Noted that taxation can be effective for enhancing or improving economic growth performance, it is a critical issue that needs to be considered nationally and internationally. The economic growth of our country is determined by the effect that taxation has upon economic decisions, in other words it is the mother head. After a research done I understood that the higher the tax revenues are paid by both individual and corporates reduces investments’ rates and increases jobs. More money is invested into education and health care. This issue discussed is very important to our national grid.
In my previous paper I elaborated the importance of taxation in infrastructure, public education and health care commonly for economic growth, however there …show more content…
Insufficient revenues result to large budget deficit. Tax prevents deficits which will lead to good control over both expenditure and revenue sides of government. 2. Economic efficiency
Taxation plays a vital role of bringing efficient economic resources to the economic grid; taxation can also impose real economic costs. It will also help minimize “deadweight losses”. 3. Fairness concerns
Taxation can secure equity; the system can help view a mechanism to take money away from the private sector in as efficient, equitable and administratively inexpensive way as possible. The other core elements of taxation in economic growth are which I viewed in my first paper: 1. Optimal allocation of available resources:
Taxes are the most important source of communal revenue. The obligation of tax has led to alteration of resources from the taxed to the non-taxed sector. The revenue services is shared or allocated on different production sectors in the country with the aim of increasing the overall economic growth of the country. To explain more, tax revenues can be used to boost development activities in immature areas of the country where ordinary or regular investors are not willing to …show more content…
- Strict rules should be applied on tax avoidance e.g. income splitting, base erosion, profit shifting including the tax bias in favour of debt financing.
- An excellent tax policy requires unnecessary costs of taxation. I recommend that tax bases must be as broad a possible ever.
- Tax rates should be set as low as possible so that individuals and cooperates can pay and not avoided given that revenue services needs to finance government operations.
- Attention should be given to taxes on production because it affects the location of business and the ways in which production take place.
- Corporations’ tax should be taxed by countries to prevent tax avoidance by individuals who would avoid shareholder level taxes by retaining earnings within the corporation and collect taxes from foreign owned firms.
SUMMARY AND CONCLUSION After discussing that taxation in mainly aimed at financing public expenditure. Taxation is also used to promote other objectives in our economic growth such as equity and to address social, public and economic
In my previous paper I elaborated the importance of taxation in infrastructure, public education and health care commonly for economic growth, however there …show more content…
Insufficient revenues result to large budget deficit. Tax prevents deficits which will lead to good control over both expenditure and revenue sides of government. 2. Economic efficiency
Taxation plays a vital role of bringing efficient economic resources to the economic grid; taxation can also impose real economic costs. It will also help minimize “deadweight losses”. 3. Fairness concerns
Taxation can secure equity; the system can help view a mechanism to take money away from the private sector in as efficient, equitable and administratively inexpensive way as possible. The other core elements of taxation in economic growth are which I viewed in my first paper: 1. Optimal allocation of available resources:
Taxes are the most important source of communal revenue. The obligation of tax has led to alteration of resources from the taxed to the non-taxed sector. The revenue services is shared or allocated on different production sectors in the country with the aim of increasing the overall economic growth of the country. To explain more, tax revenues can be used to boost development activities in immature areas of the country where ordinary or regular investors are not willing to …show more content…
- Strict rules should be applied on tax avoidance e.g. income splitting, base erosion, profit shifting including the tax bias in favour of debt financing.
- An excellent tax policy requires unnecessary costs of taxation. I recommend that tax bases must be as broad a possible ever.
- Tax rates should be set as low as possible so that individuals and cooperates can pay and not avoided given that revenue services needs to finance government operations.
- Attention should be given to taxes on production because it affects the location of business and the ways in which production take place.
- Corporations’ tax should be taxed by countries to prevent tax avoidance by individuals who would avoid shareholder level taxes by retaining earnings within the corporation and collect taxes from foreign owned firms.
SUMMARY AND CONCLUSION After discussing that taxation in mainly aimed at financing public expenditure. Taxation is also used to promote other objectives in our economic growth such as equity and to address social, public and economic