Uk Tax Reform
Abstract
This paper examines the generally accepted desirable characteristic of a system of taxation. I describe in this paper that even where every one agrees that the tax system should be simple as dictated by the first maxim of Adam Smith, no country is yet to meet this standard. Questions on policy, complexity, equity, administrative efficiency, cost of compliance all increasing the cry for a tax change. Many Eastern Europeans have adopted the flax tax system and presently has an increase economic growth. However, are they fully operating the flax tax system?
INTRODUCTION
Taxation is a levy or a charge imposed by a government on its citizens to raise revenue that finances public spending. The government of every country of the world had always imposed taxes on individuals or entities to pay for public spending. A government can also issue a public or Treasury bond to the public to finance specific project. Taxation is the most effective and important source of revenue.
The objective of taxation has changed from financing public expenditures alone to redistribution of wealth, boosting economic stability and also to discourage the behaviour and consumption of certain product. Relief are given to influence or encourage certain behaviour which in the long run will reduce overall cost of not promoting or influencing such behaviour now. For Example, First Year’s Allowance given to Corporation for buying cars that does not emit co2 and high tax paid on dangerous items such as cigarettes and alcohol.
As the needs of the public increases and become more complex, the cost of financing it increases. The different types of taxes are collected as a whole to meet the needs of the taxpayers. Individuals or entity are not taxed according to the benefit they will receive or has received from the government. However, motor fuel and road taxes are used to finance the construction and maintenance of roads has a direct benefit attached to the tax payer.
TYPE OF
This paper examines the generally accepted desirable characteristic of a system of taxation. I describe in this paper that even where every one agrees that the tax system should be simple as dictated by the first maxim of Adam Smith, no country is yet to meet this standard. Questions on policy, complexity, equity, administrative efficiency, cost of compliance all increasing the cry for a tax change. Many Eastern Europeans have adopted the flax tax system and presently has an increase economic growth. However, are they fully operating the flax tax system?
INTRODUCTION
Taxation is a levy or a charge imposed by a government on its citizens to raise revenue that finances public spending. The government of every country of the world had always imposed taxes on individuals or entities to pay for public spending. A government can also issue a public or Treasury bond to the public to finance specific project. Taxation is the most effective and important source of revenue.
The objective of taxation has changed from financing public expenditures alone to redistribution of wealth, boosting economic stability and also to discourage the behaviour and consumption of certain product. Relief are given to influence or encourage certain behaviour which in the long run will reduce overall cost of not promoting or influencing such behaviour now. For Example, First Year’s Allowance given to Corporation for buying cars that does not emit co2 and high tax paid on dangerous items such as cigarettes and alcohol.
As the needs of the public increases and become more complex, the cost of financing it increases. The different types of taxes are collected as a whole to meet the needs of the taxpayers. Individuals or entity are not taxed according to the benefit they will receive or has received from the government. However, motor fuel and road taxes are used to finance the construction and maintenance of roads has a direct benefit attached to the tax payer.
TYPE OF
References: Bittker, Boris, The Brookings institution, 1980 (Treasury Press Release 13 May 2004) Publisher Klumer Academic BAKER and McKENZIE (1999), “Survey of the effective tax burden in the European Union”, Amsterdam, January.