Tax System and Its Impact on Malaysia's Economy

With income inequality also comes a lot of issues for New Yorkers such as homelessness and not being able to afford necessary things such clothing, food, and transportation. The inequality of income mostly affects the middle and lower class in New York. According to Census Bureau done in 2010, it was stated that in 2009, about 19 percent of the population in new york city lived in poverty. Along with this information, it was said that the median household income fell from $51,116 in 2008, to 50,033. Not only that but also the combined work of the city’s 58 richest residents at the time rose by $19 billion. Based on another census, the Gini coefficient, which is a statistical measure of the degree of variation or inequality represented in a set of values, used especially in analyzing income inequality, for household income in New York City went

Income inequality is assessed by using “Gini coefficient” (Gini, 1909) and it is one of the commonly used measurement tools across the globe. The Gini coefficient is normally explained by using Lorenz curve where the income of individuals are arranged from the lowest income level to the highest income level (Lorenz, 1905). A Gini coefficient with zero means perfect equality, whistle one or 100 percent means maximum inequality (Rogerson, 2013) . Based on income inequality measurement tool; Gini coefficient, Wilkins (2014a) suggests that there was a decline in Gini coefficient between 1994 -1995 and 1996-1997 by showing an inequality in Australian household income. On the other hand, between 2003-2004 and 2007-2008, the Gini coefficient increased

"Does Australia Have A Good Income Tax System?" is a research paper that was published in the International Business and Economic Research Journal during May 2013. The paper was written by Anthony Stokes and Sarah Wright who are both economics professors at the Australian Catholic University. This research paper begins by comparing the tax system in Australia to that of member countries of the Convention on the Organization for Economic Cooperation and Development (OECD). The OECD is an organization that works to promote policies that improve economic and social development. At the time that this paper was written, a total of 34 OECD member countries spanned across the globe, including: Australia, Canada, and the United States. Stokes and Wright

Domestic inequality is most commonly measured using the Gini coefficient that varies between 1 and 0. A coefficient of 1 implies inequality is

This imbalance has not been seen since before 1917 and during the Great Depression, when inequality peaked. Additionally, income inequality is on a continued trend towards a further disproportion. Evidenced by the Gini Index, a “standard economic measure of income inequality” (7) where a score of 0.0 on shows a perfect equality in income distribution and a score of 1 means one person takes all of the income, the United States has one of the highest of income disparities of the 35 members countries of the Organisation for Economic Co-operation and Development (OECD) (10), at 0.469 on the Gini index (8). The UN indicates that a coefficient of 0.4 and above is a predictor for social unrest and above 0.5 indicates a severe gap between the wealthiest class and the working

Gini coefficient, as a dependent variable, is used to measure income inequality for grouped household income. It is calculated across the grouped sixteen using census data for 1989, 1999,

The closer to 1 a country is the more unevenly the income is distributed in that country. According to the CIA’s public database, the Gini coefficient of the U.S. was .40 in 1997. This number was not too bad compared to Brazil’s .59 at the time (the world’s highest). By way of contrast, a decade later Brazil experienced high economic growth and managed to cut its Gini coefficient by nearly a tenth while the U.S. increased to .45 during the 2007 year. The trend continued to rise with the U.S. reaching new heights of .48 in 2014 according to the U.S. Census Bureau. However, the Gini is only a snapshot of a single aspect of an economy. like any measuring index the Gini coefficient has its flaws. Absolute and relative levels of inequality are tough to measure, which is why income inequality is a convoluted topic. For instance, a hypothetical country with three people of yearly incomes of $650, $1500 and $10000 would be counted as having the same level of inequality with a three person country with incomes of $65,000, $150,000 and $1,000,000. The oversimplification of measuring income inequality is one of the biggest drawbacks of the Gini coefficient. Numbers can create a hyperbolic perception. My dollar may stretch further in mainland China in terms of purchasing power but that alone is not indicative of a better economy. While I may be able to rent a decent hostel for a weekend stay in Beijing, catch a bus to the

Beginning in the 1970s, income growth for households in the middle and lower classes decreased, while incomes at the top continued to increase (Stone et al., 2015). Overall, since 1947, the Gini coefficient, which is what the U.S Census Bureau uses to measure income distribution inequality, rose from 5% to

What happens to the economy when the government raises or lowers taxes? Lots of people in America do not understand exactly what happens to the economy when the government raises or lowers taxes. In this paper I am going to address that question as well as a few other things such as: Describing the effect on net personal income when the government raises taxes and when the government lowers taxes. Describing how the Gross Domestic Product (GDP) is affected by higher taxes and lower taxes. I will also identify what other economic factors are affected when taxes are raised or

During the last several years America witnessed a scenario in which the volume of the rich is drastically increasing. This happened at the cost of a breakdown in the volume of middle-class and an increase in the volume of the poor. The most commonly used tool for measuring social inequality is the Gini coefficient. This is a scientific approach to finding the spread of wealth in a given geography. If the Gini coefficient is zero, it is a clear signal of perfect equality. If the Gini coefficient is one, it shows that the wealth in that area is not properly distributed. Studies show that America has much to improve in terms of Gini coefficient.

The distribution of income is the manner in which income is divided amongst the members of the economy. A more equitable distribution of income from work would lead to all individuals in society having a similar quality of life. This equitable distribution of income may be either positive or negative. Positive factors may include the poor being able to access better education and health care and avoiding the inequality of opportunity they may face. It also decreases and diminishes the poverty faced by individuals. The negative factors of a more equitable income include it having an effect on the economy by lowering the incentives for people to study hard and work hard to achieve a higher education and to get a higher knowledge based job and discourages innovation and people taking risks. Sweden has a fairly equitable distribution of income, its Gini Index is 23.0 a country with 0.0 would have perfectly equitable income. A Gini index is a representation of the income distribution between a nation's residents.

Over the past three decades America’s economy has seen continuous growth; but this is accompanied with no increase in purchasing power for poor and middle class citizens. On the other hand, incomes of the richest Americans have dramatically increased, which only furthers the gap between social classes. In 2008, the top one percent of Americans earned over 20% of the national income, which is significantly higher than only 50 years ago. Economists use a strategy called the “Gini Coefficient” to measure the relative equality between nations. Since 1980, the Gini Coefficient for the United States has risen from 0.388 to 0.45. This is a very high rating compared to other egalitarian countries, such as most of Europe and Japan, whose ratings are generally in the high 0.2s and low 0.3s.

Malaysia is a democratic country with excellent economic system. We are one the leading country in economic terms and being an example for the economy system we are using. In Malaysia, we are into mixed economy system. This economy system is the leading type of economic system that is used in most of the countries such as United States. Mixed economy system includes a mixture of capitalism and socialism. It combines private economic freedom, centralized economic planning and government regulation. Government plays major role in economic growth as well as distribution of wealth. For example, our government collects tax and provides subsidies at the same time for the public.

Malaysia’s GDP Annual Growth Rate since 2000 till present. Notice the sharp contraction after the 2008 Financial Crises.

In terms acceleration of economic growth is based on the measurement of GDP, MALAYSIA HAS recorded a growth of 5.1% last year. Although it is lower than 7.2% in 2010, but it was so roaring in the context of a difficult global economic environment and uncertainty. In contrast, global economic growth has dropped from 5.2% in 2010 to 3.8% in 2011 while the economy of the developed countries like USA, Germany, UK, France and Japan also recorded weak growth of respectively 1.5%, 2.7%, 1.1 %, 1.7% and -0.5% in the same year; far lower than Malaysia's achievements. Following a satisfactory GDP growth was assisted by the Federal government revenue increased by RM13.2 billion in 2011 through increased collection of IRB estimate of RM109.7 billion compared with RM96.5 billion the government has managed to reduce its fiscal deficit to 5.0% compared projection of 5.4%. This means that the GOVERNMENT has successfully steered the nation's economy as well as the control and management of public funds wisely in the past 3 years in a row when managed to bring down the fiscal deficit from 7.0% in 2009 to 5.6% (2010) and 5.0% in the past year in a expanding economy.