Business

When comparing the benefits and issues between the flat tax and the progressive tax, it is important to understand the way these two systems operate in today’s economy. The flat tax can be defined as a tax that requires every individual to pay the same rate of deduction regardless of their income. On the other hand, a progressive tax can be defined as a tax where the tax rate is increased based on the income a person earn. This system is operated through the use of tax brackets, where the levels of income are divided into different ranges with each range having a tax rate more significant than the range below it. Furthermore, when evaluating the efficiency of both of these tax systems, one may discover that the progressive tax system provides several different factors that contribute to the efficiency of the economy in United States.

Because the principle of supply underlies the GST legislation. It is the fundamental precondition for liability to arise from the legislation. The definition of a supply and the mutually exclusive concepts of taxable supply, input taxed supply, and GST free supply, provide the critical element in the application of the legislation.

Revenue generated through tax receipts ideally should exceed annual costs on various government operations. Moreover, the economic considerations involving amendment of Internal Revenue Codes for various depreciation deductions for purchase of business property and research/development deductions credits1. The second consideration, referred to, as social consideration give tax benefits to the employers encouraging health insurance and deduction for charitable contributions by employees as well as private companies. The equity considerations enable individuals or corporations to avoid the effect of double taxation on their taxable income. This could be necessarily ensured by deducting state and local taxes from Gross Income. The credit or deduction for certain foreign taxes and deductions for dividend received by corporations to avoid triple taxation. The

whether the tax strategy is sustainable under the tax law and therefore over whether the additional

Foremost, most nation’s taxing systems characteristically have five main features that either make them greatly competitive or not. Competitiveness includes desirability for both the society and business activity. A nations corporate rate, its consumption tax, property tax, the individual tax, and its international (global or territorial) are what make up the core features of competiveness. But is the competiveness of a nation’s taxing system related for both industrialized and developing nations? The answer is yes, but not completely.

Taxes are a necessary component for operating a government, however, they are also the source of great debate within our society. Especially when considering what types of taxes to use, and how much to tax the population without negatively impacting the economy. Income taxes are currently one of the biggest sources of income for the government, but are also one of the biggest concerns given the level of complication involved with the current tax system. Although many argue that the current progressive tax system contributes to our country’s economic growth, research indicates there may be benefits for simplifying the income tax system without stalling growth. One theory indicates implementing a flat tax system would not only provide consistency for businesses and consumers, it would positively impact economic growth. If given the appropriate considerations, including an equitable rate, a flat tax would increase consumer confidence and lead to an increase in consumption, and ultimately growing real gross domestic product (GDP).

Also, the tax that is generated from the Kenyan retail industry has turned out to be efficient that it is being channelled by the government to improve the infrastructure in the country.

Should the flat tax rate system be implemented? No, the flat tax rate system should not be implemented. In this paper, the pro arguments will be presented, which will affirm the thesis. Then the con arguments will be presented. A rebuttal will then follow, and finally, the author’s conclusion will be offered.

This has helped wipe out the unemployment challenge in the economy, the increased investment activities are boosting the economic growth and development which are critical factors for consideration in encouraging the negatively geared tax regime.

the percentage of tax charged on each purchase will increase creating more profit for the

The money brought in can boost the local economy as the total amount of tax paid by the citizens is higher, to create more money it can be invested into services and stores; so that more money is spent every year, which starts a cycle.

Any individual can get a business with a fixed taxation per month if they do not reach certain amount of money every month, Allowing small business and any individual to be able to hold a easy access to the free market, This is a small changes in the business taxes help the easy access to the free market, This is

Some of the advantages are, funding government’s expenditure and nation’s development, distribution of wealth among citizens, control consumption, reducing income tax with capital losses and saving tax with deductions. For the first advantage which is funding

It has be argued (Cohen 2012)that the main advantages is related to transactions costs, international seigniorage macroeconomic flexibility, political leverage and reputation.

Discuss the features of a good tax system and review the Malaysian income tax system in relation to those relevant features. Explain how you would bring about a better tax system, particular with reference to personal taxation, if you were given such an opportunity.