StudentShare solutions
Triangle menu

Do we have a fair taxation system - Essay Example

Nobody downloaded yet

Extract of sample
Do we have a fair taxation system

Nevertheless, the main system used in most nations is the progressive tax which emphasizes on paying as one earns (Christia, 2006). Each system of taxation is fair and unfair in its own way. Progressive, regressive, and lump-sum taxation systems are unfair while proportional taxation system is very fair when applied in obtaining revenue.
Progressive tax system is where the effective tax rate increases as the amount affected by the rate increases. In most cases progressive tax system is known as the PAYE (Pay as you earn). This means that the more a person earns the more tax he or she pays (Hatzipanayotou, 2004). With progressive tax system those who work hard to earn more are likely to be charged more in terms of tax and this is unfair. Progressive tax rate encourages laziness and discourages hard work. On a different perspective regressive tax system is the opposite of progressive. In this regards with decreases effective rate the amount affected increases on the other hand (Christia, 2006). This is also an unfair system of taxation as those who have will pay less as compared to the poor. In addition, this means that the more a person earns the less he or she pays in form of tax and the less a person earns the more he or she pays in form of tax (Freedman & Chamberlain, 2007). Lump-sum tax system on the other hand does not give priority on the efforts placed by individuals in developing their nations. Therefore, these three systems of taxation are unfair.
Proportional taxation system emphasizes on the effort placed by individual citizens in trying to build their countries. In this taxation system, the effective tax rate is fixed irrespective of the amount being taxed (Slemrod, 2000). Therefore, the more a person earns the more he or she takes home with the tax rate being the same. Schmidt (2000) points out that when one is lazy hence ...Show more

Summary

Taxes collected from citizens of a nation form the greater part of revenue for carrying out development projects as well as running different departments and governmental organizations…
Author : jaymoen
Do we have a fair taxation system essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Do we have a fair taxation system"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

The U.K taxation system
This research aims to evaluate and present the comparison of the progressivity of incoming tax and corporation tax in the United Kingdom. The discussion will also attempt to address the primary question framed as follows: For income and corporation tax, identify who is responsible for notification of income and payment of tax and when? Has United Kingdom felt the need to respond to competitive pressures and how?
11 pages (2750 words) Essay
Taxation
The government gets a larger amount of tax revenues from levies on citizen’s income; investments incomes included. “The federal income tax system is prepared in a way that it automatically taxes different levels of income at specific rates, which is usually at a gradual increasing scale” (Mumford, 2010 p.
6 pages (1500 words) Essay
Australian Taxation system
Australian Taxation system. Research done in several Australian newspapers has testified that taxation is the backbone of the Australian economy. The country’s system of government is divided into the federal government which controls all taxations that take place in the country.
6 pages (1500 words) Essay
Taxation System of UK
Secondly the tax payer must be sure of what he is going to pay, for what reason, the amount and so on. Thirdly the payment of tax must be convenient to the tax payer. For example, quarterly payment of taxes must be arranged in a manner that the tax payer knows when it is due.
10 pages (2500 words) Essay
Corporate Taxation Essay
In any developed economy, the interaction of the Government becomes evident with the corporate world after a certain extent of time and hence the decision of the Government to levy taxes on the Industrial houses for the fiscal budgeting of the nation is called Corporate Taxation.
9 pages (2250 words) Essay
Public Finance - Tax System
Taxation acts as an effort to stabilize economy by the stabilization of price, wage, employment and balance of payments. Government efforts are made to secure an equitable distribution of income and wealth of the economy and last but not the least
8 pages (2000 words) Essay
Adam Smith & UK Income Taxation
639). The first edition of Smith’s book, “The Wealth of Nations,” was written in 1776. This discussion utilized the third edition dated 1784. Adam Smith lived from 1723 to 1790 (Ekelund and Hebert 1997, p. 97; Landreth
18 pages (4500 words) Essay
Taxation
usehold savings findings, the aim of having a tax system with non-biased treatment of life cycle savings for the vast majority of taxpayers, strengths and weaknesses of the proposals and find out the winners and losers of the same. Taxation of individuals, small groups and even
7 pages (1750 words) Essay
Taxation
We have made expense arrangement easier, more transparent and hence more qualified to a globalism-exchanging world and to present day business hone. We accept that the corporate duty framework can and ought to be a
7 pages (1750 words) Essay
Taxation
It is liability to the company since it has a negative implication on financial statement of the company. The amount of tax payable by companies is dependable on the size of the firm’s income revenue. To ascertain the impact of taxation on financial statement, this project
11 pages (2750 words) Essay
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Click to create a comment