1) Tax is the amount of money demanded by government to financially support the economy. The main

Last but not least, a decrease in government spending could mean worse income distribution compared with increasing progressive tax. This is because transfer payment forms almost a third of the governments budgets and so by cutting expenditure it is very likely that it will also be cut making the poor poorer and widening the gap. On the other hand, taxes could be increased progressively by for example increasing marginal income taxes so that the people with high income pay more than the poor narrowing the gap between.

Taxes is when the state takes a percentage of the money you make to help the community or the state. Also one reason we get taxed is to pay off the government workers. Another reason we get taxed is to pay for the public buildings and public roads we use like libraries, schools, and highways. Finally another reason we get taxed is to help the poor or less unfortunate also to help an organization.

This policy involves increasing government spending and cutting taxes, in order to spur economic output. But if the government decides they need to do the opposite the government may adopt concretionary fiscal policy. This involves a reduction in government spending and an increase in taxes when faced with an overheating economy. But these actions, may have other effects in the economy. For instance, and expansionary fiscal policy may lead to the crowding out of investment.

2. What are the benefits of taxes for societies and individuals? The taxes can be used for anything that needs work on or whatever they can use or need it for. So it helps a lot with things like constructions, transportation, and anything in the city or state.

Many services offered to the public are funded by theses taxes, which could not be administered successfully under some other arrangement. Taxes are defined as an obligatory subsidy to state income. These subsidies are imposed by the local, state, and federal governments on workers wages and business’s financial gains or added to the cost of some

Taxes are the dollars that we pay to government to supply the services that are not or can not be provided through the free enterprise system. Taxes have been around since the beginning of organized societies. They come in various forms. Most common are income taxes both federal and local government. These taxes are assessed on the amount of income a person earns. Other taxes come in the form of user taxes; these taxes are imposed on the people that are using the goods being taxed, such as gas tax, alcohol tax, sales tax, and luxury taxes. Property taxes make up the major revenues for local and city governments. Furthering the burden of taxation are taxes that are attached to such bills as utility

Fiscal policy clarifies how the government could try to use fiscal policy to affect the economy, and reflects an economy that’s experiencing a recession. The government might lower tax rates to keep economic growth. Also if people are paying less in taxes, they might spend, or invest more money. After we increase consumer spending or investment, then it will be possible to improve economic growth. Congress and the Obama administration passed the American recovery and reinvestment act of 2009 (ARRA). This was a $787 billion package plus $286 billion of tax cuts and $ 501 billion of spending increases that relative to what would have helped without (ARRA) is estimated to have raised real GDP between 1.5% and 4.2% in 2010, but increased real GDP by smaller amounts in the years that followed. The current macroeconomic concerns includes whether the economy is in a sustained recovery,

There are two main types of taxes, indirect tax, and direct tax. Direct tax regards to tax that is levied directly on those who eventually pay them and cannot be moved on to others. While the Indirect Tax is a tax that can be exchanged in all or part to someone other who directly liable for payment. So, buying something from stores or and paying VAT is already recognized as the indirect tax payment. Overall, taxes are significant in our economy and society; I realized that each person of us must have contributed in developing our economy and that is through our taxes. But, right now I feel that money that we pay (tax) were not used correctly. Probably the government should use the money for the development and improvement of our very own society. After all, this Taxation is a material that helps a person understand how to spend money the on the right way and how to spend money on various taxes such as buying and selling products. It helps us to classify the different type of tax, how to calculate average and marginal tax rate. Also, it help to explain different tax system and how to calculate the VAT. We learn how to classify qualifying

The effects this type of taxation can impose on individuals and society is enormous. The most effective way of taxing civilians is through Progressive tax. There are many benefits in using this taxation system. Some of the most effective ways is by gaining more government revenue in goods and services, enhancing opportunities by reducing income inequality, and fairness in the tax

When the government gets involved and taxes goods and services, it raises revenue for the government, decreases the quantity of goods produced and consumed and therefore, both consumers and the producer of the good will pay, splitting the costs of the tax and leveling up with society’s.

Taxation systems are usually modeled in such a way that they take into consideration the social welfare of the citizens. The government and other policy makers have the responsibility of ensuring that the system takes into account the needs of the citizens. The bottom line is that taxation should foster equal distribution of resources. The rate of taxation is usually arrived at after several considerations have been made. The rates are not fixed as they depend on the various economic changes. The issue of how taxation should be distributed among the different economic classes is yet to be addressed.

Taxation, a definition of which according to business dictionary is a means by which governments finance their expenditure by imposing charges on citizens and corporate entities. Governments use taxation to encourage or discourage certain economic decisions. For example, reduction in taxable personal (or household) income by the amount paid as interest on home mortgage loans results in greater construction activity, and generates more jobs.

In the UK taxes are collected for a variety of reasons. A wide variety of methods are used to raise the different taxes. The UK government uses taxes to manage

Besides being the main source of direct tax revenue for the Government, income tax is an effective instrument to realise various socio-economic objectives of national policies. This chapter traces the evolution, explains the legal framework and describes the present system of income tax in india.

Taxation is identified as a very important tool for national economic development and growth in most societies. Taxes provide sustainable revenue for government to carry out its activities. The government’s activities help in creating and wealth and employment opportunities in the society, creating an avenue for citizens to earn income on which taxes are levied. Through this continuous process the circle of growth and development in the country is sustained.