Economic income is susceptible to changes that result from several factors some of which include: the level of inflation whereby high inflation decreases economic income by increasing its volatility. The existing tax rate in an economy also has an influence on the financial income. This is because low tax increases the disposable incomes. The primary factor leading to a change in the taxable incomes in an economy is the inflation adjustments. Notably, inflation has the propensity of increasing the costs of commodities and services. To ensure the society keeps pace with these changes, adjustments must be to particular deductions, ...
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