The Issue Of Appropriateness Of The Vat Rate

Every item you purchase legally has a VAT which increases the overall cost of the item. This is normally a 20% increase which is quite costly- depending on the item. If you were to buy a computer for £500(no VAT) then the final price would be £600. This means many families are forced into poverty while they have to struggle on surviving on minimum wage.

Indirect Taxes relates to VAT and Excise duties. VAT is sales tax which is collected by the business (Tesco) and given to the government. Essentially if increased it would increase the price of Tesco’s products, this subsequently

However, these long and short term economic improvements are only what is predicted to happen and there negatives to the reduction in income tax. A factor that the government must take into account is the budget deficit, can the government afford to simply cut income tax that is a large source of revenue for the budget. A worsened budget deficit could have devastating impacts upon the economy, for example less people able to have the benefits they require, (this would also reduce demand in the economy as those on benefits generally spend the money they have as they do not have spare to save, this may damage the economy even further) or a reduction in money towards health care. Also, a reduction in income tax does not necessarily mean

Tariffs exist in many different forms, and have various uses dependent on the economic situation and outlook. They can be specific such as a set tax per item, or ad valoreum, with a percentage tax per unit. (McEachern, 2015, p. 282) This paper will discuss function of each and the positive and negative effects of the use of these various tools.

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”.

The government relies on collecting taxes in order to create revenue and function successfully. A decrease in taxes affects business and the government differently. A decrease in taxes is good for business and bad for the government. Many entitites rely on government funds in order to operate and function

If the taxes for business are lowered, the businesses will be able to increase employment, and that will lead to the unemployment rate further decreasing, which will improve economic growth. In addition to that, the businesses will spend more on supplies and as it spends more on supplies, other businesses will get higher demand, and that will lead to more money that can be spent on multiple things such as hiring people, and improving production, and management efficiency. Eventually, this will be a ripple effect, and the Canadian economy will

The UK coalition government started their fiscal consolidation (concentrates on reducing government deficits and debt accumulation, i.e. national debt) towards the end of 2010 when the Labour government’s fiscal stimulus package was abandoned. The first act by the newly appointed coalition government was to cut spending and to increase indirect taxes, which involved increasing the main rate of VAT from 17.5% to 20% from the beginning of 2011. However, increasing tax and reducing government spending have advantages and disadvantages.

The price of products will drop which can lead to the growth of the economy if the taxes of big corporations will decrease. According to President Trump in the third debate on President Debate “When the company lower the taxes from 35% to 15% they have more money to spend on research, development, and producing things which can lead to growth”(para.2). Therefore,companies do not need to move from and buy or sell their products from other countries that raises the cost of their products only to avoid paying high rates here in the United States. If they will not have to pay high rate of taxes more products will be made here and these may cause a decreasing in the price of the products. The economy will expand again. However, we live in a country where business is all about competition.A country where business is pure capitalism which means business are owned and or manage by private owners for profits. They are only after the profits, they do not think about their consumers because we need their products to survive so we still buy them. Even though Money is only matters when it comes to business but by

First, receipients of goods already pay sales taxes on those goods, thus by raising income tax for the argument of goods received, the government would unfairly double tax consumers. Moreover, their product is merely one

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

So many government leaders aim to lower taxes on companies, with the knowledge that would help to understand the idea of less taxation could make more business.

There are lot of concerns to this issue. Why is the government imposing this tax and proposing to the community? Why are people against this tax? People are against it

There are quite a few forms of tariffs that the government may apply based on the condition of the country’s economic welfare. The pros and cons of these forms of tariffs will be reviewed. Discussion on how these tariffs positively or negatively affects the economic stance of the country will be displayed. Tariffs such as the ad valorem, the taxing a percentage of the value of an item and the specific tariff or tax which is a set amount based on weight or sum of items. (McEachern, 2015)

Further taking the economic perspective into account, this would even help the nation as a whole by increasing its total production and achieving economic growth. This in turn could lead to greater equality amongst the citizens and the whole theory about levying taxes prospective in nature could be dropped without having any arguments.