Taxation, tax system, tax collection, USA United States of America, KLM, government budget
A tax is a mandatory financial charge or levy that is imposed on a taxpayer by a governing authority for the purpose of acquiring resources for funding of various public expenditures. This money raised through tax collection is used to run and manage the specific jurisdiction by the provision of public goods and services, and general sustenance activities. Aside from raising money for the above purposes, taxation is also a tool of regulation of the economy at micro and macro levels. Accordingly, taxes are essential as a tool for influencing patterns of consumption, production and distribution (Mirrlees Review, 2011)
[...] These provisions stimulated capital investment. After the initial sharp growth, the rate reduces later during the decade. The reduction will possibly be a result of the short term nature of some of the provisions of the act. Economic growth may appear intermittent, based on the complexity of factors that affect the same, but in aggregate will still significantly increase economic growth (Gale, W et al). If the proposal is fully implemented, there would be a reduction in federal revenue 1.46 trillion dollars over the next ten years on static conditions. [...]
[...] This favors the progressive system of taxation, in all the modern systems of taxation in the world today (Dotti, 2020). Best tax system for KLM In view and reference to the tax systems explained, the best tax system that would suit KLM would be a mix of the proportionate system and the progressive tax system. While the proportional tax system can be imposed on a few aspects such as the per capita taxes, occupational taxes and the gross receipt taxes, progressive tax system will cater for the majority of the individual taxes. [...]
[...] Ziliak, J 'Making work pay: changes in effective tax rates and guarantees in U.S. transfer programs, 1983-2002', Journal of Human Resources, vol pp. 619-42. European Commission 2015 "Political Economy of Tax Reforms" Discussion Paper 025 Richard M Bird 2013 "Taxation and Development: What Have We Learned From Fifty Years of Research?" IDS Working Paper 2013/427. Dotti, V Income inequality, size of government, and tax progressivity: A positive theory. European Economic Review p.103327. Calabrese, S., Epple, D. and Romano, R Majority choice of tax systems in single-and multi-jurisdictional economies. Journal of Public Economics pp.58-70. [...]
[...] This theory agrees to a larger extend with the tenets of the regressive tax system. Tax on the Basis of Expenditure: Other economists have opined that an objective way to place tax burdens on entities and individuals is on the basis of the amount of their expenditures within a given period of time. Accordingly, the higher the expenditure subject to an individual, the higher the tax and vice versa. This perspective has fundamental flaws; an individual who has a larger family compared to another may be forced to pay more taxes because of the inevitable size of expenditure relative to family size (Tanzi, 2000). [...]
[...] For example, it's not easy to determine and measure the cost of service that the national police, the armed forced, the judiciary etc. provide to the citizens. Dalton also rejected this theory on the basis of a lack of quid pro qua in a tax. - Ability to Pay Theory: This is the most popular and widely accepted theory whereby equity and justice in taxation is observed and realized. The principle of equity and justice acknowledges that the citizens are not equally resourced, with other having more income than other. [...]
APA Style reference
For your bibliographyOnline reading
with our online readerContent validated
by our reading committee
