income tax rate and a high corporate tax rate. The top income tax rate is 30 percent, and the top corporate tax rate is 35 percent. Foreign aid to the Haitian government has led the government to become for expenditure focused since there is a constant influx of money. However, foreign aid also increases foreign debt. In 2005, Haiti received $515 million dollars in foreign aid and last year accumulated a $1.4 billion external debt. Curtailing the deficits will be difficult with the large amount of foreign aid constantly flowing into the country. The misallocation of public revenues for private use and the low government allocations for economic and social development have contributed directly to Haiti's extreme poverty.Military expenditures do not play a large role in the percentage of expenditures in Haiti. Haiti’s defense budget totaled an estimates US$26 million. Currently Haiti has a 5300-strong national police force, funded and trained by the US, formed in the place of its military which was disbanded in 1994 when democracy returned to the country. The amount of money which is spent equals 0.2% of GDP which is small enough that total military spending does not necessary needs to be reduced. Economically, Haiti has experienced difficulty in the last four decades. Total Factor Productivity is an assessment of growth which measures the total output not caused by inputs or productivity and accounts for a majority of growth which occurs in a country. TFC is defined by the Cobb-Douglas production function Y= A x K^α x L^1- α. Total output equals a function of total factor productivity times capital input (K) and labor input (L).
income tax rate and a high corporate tax rate. The top income tax rate is 30 percent, and the top corporate tax rate is 35 percent. Foreign aid to the Haitian government has led the government to become for expenditure focused since there is a constant influx of money. However, foreign aid also increases foreign debt. In 2005, Haiti received $515 million dollars in foreign aid and last year accumulated a $1.4 billion external debt. Curtailing the deficits will be difficult with the large amount of foreign aid constantly flowing into the country. The misallocation of public revenues for private use and the low government allocations for economic and social development have contributed directly to Haiti's extreme poverty.Military expenditures do not play a large role in the percentage of expenditures in Haiti. Haiti’s defense budget totaled an estimates US$26 million. Currently Haiti has a 5300-strong national police force, funded and trained by the US, formed in the place of its military which was disbanded in 1994 when democracy returned to the country. The amount of money which is spent equals 0.2% of GDP which is small enough that total military spending does not necessary needs to be reduced. Economically, Haiti has experienced difficulty in the last four decades. Total Factor Productivity is an assessment of growth which measures the total output not caused by inputs or productivity and accounts for a majority of growth which occurs in a country. TFC is defined by the Cobb-Douglas production function Y= A x K^α x L^1- α. Total output equals a function of total factor productivity times capital input (K) and labor input (L).