Revenue Neutral and Enhancing Alternative Proposal for Unethical Taxation of Salaried Income

1206 WordsFeb 24, 20185 Pages
REVENUE NEUTRAL AND ENHANCING ALTERNATIVE PROPOSAL FOR UNETHICAL TAXATION OF SALARIED INCOME 1.1 INTRODUCTION In systems governing interactions among entities, the term ‘fair’ may be a reasonable description of what is ethical. For example, the prevailing view in the U.S. is that fair treatment of an indigent individual accused of a crime requires that he or she be provided legal representation in his or her interactions with the judicial system. Similarly, business-related laws and regulations have ethical dimensions. Thus, while the law may generally consider a 21-year-old eligible to enter into business transactions, society may deem it unethical (or unfair) for a mortgage broker to offer a loan to a native borrower who is clearly incapable of re-paying the loan. As a result, lending regulations (e.g., rules limiting loans to four times a borrower’s annual income) might be established to prevent a loan from occurring, even though it would otherwise be a legal transaction. In this case, the free market system would be constrained by regulations favouring the welfare of the borrower over that of the broker, primarily based on ethical considerations. Tax systems define the terms under which taxpayers interact with governments. As with other laws and regulations, such terms may be deemed either fair or unfair under a given standard. The predominant source of income for millions of U.S. taxpayers is wage, salary, or self-employment income. Thus, tax policies related

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