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In later chapters of this book, transfer payments and the benefit of public services will be considered in more depth in relation to tax policy. Public goods and services provided by governments (such as highways, roads, and education) provide important benefits to the public. In some cases, public enterprises (such as postal services and power companies) operate alone or in competition with private companies or are owned by the private sector.
Governments also have a choice in supporting individuals and businesses with transfers (such as welfare payments or business subsidies) or with tax reductions (such as low-income tax relief or investment tax credits). Regulations can also be used as an alternative to government spending or tax policies to affect the behaviour of people and institutions. While we will not examine regulation in depth in this book, we will periodically discuss
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