What Are The Advantages And Disadvantages Of A Gst

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.

The governments in any country use various taxation systems to raise funds to fund its national projects. The most common tax system is the income tax whereby the government raises funds from individual’s earnings. However, in the past few years, there has been heated debate about the adverse effects of progressive income tax on productivity and a proposal to replace it with national sales tax (Hodge, 2017). The national sales tax also known as the fair tax is intended to replace the current income tax and the idea is to enable the government to generate income from consumptions as opposed to earnings. This document examines the positives and negatives of the proposed national sales tax on the U.S. economy. The suggestion to impose a tax on consumption rather than consumption aims at encouraging savings and investments to improve productivity and promote economic growth. It is expected to promote fairness in the taxation because individuals will pay according to what they consume and not what they earn.

Because the principle of supply underlies the GST legislation. It is the fundamental precondition for liability to arise from the legislation. The definition of a supply and the mutually exclusive concepts of taxable supply, input taxed supply, and GST free supply, provide the critical element in the application of the legislation.

Food and other food related industries can help Australia become self sufficient making the need to import from other countries unnecessary. A new range of taxes will be introduced on large companies who get away with not paying tax in this country for too long high rise companies 30% of big names are not paying corporate tax and we will make sure this stops.

Revenue generated through tax receipts ideally should exceed annual costs on various government operations. Moreover, the economic considerations involving amendment of Internal Revenue Codes for various depreciation deductions for purchase of business property and research/development deductions credits1. The second consideration, referred to, as social consideration give tax benefits to the employers encouraging health insurance and deduction for charitable contributions by employees as well as private companies. The equity considerations enable individuals or corporations to avoid the effect of double taxation on their taxable income. This could be necessarily ensured by deducting state and local taxes from Gross Income. The credit or deduction for certain foreign taxes and deductions for dividend received by corporations to avoid triple taxation. The

The budget will also be adversely affected. The net loss in the budget would be about 2.5% of the country’s GDP representation $4.5 trillion. There are the figures that could have developed with the implementation of the tax policy in the country. The adverse effects of the tax policy has forced the federal government of the United States of America to shift to the alternative minimum taxation as it is stipulated in the Tax Relief Reconciliation Act of 2001 law. This was more lenient as it had much negative effects on the operation of the country. Even though the revenues and the budgets are affected, the effect of the alternative taxation was no such much adverse. The alternative taxation served the real need in the society.

(Tax/Financial Year = I July – 30 June) – Income tax payable on a year-by-year basis s3-5 ITAA97.

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.

Additionally, the retail and wholesale trades charge GST as a matter of law, retail prices must include any applicable GST, if someone (for instance, walks into a homewares store sees something they like and it’s an international brand, they can take the details of that or they can view it online, see it in a catalogue, wherever they derive their inspiration from, they can go online, view an overseas retailer, or overseas E- trader site, see if the item they’re interested in is available and order it. As long as the total purchase is under $1000 and the documentation is simply whatever the overseas supplier puts on the package concerned, which is already clearly open to abuse, it simply passes through customs without any leverage whatsoever, is simply sent through whatever logistic service it’s been sent by, onto the consumer in Australia whose purchased the goods or prepaid for them in their order, if the goods are imported by a major or commercial importer, in the first instance the applicable duties are paid before the goods are cleared, there are costs associated with the commercial clearance of goods, customs brokers have to be paid and so all manner of port charges are levied, and these charges are not inconsiderable, then gst is also payable by the importer, the goods then pass into the retail trade, where there

Mr Abbot stated, “The point I’m making is that we cannot remove the GST without the states and territories.” Though a number of state leaders indicate that they are not opposed or either supports the removal of GST. In August 2015 states and federal tressures failed to come to a unanimous agreement needed to remove the GST on sanitary products. From the government’s perspective they are concerned about the countries economy and the effects to which the removal of the GST will have on Australia economy, though the GST on feminie hygiene products creates minimal revenue in Australia, so there would be no real consequences. According to a Seven News report in May 2015, each year, the GST from sanitary products brings in less then 0.05% of the 60 billion dollars the total GST on all goods and services creates annually. An example to which large companies in Australia have even made a change towards this GST is in 2009, Coles Supermarket that they would lower the price of sanitary products by 10%, effectively paying the GST for customers. This decision was made following market research showing that 3 out of 4 women considered the GST unfair. If a profit-driven corporation such as Coles is able to forego the revenue gained by taxing sanitary products, then Australian governments should

the percentage of tax charged on each purchase will increase creating more profit for the

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

One of the most evident and thought provoking aspects that we see as consumers on a daily basis is the effect of sales tax. The effect of sales tax vary from the examination of how much this tax can increase our purchases. To why there are higher and lower tax percentages based on different purchases. Knowing that this tax is in place determines the actions of both sellers and consumers. With sales tax continuing to evolve and change certain bills such as the Remote Transaction Parity Act of 2015 have been put into place and action.

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.

Taxation systems are usually modeled in such a way that they take into consideration the social welfare of the citizens. The government and other policy makers have the responsibility of ensuring that the system takes into account the needs of the citizens. The bottom line is that taxation should foster equal distribution of resources. The rate of taxation is usually arrived at after several considerations have been made. The rates are not fixed as they depend on the various economic changes. The issue of how taxation should be distributed among the different economic classes is yet to be addressed.