OECD Economic Surveys : India Case Study

Another idea would be to avoid increasing the tax rates as this will help “minimize economic distortions that shrink the level of production” (Baker III, 2009, p. 1). To promote economic growth, our team recommends that we take the approach of increasing the corporate tax base and decreasing the corporate tax rates. Other suggestion is to reduce the deductibility of state and local taxes. Other reforms that could be looked

The economy of India is the tenth-largest economy in the world by official GDP (Gross domestic product) of $2.047 trillion and the third-largest economy by PPP (Purchasing power parity) of $7.277 trillion retrieved on October 8, 2014 from the IMF (International monetary fund). India is one of the G-20 major economics, a member of BRICS and a developing economy that is among the top 20 global traders according to the WTO (World trade organization) with a GDP growth of 4.7% in 2013 and an estimated growth of 5.6% in 2014. India was the 19th-largest merchandise and the 6th largest services exporter in the world in 2013 with exports of software, petrochemicals, agricultureproducts, engineering goo, transportation

People believe that the tax system is a good way for a government to redistribute the income and make the society more fair and equal, and indeed, Canada's progressivity personal income tax system has decrease the income inequality in some extent. Some people argues that there should be more progressivity at the federal personal income tax system, because the richest Canadian still hold too much share of national income. In 2016, the Canadian federal government actually added a new tax bracket for the person whose income is above $200,000 at the rate of 33%. Government believes that the new added tax bracket will raise the revenue for 2016-2017 by $2.8 billion. However, they only take into account the net primary impact, they do not take the behavioural response into account. When they take into account the behavioural response, according PBO, the revenue that the federal government could actually get is only $1.8 billion.(p.6) The more progressivity on upper income earners will lead to the decrease of labour, reduce of reported income and further stunt economic growth. Canada will also further loss its competiveness of attract highly skilled workers. To reduce the income inequality ,the more progressivity personal income tax system could not achieve the goal perfectly, as it could not raised the anticipated revenue. Meanwhile, the more progressivity will put Canada at a even worse position since its negative impact on economy and Canada's

The Republican administration of Donald Trump presented an ambitious tax reform, making emphasis in a strong tax cut for individuals and companies, this is just a proposal for now, in what anticipates a long and never-ending debates in the Congress to get the approval. Examining how changes to individual and companies tax will affect long-term economy grows. The structure of such changes is critical to achieve what in the future could bring economic growth, the ultimate purpose of any government in the world. This work will try to analyze the pros and cons, consequences for our country and abroad, and finally have the criteria if this is viable for our economy, showing some statistics and graphics for a better

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).

From the beginning, I focused on increasing government spending (military and infrastructure) and investment tax credit by the maximum, ten percent, and decrease income tax and payroll tax rate by the maximum, negative ten percent. Reasons for maximum increase is due to government spending projects take a while to get underway and allowing firms to get maximum credit for investing. Reasons for maximum decrease is for all consumers to pay less tax to spend more and firms to have more money left over to investment verses paying payroll tax.

It has also argued that growth can also be enhanced, by improving the design of individual taxes.  In some cases, such as the reduction of corporate taxes and the top rate of personal income tax, it is unlikely that these growth-enhancing changes will help the recovery from the current crisis.  At the same time, there are tax changes that appear to be bad for growth, such as reductions in sales taxes (particularly if they take the form of exemptions and reductions) and property taxes that would do little to speed recovery.  The tax change that shows the most promise in terms of both increased growth and economic recovery is the reduction of income taxes of those on low incomes.  This would stimulate demand, increase work incentives and reduce income inequality.  The authors display that the dependence of both growth and tax policy on initial income help explain why it is difficult to isolate the effects of tax policy on growth.

In the article Tax reform =Growth, the author Rory Meakin (2012) suggests that Australia has a good tax system but it still has its problems. He compares the tax system between Britain and Australia as well, and discusses the importance for the government to change its approach of raising taxes to make it cheaper, fairer and more legitimate in Australia. The article outlines the complexities of the taxation system in the country, which resulted to the lost of its legitimacy since many people do not understand how much they should pay. It advises the need for the government to make the tax system to be as neutral as possible by eliminating complications that will add confusion to its approach. The journal name tax reform equals to growth and he totally agrees that raising the tax and keeping the tax neutral is the better way to face the tax problems nowadays.

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.

Lowering income tax would also create a flat tax system which takes the concepts of the GST/HST and doesn’t differentiate based on income level because everyone pays the same percent of income. It would also be considerably easier to file taxes due to the fact that everyone pays the same rate, furthermore the implementation of flat tax would mean that all would be contributing an equal proportion of their income to the maintenance of government services and encourage economic growth. Reducing income tax has always been a sensitive subject stating that it would only benefit high income households but more discretionary income which is derived from disposable income which equals gross income minus taxes would help taxpayers of all brackets save towards their RRSPS, educational saving plans, and other investments. Also discretionary spending is very important part of having a healthy economy because people will only spend money on things such as travel, movies, and consumer

After using the data from the WSJ Economic Survey August 2015 to create a graph for each variable,

An income tax is not only costly in the amount of time and money it takes to file the paperwork correctly but, it also stunts economic growth as “income taxes are levied on work, savings, and investments. In essence, the government grows by taking money from what makes the economy grow” (Bedard 2010). A consumption tax on spending for goods and services that does not unduly burden the poor nor penalize savings and investments would be a sensible upgrade for the tax policy currently in place. Initially, this essay will discuss issues within the current income and corporate tax codes. The essay will then shift to reforms of the

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

Since the liberalization, privatization and globalization (L.P.G) in the early 1990’s the Indian economy has had a deep impact on its financial services sector, it is during this L.P.G era the reform’s in financial sector were initiated by the government of India to meet the challenges of complex financial architecture. This reform ensured that the new Indian financial system will forge out into a transparent, strong and resilient system. At present the Indian economy grew by 7.3 percent, a full year growth for the fiscal year ending in march based on the statistical method based of gross value added (GVA) keeping base year as 2011-2012 as against 2005.

India is the seventh-largest country by area and the most populous democracy in the world. India’s first people were those of the Indus Valley Civilization, who prospered during the 2nd and 3rd millenia BC. Throughout the next few centuries, India was home to many groups: the Aryans, Mauryans, and finally the Mughal Dynasty. In the 16th century the British East India Trading Company started establishing ports in India and by the mid 18th century the British Crown controlled the country. The British maintained this role for close to 200 years. (CIA World Factbook). The Human Development Index is a way to measure a countries development using variables such as life expectency, average income, and years of schooling. India’s HDI is 0.624. India is ranked as the 131st country out of a total of 188 (Human Development Report). Although ending over 60 years ago, British colonization still impacts India in the way the country economically, politically, and culturally functions today.