Tag: fiscal policy”

Fiscal policy is an important tool for governments to influence economic activity. It involves managing government spending, revenue collection, and borrowing in an effort to shape economic output, employment, and price levels. Fiscal policy can be used to increase aggregate demand, boost employment, and adjust the distribution of income and wealth in society. Policymakers often rely on fiscal policy to stimulate an economy during a recession and as part of a broader economic stabilization and growth strategy. Fiscal policy has been found to be an effective tool for boosting economic growth, reducing inequality, and increasing quality of life. If correctly managed, fiscal policy has the potential to reduce economic instability, enhance innovation, and drive sustainable growth.

Modified Adjusted Gross Income (MAGI) is a measure of total income used to determine eligibility for certain tax credits and deductions. It is calculated by adding all above-the-line deductions — such as student loan interest, contributions to certain retirement accounts, alimony, and half of self-employment taxes — to an individual’s gross income. MAGI can also play a role in determining the Foreign Income Exclusion, which allows certain taxpayers to exclude certain foreign-earned income from taxation. This can be an important tool for those attempting to manage their foreign exchange exposure and gain tax savings.

Modified Adjusted Gross Income: All You Need to Know About Forex Trading