2. Consider "Optimal Taxation Theory" a) What is its objective? b) Summarize the main principles in applying optimal tax theory for tax design. c) Highlight the limitations to adoption of optimal taxation in small developing countries such as the SIDS of the Caribbean.
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The study of creating and executing a tax that optimizes a social welfare metric under economic limitations is known as optimum tax theory or optimal taxation theory. The social welfare metric is usually a function of individual benefits, most often a utilitarian function, and the tax system is designed to optimize the total of individual utilities.
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- Consider “Optimal Taxation Theory” a) What is its objective? b) Summarize the main principles in applying optimal tax theory for tax design. c) Highlight the limitations to adoption of optimal taxation in small developing countries such as the SIDS of the Caribbean.Using all the concepts discussed In this class, develop/create a tax system that can be used by a developed country to maximize its tax revenues. Why you believe this tax system is more appropriate than others?Discuss problems about “Income tax rate is too high” in a country? What solutions can be done to solve it?
- Ans it with attractive headings and precisely Explain the difference between regressive taxation, indirect taxation, and progressive taxation systems? Which taxation system should be used in Pakistan? and Why?Do you think using we should using taxation as a redistribution tool in a country?The ideal taxation system is a good tax system, that is, it must complygovernment needs whose spending is increasing over time, which can encouragesociety to achieve the optimal allocation of resources, which can lead to their achievementequitable distribution of income and wealth and enables the implementation of economic stability.The ideal taxation is taxation that can direct the utilization of economic surplus forachieve optimal and dynamic use of economic resources.Please explain what kind of tax is the best and can be used assource of government revenue or financing in carrying out its tasks to achieveand improve people's welfare!
- Discuss problems regarding tax evasion in a country? What should be the solution that can be done by the government?1. If there is a conflict between a BIR Ruling and a Revenue Memorandum Ruling, which will prevail? 2.Which tax system impacts more on the rich people, and why does it impacts them more?The government has embarked on a fiscal route termed Ghana beyond Aid which route calls for tax reforms if indeed Ghana is able to grow and develop without depending extensively on aid Required Realizing that Ghana has already three phases of tax reforms, discuss the challenges associated with securing a successful tax reforms Suggest and discuss possible solutions on the way forward in resolving the challenges associated with tax reforms identified in (a) above.
- Discuss the possible factor that affect tax compliance in GhanaExplain two (2) major reasons why the incidence of taxation should be of paramount importance to theGovernment. Discuss four (4) major recommendations you would offer a neigbouring country that is in the process ofintroducing VAT in their country.Explain in your own words, how you believe a reduction in the General Consumption Tax (GCT) rate can positively and/or negatively impact the Jamaican economy.