Goods And Services Tax : Pros And Cons

Having a value-added tax has many different views, but many cons are shown through the system. With having a value-added tax means the tax on the amount of an item goes up based on its production or distribution. Value-added tax being implemented would clear out many peoples savings. It also would be a struggle on the lower classes, and has been called an “unfair regressive tax”.

Taxation surrounds us in the world. Individuals fear tax, and a majority of the items we use and need are taxed. Even on topics such as Celebrities and the Olympics, taxation manages to find its way to still come up.

Recently there has been a significant tax reform, which is tax cuts, claimed by American president Donald Trump, affects both individuals and families. The U.S. Senate has passed the tax reform bill 51 to 49, which is the first amendment to the tax law by the U.S. Congress in approximately 30 years. It is the first major victory Trump has been in power for nearly a year. The heart of the new tax reform aims to reduce the federal income tax rate for individuals and businesses. Firstly, this short paper illustrates the most critical aspects of the new tax reforms (lower rates for individuals, middle class tax cuts, and itemized deductions). Then, the paper explores the most significant changes or influences and the biggest

The tax tends to lower the quantity of goods sold due to the price increase. The buyer does not wish to spend

Public good is an item whose consumption is determined by society not by individual consumers. Examples include national defense, law enforcement, parks. These goods are financed by taxes because they are created for the welfare of public. Basically the goods which can be consumed without reducing its availability to other individual and the other one is not excluded are public goods. The vice versa of these goods are private goods. A private good is a product that must be purchased to be consumed and its consumption is done by one individual. For instance, candies: the person who would be purchasing them , would be having not the person did not purchased.

Due to the complexity of your financial status there are four options to be chosen from regarding filing status. You may elect to remain married filing separate with Michael. This option would not change the landscape of the tax plan from previous years, leaving you with a tax liability of $10,438. The next tax option implies that you divorce Michael and become a Head of Household tax payer. Filing as Head of Household holds distinct advantages over filing married filing separately. There are deductions available for those filing Head of Household that cannot be claimed under married filing separately. For example, a taxpayer filing under married filing separately cannot claim a tuition credit. Thus, a taxpayer filing separately will have

In recent times, the decline in the income tax revenue base have led to a shift in the importance of indirect consumption taxes, such as the GST. This will allow for more flexibility to finance the cost of the ageing population while at the same time funding compensation for households who are affected by the increases posed by the reformation of the tax system.

One of the most evident and thought provoking aspects that we see as consumers on a daily basis is the effect of sales tax. The effect of sales tax vary from the examination of how much this tax can increase our purchases. To why there are higher and lower tax percentages based on different purchases. Knowing that this tax is in place determines the actions of both sellers and consumers. With sales tax continuing to evolve and change certain bills such as the Remote Transaction Parity Act of 2015 have been put into place and action.

Various tax barriers such as check posts and toll plazas lead to a lot of wastage for perishable items being transported, a loss that translates into major costs through higher need of buffer stocks and warehousing costs as well. A single taxation system could eliminate this roadblock for them.

tax will only be useful in the extra money is spent in this way, as the government will benefit in the

Improvement policy- Goods and services tax should be decrease for increase the sale of that product. According to my point of view goods and services tax must be decrease 20-25%.

It will increase the speed of the supply or logisit efficency as the barrier due to the different tax collection point will go

Tax abatement is a concept that is often utilized to refer to the situation where the government grants some type of tax reductions, or completely exempts certain entities from paying taxes for a given period of time with the sole aim of stimulating industrial, real estate, or job market development. Freilich, Sitkowski, Mennillo, and Freilich (2012) pointed out that tax-abated redevelopment is important since it provides an effective platform for entities to flourish within a deteriorating area. Harris, McKenzie, and Rentfro (2014) also stated that once in a while, governments may grant tax exemptions or reductions to particular taxpayers so as to encourage expansion of current operations within the jurisdiction of the government. Tax abatement is not infinite. It exists only for a specified period of time and is usually kickstarted by a constitutional amendment of some sort.

According to ITEP research report(August 2011),although sales tax and excise tax are important for improving state tax revenue, increasing these taxes on goods and services can have a negative impact on low income families, creating tax fairness. I agree with the author because these taxes are added to the total price of goods and services that the consumer purchases in the market. Increasing the rate of these taxes will cause consumers to change their spending habit as their willingness to pay for the good is limited by the tax. According the concept of demand and supply, when taxes are impose on either the consumer or producer, the tax incidence is split between them. The consumer pays half of the tax through higher prices, whiles the producers pay the other half of the tax from the difference between it revenue and the

Goods and Service Tax (GST) : GST has been in News since early 2016. The GST Bill is already passed in few states including Assam as Assam became first state to pass the Goods and Service Tax (GST) Bill. The Council was headed by Finance Minister Arun Jaitley and comprising representatives of all states in the meeting that was held in J&K. GST came into act from 1st July 2017. The tax rates on Goods and Services has finally been sanctioned by the GST council. Goods and Service Tax (GST) is nothing but the one and only one indirect tax for the whole nation, which will make India one unified common market place for all the vendors and consumers. Goods and Service Tax GST) is now has become the only tax on the supply of goods and