obscurity. But not like some romantic poet in a dusty garret. He had done all kinds of work for a living-been a schoolteacher, surveyor, pencil-maker, gardener, carpenter, mason, lecturer, naturalist, as well as keeper of a personal journal into which he wrote two million words. "Thoreau was born in 1817, about a hundred years before you," Miss Shaughnessey said. "But I think, when you read him, you'll find his ideas, his way of looking at life, will mean as much to you as if he were born yeste...

Productive Opportunity Essay

Productive opportunities depends on multiple things, the advancement of technology, the availability and access to resources, and also what producers and entrepreneurs can think of at the given time. Choosing a combination of productive and financial opportunities help maximize wealth. They key in finding a productive opportunity is a high degree of awareness of the factors that distort judgment A perfect capital market is when buying and selling do not affect prices. â€Å"In a perfect capital market the corporation is regarded only as a means of generating wealth, because the present value of the dollar returns it generates is the only feature relevant to its owners.† Understanding your resource, resources is a source or supply from which an organization gains profit. Typically resources are materials or other assets that are transformed to produce benefit and in the process may be consumed or made unavailable. From a human perspective a natural resource is anything obtained from the environment to satisfy human needs and wants. Organizations operate by people making decisions. A manager plans and organizes a team by executing decisions. The effectiveness and quality of those decisions determines how successful a manager is. With this being said â€Å"the goal of the manager and owner remain the same as long as market value is maximized.† Opportunity is all around us but yet at the same time sometimes we never see it. In business we look for new ways to market our business, reach our target market, build on online community and through this all we overlook the opportunity that is all around us. We are learning to create opportunity my maximizing our market value. In conclusion, â€Å"in a perfect capital market, the market value of the ï ¬ rm is determined only by the cash ï ¬â€šows it can generate and not by the source of funds used to ï ¬ nance those operations. The task of management is to create wealth by ï ¬ nding productive opportunities with average rates of return exceeding the market rate of interest.† Fabozzi, Frank J. (2011-12-01). Financial Economics (Page 46). Wiley. Kindle Edition.

Lyle Alzado View of Steroid Use

Also I was undersized compared to the other players. After graduation no colleges gave me scholarships for playing football. Being undersized and playing averagely I wasn't the best athlete. I tried out for the Kilgore Junior College's football team in nineteen sixty four, but they told me that I wasn't good enough to play for them. I was finally accepted to Yankton College in South Dakota; I started taking steroids to play football better after being accepted, in order to play better and to insure my place on their football team.In nineteen seventy one I was the Denver Broncos fourth draft pick. I was a defensive lineman the same as in high school. I became a formidable player by the end of my rookie year. I outran, outwit, authenticated everybody. All along I was taking steroids and I saw that they made me play better and better. In nineteen seventy seven, I was named the Oaf's defensive player of the year and the defensive lineman of the year. I went from being and average player in high school, to being a feared professional football player in Just a few years.I was so wild about winning, it's all I cared about, I never talked about anything else, and steroids helped me keep on winning. In nineteen eighty four, I retired from football due to an injury to my Achilles tendon, which I believe was cause by my steroid use. I tried to make a comeback in nineteen ninety with the Raiders but I immediately had a knee injury that prevented me from playing. By the end of my football career I was name all-pro twice and had a total of ninety seven sacks In one hundred ninety six games. I had done well for someone who had no hope In high school of playing professional oddball.All during my college and professional football career I was taking steroids. I spent around thirty thousand dollars a year on steroids. All the time on the field I was fierce, mean, and determined to win, but off the field I had a hard time turning these emotions off. One of my teammates described me as have a split personality, â€Å"on the field he projected a tough image,† He said. But off the field I was like a gentle giant. When the game was over, I would be plagued with mood swings from the steroids; I could keep a good relationship with people.I was married four times over the course of my football career. Once a man sideswiped my car in Denver and I followed him home and beat him up In his front yard. I couldn't control my anger. I abused my second wife so much that she called the police five times on me during the course of our marriage. In March of nineteen ninety one, during my wedding to my fourth wife Kathy, I had a hard time keeping my balance while walking. A month later I was diagnosed with a chemotherapy treatment, in an attempt to cure the brain tumor.I died over a year after being diagnosed in my home in Portland, Oregon. I told Sports Illustrated before my death that I had started taking steroids in nineteen sixty nine and never stooped. I wanted to tell others to stop taking steroids. It wasn't worth it to me, steroids caused me to become detached from my friends and family, I couldn't keep a good relationship due to the mood swings caused by my steroid use. Ultimately my death was caused by steroids, they had made my appear strong on the outside while they wrecked my mind and body.

Chapter 12 Taxation and Income Distribution

Who actually pays a tax b. Legal Incidence – who is legally responsible for paying a tax c. Economic Incidence – who actually pays the tax d. Example – tax of $1 is placed on $10 item how is income distribution affected i. Price stays at $10 – income of seller reduced ii. Prices rises to $11 – income of buyers reduced iii. Price rises to $10. 30 – buyers pay $. 30 and sellers pay $. 70 e. To the extent taxes affect quantity sold and produced, tax affects income of suppliers of inputs for the product. i. Example: tax on gasoline reduces gasoline consumption it reduces income of gasoline tanker truck owners and drivers. ii. May reduce the income of furnace manufactures by reducing the price of heating fuel. III. Tax Incidence Perspectives a. People pay taxes not corporations b. How to group people for purposes of tax incidence i. Often think of producers and consumers 1. But consumers are also producers and producers are also consumers 2. 0 of households own stock directly, others own stock indirectly ii. By income Rich, Middle Class, Poor 1. How do you define these categories? c. Tax affect both suppliers of inputs and consumers of a product. i. In practice tend to ignore one side and do analysis on the other 1. Tax in commodity ignore impacts on inputs 2. Tax on inputs, ignore impact on consumers d. Incidence depends on how prices are determined i. How taxes change pr ices determine who pays the taxes ii. Amount of time is important – more time more adjustment to taxes e. Tax incidence depends on how tax revenues are spend . Progressiveness of tax system i. Policy says tax system should be progressive. ii. Higher income pay a higher percentage of taxes 1. Usually measured as increase in average tax rate taxes/income 2. Exemptions, deductions and marginal rate structure affect average tax rate iii. 2 measures 1. Percentage change in tax rate divided by percentage change in income 2. Percentage change in taxes divided by the percentage change in income 3. Measures can produce different results IV. Partial Equilibrium Models of Tax Incidence a. Analyzes impact of tax on the market in which tax was imposed b. Ignore impact of market change on other markets i. Appropriate if tax is small ii. Appropriate if market is small iii. Otherwise need general equilibrium analysis c. Tax incidence of a unit tax – tax per unit of the good i. Legal incidence on buyers – figure 12. 2 1. Tax reduces the demand curve for the product from the supplier’s point of view since at each price the consumer buys less of the product. [pic] ii. Legal incidence on seller – figure 12. 3 1. Tax reduces the supply curve for the product from the consumer’s point of view since at each price the suppliers supply less of the product pic] iii. Economic incidence is independent of legal incidence 1. Arrive at same Price, Quantity, and tax split regardless of whether tax is on producer or supplier. a. Sales tax example iv. Tax incidence depends on relative elasticities of demand and supply v. Example Qd = 1,000 – 5P and Qs = 4P – 80 Tax $45 per unit [pic] [pic] d. Tax incidence of an ad valorem tax – tax per unit of the good i. A percentage tax rather than a unit tax ii. Sales tax as compared to gasoline tax iii. More difficult to calculate but shifts demand as shown in figure 12. V. Payroll Tax Controversy a. Legal incidence 7. 5% paid by employer and 7. 5% paid by employee b. Statutory distinction between employer and employee is irrelevant c. Economic split depends on elasticity of supply of labor d. Logical that the labor supply is fairly inelastic i. Household provides certain amount of labor regardless of wage ii. May not be true in long run VI. Tax on Capital a. Increasingly capital perfectly mobile b. Moved to where return is highest after adjusting for risk c. Rate of return on capital same everywhere in world d. No single country can make suppliers of capital bear any portion of a tax on capital VII. Taxes in markets with monopoly power a. Impact of taxes same as in competitive markets b. Consumers and monopolist share tax depending on the elasticity of demand c. Figure 12. 10 VIII. Taxes in oligopoly markets a. Impact of taxes difficult to determine b. Price increase resulting from reduction in output resulting from the tax may make a company more profitable IX. Tax on profits a. Tax on normal profits reduce investment because profit is return on capital and risk b. Tax on economic profits born entirely by company with change in behavior c. Seemly ideal tax but not very operational X. Tax Incidence and Capitalization a. Tax increase on real estate is capitalized into PV of property b. Borne entirely owners at time tax is levied c. May be reimbursed if public expenditures increase property values XI. General Equilibrium Models a. Read first paragraph P 271 b. Generally not operational [pic] ———————– Po Pg Pn Q0 Q1 Supply ConsumerDemand Supplier Perceived Demand Tax paid by Consumers Tax paid by Suppliers Deadweight Loss from Tax Consumer Losses and Producers losses Po Pg Pn Q0 Q1 Supply Demand Consumer Perceived Supply Tax paid by Consumers Tax paid by Suppliers Deadweight Loss Consumer Losses and Producer losses Deadweight Loss Consumer Losses and Producer losses Tax paid by Suppliers Tax paid by Consumers Consumer Perceived Supply Demand Supply 300 400 95 140 120 Deadweight Loss from Tax Consumer Losses and Producers losses Tax paid by Suppliers Tax paid by Consumers Supplier Perceived Demand ConsumerDemand Supply 300 400 95 20 200 120 140 Chapter 12 Taxation and Income Distribution Who actually pays a tax b. Legal Incidence – who is legally responsible for paying a tax c. Economic Incidence – who actually pays the tax d. Example – tax of $1 is placed on $10 item how is income distribution affected i. Price stays at $10 – income of seller reduced ii. Prices rises to $11 – income of buyers reduced iii. Price rises to $10. 30 – buyers pay $. 30 and sellers pay $. 70 e. To the extent taxes affect quantity sold and produced, tax affects income of suppliers of inputs for the product. i. Example: tax on gasoline reduces gasoline consumption it reduces income of gasoline tanker truck owners and drivers. ii. May reduce the income of furnace manufactures by reducing the price of heating fuel. III. Tax Incidence Perspectives a. People pay taxes not corporations b. How to group people for purposes of tax incidence i. Often think of producers and consumers 1. But consumers are also producers and producers are also consumers 2. 0 of households own stock directly, others own stock indirectly ii. By income Rich, Middle Class, Poor 1. How do you define these categories? c. Tax affect both suppliers of inputs and consumers of a product. i. In practice tend to ignore one side and do analysis on the other 1. Tax in commodity ignore impacts on inputs 2. Tax on inputs, ignore impact on consumers d. Incidence depends on how prices are determined i. How taxes change pr ices determine who pays the taxes ii. Amount of time is important – more time more adjustment to taxes e. Tax incidence depends on how tax revenues are spend . Progressiveness of tax system i. Policy says tax system should be progressive. ii. Higher income pay a higher percentage of taxes 1. Usually measured as increase in average tax rate taxes/income 2. Exemptions, deductions and marginal rate structure affect average tax rate iii. 2 measures 1. Percentage change in tax rate divided by percentage change in income 2. Percentage change in taxes divided by the percentage change in income 3. Measures can produce different results IV. Partial Equilibrium Models of Tax Incidence a. Analyzes impact of tax on the market in which tax was imposed b. Ignore impact of market change on other markets i. Appropriate if tax is small ii. Appropriate if market is small iii. Otherwise need general equilibrium analysis c. Tax incidence of a unit tax – tax per unit of the good i. Legal incidence on buyers – figure 12. 2 1. Tax reduces the demand curve for the product from the supplier’s point of view since at each price the consumer buys less of the product. [pic] ii. Legal incidence on seller – figure 12. 3 1. Tax reduces the supply curve for the product from the consumer’s point of view since at each price the suppliers supply less of the product pic] iii. Economic incidence is independent of legal incidence 1. Arrive at same Price, Quantity, and tax split regardless of whether tax is on producer or supplier. a. Sales tax example iv. Tax incidence depends on relative elasticities of demand and supply v. Example Qd = 1,000 – 5P and Qs = 4P – 80 Tax $45 per unit [pic] [pic] d. Tax incidence of an ad valorem tax – tax per unit of the good i. A percentage tax rather than a unit tax ii. Sales tax as compared to gasoline tax iii. More difficult to calculate but shifts demand as shown in figure 12. V. Payroll Tax Controversy a. Legal incidence 7. 5% paid by employer and 7. 5% paid by employee b. Statutory distinction between employer and employee is irrelevant c. Economic split depends on elasticity of supply of labor d. Logical that the labor supply is fairly inelastic i. Household provides certain amount of labor regardless of wage ii. May not be true in long run VI. Tax on Capital a. Increasingly capital perfectly mobile b. Moved to where return is highest after adjusting for risk c. Rate of return on capital same everywhere in world d. No single country can make suppliers of capital bear any portion of a tax on capital VII. Taxes in markets with monopoly power a. Impact of taxes same as in competitive markets b. Consumers and monopolist share tax depending on the elasticity of demand c. Figure 12. 10 VIII. Taxes in oligopoly markets a. Impact of taxes difficult to determine b. Price increase resulting from reduction in output resulting from the tax may make a company more profitable IX. Tax on profits a. Tax on normal profits reduce investment because profit is return on capital and risk b. Tax on economic profits born entirely by company with change in behavior c. Seemly ideal tax but not very operational X. Tax Incidence and Capitalization a. Tax increase on real estate is capitalized into PV of property b. Borne entirely owners at time tax is levied c. May be reimbursed if public expenditures increase property values XI. General Equilibrium Models a. Read first paragraph P 271 b. Generally not operational [pic] ———————– Po Pg Pn Q0 Q1 Supply ConsumerDemand Supplier Perceived Demand Tax paid by Consumers Tax paid by Suppliers Deadweight Loss from Tax Consumer Losses and Producers losses Po Pg Pn Q0 Q1 Supply Demand Consumer Perceived Supply Tax paid by Consumers Tax paid by Suppliers Deadweight Loss Consumer Losses and Producer losses Deadweight Loss Consumer Losses and Producer losses Tax paid by Suppliers Tax paid by Consumers Consumer Perceived Supply Demand Supply 300 400 95 140 120 Deadweight Loss from Tax Consumer Losses and Producers losses Tax paid by Suppliers Tax paid by Consumers Supplier Perceived Demand ConsumerDemand Supply 300 400 95 20 200 120 140