Please boost your Plan to download papers
Topical Tax Issue - Essay Example
Pages 6 (1506 words)
The topical tax issue which will be examined is the examination of budget 2007 income tax measures using the poverty impact assessment guidelines. These new guidelines were issued by the office for social inclusion located in the department of social and family affairs during 2006…
The guidelines are intended to replace the previous poverty proofing guidelines issued by the department of social and family affairs and in this article are referred to as poverty impact assessment guidelines. The poverty impact assessment process aims at identifying the impact of policy proposal on those experiencing poverty or at risk of falling to poverty so that this can be given proper consideration in designing or reviewing the policy.
The process does not intend to fundamentally transform policies to target visibly the disadvantaged but are aimed to identify anticipated negative impact and put measures to counterbalance such impacts. Moreover, positive impacts are also identified so that they can be improved.
As included in Budget 2007, these social welfare measures will benefit taxpayers at the lower bracket of income distribution. This is because the absence of such measures may lead to these taxpayers experiencing a significant deterioration in their income in relative terms. Analyzing these measures on the view of combined effect of social welfare changes and tax changes, they highlight that the most significant net income gain are to those on the lowest incomes. It indicates that much smaller gains will be to those in the middle to high income brackets. ...
Not exactly what