Evaluate how public policy decisions affect the receipt of revenues

Evaluate? Or Describe? Or analyze.

I don't think I can evaluate general concepts.

Retirement, disability are all public policy decisions. Of course, they affect revenue.

Reduce taxes and the workers (people who actually produce goods and services) increase useful, productive economic activity ... and the economy grows larger. The people (in government who don't produce valuable or useful goods and services but who take from the producers) receive more money because they are taxing a larger economy.

Increase taxes, and the producers (who then refuse to "work for the government" which takes ever larger amounts of their labor but returns little or nothing) produce less, the economy shrinks, and the tax taken by the government goes down.

Lower taxes have increased economic activity and led to greater tax receipts in every country every time taxes have been reduced: The US (1920 - 22, 1946-48, 1982, 2002; The UK, the USSR under Khrushchev in the 50's, under Stalin in the late 30's, etc.

To evaluate how public policy decisions affect the receipt of revenues, you need to analyze the impact of these decisions on various sources of government revenue. Here are the steps to get started:

1. Identify the policy decision: Determine the specific public policy decision you want to evaluate. It could be related to taxes, subsidies, regulations, or any other factor that influences the government's revenue streams.

2. Identify revenue sources: Understand the different sources of revenues for the government. These typically include taxes (income tax, sales tax, corporate tax), fees and charges (licenses, permits), grants, fines, and other sources specific to your country or region.

3. Assess the direct impact: Evaluate how the policy decision directly affects each revenue source. For instance, if a new tax is imposed, consider how it impacts the tax base, tax rates, and compliance rates. If a subsidy is introduced, analyze how it affects government grants or other budget allocations.

4. Analyze the economic impact: Consider the broader economic implications of the policy decision. Analyze the potential effects on economic growth, consumption, investment, and employment. Changes in these factors can influence the overall revenue collection.

5. Evaluate behavioral responses: Examine how individuals, households, and businesses respond to the policy change. For example, if taxes increase, people might change their spending behavior, which can impact sales tax revenue. Businesses might adapt their operations or move to different jurisdictions to optimize their tax liabilities.

6. Consider administrative factors: Assess the administrative capacity and efficiency of revenue collection. Inefficient or opaque tax administration can lower revenue collection, regardless of the policy decision. Evaluate any changes in administrative processes or enforcement mechanisms that may impact revenue receipts.

7. Quantify the impact: Use available data, economic models, and projections to quantify the impact of the policy decision on revenue receipts. This could involve analyzing historical data, conducting statistical analyses, or using economic simulations.

8. Compare with expectations: Compare the actual revenue receipts after the policy decision with the initial expectations or projections. Assess any deviations and evaluate whether the policy decision achieved its revenue-related objectives.

Remember, evaluating the effects of public policy decisions on revenue receipts can be complex and require a comprehensive analysis. It often involves considering multiple factors and gathering adequate data.