Tax System In Australia Essay

The Commonwealth of Australia is both a representative democracy and a constitutional monarchy with Queen Elizabeth II as Australia 's head of state. (How government works, 2016). Since the 1990s globalization has gained widespread currency in Australia on a social, economic, political and cultural level. (Holmes, 2012, p. 340) Laws and politics have an influence on Australia’s economic system, which is capitalism and socialism. (Political Economy, n.d.) Analysis of political and economic approaches by government can add insight into the flow on effects on a community and its individual.

Australia became a commonwealth of the British Empire in 1901. It was able to take advantage of its natural resources to rapidly develop its agricultural and manufacturing industries and to make a major contribution to the British effort in World Wars I and II. Now, Australia has a prosperous Western-style capitalist economy, with a per capita GDP at the level of the four dominant West European economies. Rich in natural resources, Australia is a major exporter of agricultural products, minerals, metals, and fossil fuels.

Parent Corporation owns 85% of the common stock and 100% of the preferred stock of Subsidiary Corporation. The common stock and preferred stock have adjusted bases of $500,000 and $200,000, respectively, to Parent. Subsidiary adopts a plan of liquidation on July 3 of the current year, when its assets have a $1 million FMV. Liabilities on that date amount to $850,000. On November 9, Subsidiary pays off its creditors and distributes $150,000 to Parent with respect to its preferred stock. No cash remain to be aid to Parent with respect to the remaining $50,000 of its liquidation preference for the preferred stock, or with respect to any common stock. In each of Subsidiary’s tax years, less than %10 of its gross

Commonwealth Government, Budget Paper No 3: Australia’s Federal Relations, 2009-10, 12 May 2009, p 7.

In Canada, there are three main government levels of taxation which are, Federal, through the Canadian Revenue Agency; Provincial / Territorial, through respective provincial/territorial finance or revenue departments; and Municipal, through local government. There are different types of taxes applied by these levels of government on consumers, wage earners, and businesses. The basic types of taxes include Income tax, derived from an individual's employment or a corporation's business revenues; Consumer taxes, imposed on the production, sale, or consumption of goods and services; Property taxes, derived from the sale and transfer of property, and Import / Export, based on the movement of goods across borders. The amount of tax each Canadian

It is the general agreement of tax payers everywhere that the current tax system is way too complicated. You either need to have a certified public accountant help you do them or a specialized tax program to walk you through it. Not only that, but the costs associated with having someone prepare your taxes or buying the specialized computer program needed to navigate the myriad of entangled tax codes and laws can become quite expensive. But it is not only expensive for us, the individual tax payer, but it is also expensive for businesses and it is extremely expensive for the Federal government. Not

In this view governments are small, protectors of individual choice and focussed on the wealth creation that will trickle down to the more vulnerable. This Strategy was commissioned by the State Government but it only has some of the policy levers to tackle cost of living. Income support is a Australian Government matter as are most of the macroeconomic levers influencing the cost of living. Also taxation revenues are dominated by the Australian Government, and state taxation accounts for only a small proportion of total government revenues. Nevertheless there are goods and services over which the State Government has some control of pricing policy. Within these constraints, the Strategy focuses on feasible options for the State Government to pursue. The aim is to identify a framework and set of actions that can be delivered in the context of an already tight State Budget. This is especially important given that the State's revenue base is already largely regressive, that is the poor pay relatively more. In times of fiscal constraint where State Government departments and Government Business Enterprises (GBEs) are to find savings, they often turn to strategies, which are also regressive. In recent months we have witnessed an array of responses by departments and GBEs designed in part to improve their bottom lines. These responses include increases to user charges such as public housing rents and adult education fees,

But even if we understand the changes, how can we compare the before and the after? What are the best parameters in doing so? What phenomenon is followed globally? This just summarizes one aspect of the essay which is followed by policy recommendations by the author in the later half. Though with the limited knowledge of the subject and experience the author has suggested a policy recommendation which aims at resolving existing or possible budding economic issues for Australia.

Democrats and Republicans in the United States have contrastive stances on the implication and enforcement of taxes. Typically, members of the Democratic Party support a progressive tax, which taxes higher earners at a higher rate. Republicans, however, tend to agree with a flat tax. This policy taxes everyone at the same rate, regardless of income. Although these two ideologies are the most common, there is still a place for a third or fourth opinion from other political parties. The Democratic and Republican views on taxes don’t include every possibility for the United States.

Before WW2, it was the duty of both federal and state governments to collect income tax. However, in times of struggle, in an attempt to increase the efficiency of the government changes were made to this system of tax collection. The intent of the law was 'to get rid of state income tax and of state income tax departments (chief justice latham). The Uniform tax act was comprised of 4 sections, which aimed to firstly, eliminate the need for state income tax by setting a high overall rate. Although the state was still technically allowed to implement its own seperate income tax, it was not a good idea as it meant very high income tax rates and loss of the grants provided by the federal parliament. Second, it attempted to provide the state with an incentive, in order to not make any changes to the new income tax rate. This was done by giving the states money in the form of grants almost equal to the amount of money which would have been lost otherwise. Thirdly, a law was implemented to ensure that if any states were to refuse the new income tax laws put in place they would be over ruled by the commonwealth. The fourth and final law was put in place to guarantee the governments collection of commonwealth income tax. The attempted implementation of the Uniform Tax Case was contested by four states (WA, VIC, SA and QLD). However, section 51 of the constitution gives federal parliament

This unknown factor could be the cause of the rise in inequality that is observed at the end of the curb in the previous graph. It could also have affected the rest of the world more than it affected Australia, although this explanation is less likely. Hence, it is likely that on the short term the fiscal stimulus has decreased net income inequalities, although not significantly. However, we can’t conclude on any long term effect though the effect is unlikely negative (increasing inequalities).

One benefit of government intervention in Australia is the more efficient allocation of resources in the market. Australia’s current policy for this reallocation of resources is to take money from select industries using taxes and

British Parliament declared that the crown and the British parliament had the right to make laws that affected the colonies so as to maintain order. The mother country also had the right to maintain a military presence over the colonies if it was so required. Concerning taxation, Jenyns states that the colonists’ view that taxation must be preceded by the power to elect representatives is unfounded, citing the example of towns in Great Britain who did not have explicit parliamentary representation but are still taxed (Para. 2). Also, the document refutes the notion that taxation can only Thus, with the consent of the people. Therefore, Parliament had the power to impose taxes on the colonies and additionally held the right to use these taxes.

In February 2011, the Australian federal government declared a scheme to implement a Carbon Tax from July 1, 2012. Implementing this scheme has generated a controversial debate between Australians. The term “Carbon tax” refers to an environmental tax forcing polluters to pay per ton of carbon which they release into the atmosphere. This essay will provide the economical, social and political implication of carbon taxes, also with its introduction who will benefit and who would suffer.

The United States is in a recession; it has been facing some of the worse economic times since the Great Depression in the 1930’s. One option to fix the economy is to change the corporate tax rate. To lower it or to raise it, that is the question economists have been speculating. America's high corporate tax rate and worldwide system of taxation discourages U.S. companies from sending their foreign-source revenue home, which makes U.S. companies defenseless to foreign acquisition from the international opponents (Camp). Corporations and United States citizens have been fighting for a tax reform, which would hopefully help the American economy; either by lowering the corporate tax, or by raising the tax.