StudentShare solutions
Triangle menu

Taxation and growth - Essay Example

Nobody downloaded yet

Extract of sample
Taxation and growth

widespread drop in spending or decrease in demand, and the economy faces a lot of inflation that is the general increase in the prices of all goods in the economy. This affects the level of growth in such an economy since most of the income is used on consumption and very little is spent on growth and development. Therefore, the level of growth declines significantly. This can be reversed during economic recovery by use of fiscal policy. This is where the government uses taxation or fiscal policy measures to be able to control the economy (Barro & Gordon, 1984).
U.K experienced an economic recession between 1998 and 2012. This was stimulated by the worldwide inflation that was affecting the economy in terms of prices of goods. The government of U.K adopted the use of tax policies to be able to gain economic recovery and growth.
Increasing demand is a tool for short-term recovery. This can be done through reduction of consumption taxes. In return, people will spend more hence; there will be an increase in demand, which will stimulate business in the economy. Hence, economic recovery in the short run will be achieved.
Increasing the supply in the economy would stimulate long-term economic recovery. This can be done through reducing the taxes for inputs and raw materials that will make them cheaper to stimulate supply. This will therefore lead to increased supply in the economy since suppliers can be able to buy more goods to supply their goods to the market, which leads to economic growth through trade.
Low-income earners have very little disposable income. If the government would reduce their taxes, the little income that would be saved would stimulate demand and hence help the economy recover from recession. This is because low-income earners have little to save and to invest meaning that most of their income is used to buy basic commodities. As a result, demand increases and the economy grows significantly.
Consumption is a daily activity for every person. ...Show more
Cite this document
  • APA
  • MLA
(“Taxation and growth Essay Example | Topics and Well Written Essays - 2000 words”, n.d.)
Retrieved from
(Taxation and Growth Essay Example | Topics and Well Written Essays - 2000 Words)
“Taxation and Growth Essay Example | Topics and Well Written Essays - 2000 Words”, n.d.
  • Cited: 0 times


It uses different bases on different people and corporations to be able to collect as much tax as possible. These taxes are the major source of revenue for any…
Taxation and growth
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Taxation and growth"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

According to the online publication, the government of the United Kingdom “is committed to reinforcing the sustainability of the fiscal position” of the United Kindom. In addition, the UK adheres to tax efficiency in that “the tax system should place minimum economic costs on society and markets while helping provide the right incentives to growth” (UK Parliament, 2011).
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 and Growth
Different countries adopt different tax policies that are suitable for their economies. During an economic recession, this essay tooks the U.K. as an example, there is a widespread drop in spending or decrease in demand, and the economy faces a lot of inflation that is the general increase in the prices of all goods in the economy.
7 pages (1750 words) Essay
Corporate Taxation
In order to gain a more informed and knowledgeable viewpoint on corporate taxation in general, and about the major tax changes that have taken place over the last two decades and how these have influenced corporate taxes overall, we will have to do several things.
6 pages (1500 words) Essay
Then it moves onto discuss the issues of the chargeable disposal, the exemptions and part disposals. A company operating in a market has to undergo many processes e.g. the earning of revenue, the deduction of the costs, the payment of wages etc. The consideration of taxes
8 pages (2000 words) Essay
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
Secondly, taxation treatment of savings helps distinguish between an individual’s lifetime and annual incomes which is employed in the equitable distribution of income and equalization of wealth across the
8 pages (2000 words) Essay
Taxation essay
There are many arguments for taxation, but depend with the circumstances at a particular period. In the advent of taxation, the British authority needed revenue to finance the war and management of colonies in the U.S. During the 1930s, the principle
6 pages (1500 words) Essay
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
The 50% rate was imposed on incomes higher than £150,000. This led to mixed reaction to the budget as taxing the wealthy was seen as a very major change in the labor government. Questions were raised as to whether this change would raise the funds anticipated by the
6 pages (1500 words) Essay
Comments (0)
Click to create a comment
Let us find you another Essay on topic Taxation and growth for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us