Introduction
The Value Added Tax(VAT) is a kind of consumption tax which mainly imposed on the value added to a product, material or service. The first country to have a value added tax is France in 1954. Since then, over 170 countries adopted the VAT as an important part of their government revenue system. VAT is almost imposed on the valued added of both the business activities and different business stages. That is, VAT links the whole business together, anyone in the business activities cannot avoid paying a VAT. Therefore, VAT cannot affect people's consumption behaviors and prevent the economy from distorting by the taxation. Meanwhile, such properties make VAT become a large tax source to sustain the government revenue and the linkage between different business activities simplifies governments' tax inspect, that is why over half of countries in the world adopt a VAT tax.
Dongwon Lee, Dongil Kim, and Thomas E. Borcherding(2013) pointed out that countries from the Organization for Economic Co-operation and Development (OECD) collect about 32 percent of their total revenue from VATs and 27 percent from personal income. According to the Figure 1, most of OECD countries relied a lot on the VAT, the VAT proportion of total tax revenue varies from 10% to 38%. Therefore, for a lot OECD countries, the VAT is really important.
The United Kingdom introduced its value added tax in April, 1973, with a rate of 10% and the VAT averagely provided the UK government about 14%-16% of its total government revenue. Canada introduced its Goods and Services Tax (basically the same as the VAT) in January,1991 at the rate of 7%, but now it is 5%. Annually, GST contributes over 10% of tax revenue. In nowadays America, there is no VAT, but it w...
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One place where taxes were and are a problem still in the society is America, many rebellions and wars were caused from the tax increase.
When George Washington was elected president, even though he was reluctant, he worked hard to ensure peace in the nation. Washington and his Cabinet knew that taxes were important, and the men were very cautious when passing them. The government was new, and could be overthrown just like the colonists did in the Revolutionary War. Also, the French Revolution was occurring, and Cabinet members didn’t want their government to be criticized to the point of rebellion and violence. Washington and his Cabinet were careful, passing just the Excise Tax on luxury items. The men knew the danger of taxes, but today, that notion has seemed to be pushed aside. The taxes in America are high, and just getting higher, much to the disgust and anger of Americans.
vat at this current moment that the brain will not be able to tell a
While most taxpayers agree that tax reform is necessary for our country the problem they encounter is the difficulty they experience when trying to understand all the political terms used when discussing tax reform. This paper is an attempt to help the taxpayers of our country to better understand the political terminology and gain knowledge about some of the proposals that have been explored.
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Taxation has always been a major controversy. Just like any major corporation, the government is constantly looking to raise revenue. The easiest and fairest way to do this is by taxing the people. However, how the people will be taxed is always an issue.
Taxes in the United States include payroll taxes, property taxes, sales taxes, and a multitude of others. These taxes may be imposed on individuals, business entities, estates, trusts, or other forms of organizations. In general, there is a lot of inquiry on the current tax system. With endless loopholes, a regressed economy, and corruption there has been widespread anger on the current structure of taxation. Consequently, the wealthy have managed to become even richer despite the economic crisis. Furthermore, many taxpayers in the upper class have found loopholes to avoid substantial taxation or otherwise known as tax evasion. (Stewart 2013) Tax evasion has only grown over the years and with the national debt has become a major issue. What is more, is the intense complexity of the entire taxation process. Addressing all the issues and problems regarding the taxation structure is a meticulous and arduous process. With this in mind, politicians from both parties have tried to address individual issues within the taxation paradigm. Being that the United States has the highest corporate tax in the globe, politicians have tried to change policy regarding taxation on businesses. (Sullivan 2013) How...
The use of taxes is one of the government's favorite ways to make its presence known in the economy. While this method seems blatantly obvious, many of the ways the government uses the money collected by taxation is not. Some of the money it takes is used to fund other programs designed to "protect" consumers and to "create" jobs. Be...
The four types of taxes this paper will discuss are income tax, sales tax, property tax, and user fees. Income tax was not permanently established until the 16th Amendment was passed in 1913. Most federal taxes had been previously derived from excise taxes on tobacco and alcohol and other consumer goods. The US Constitution, when written and still continues to, legitimize taxation in the United States through Article I, Section 8, that Congress has the power to lay and collect taxes, duties et al, pay the debts or provide for the common defense and general welfare of the United States (Cornell Law LII). Investopedia defines income tax as ‘a tax government(s) impose on financial income generated by all entities within their jurisdictions (Investopedia, 2014). Businesses and individuals are required to file an income tax return every year to determine if they owe taxes or qualify for a refund. That is determined by measuring the total income one earns to a designated tax rate, calculating one’s taxable income, which are some or all items of income reduced by other adjustments or expenses in that tax year. There are different subcategories of income tax; there is a federal income tax that is set by the federal government, apart from a few states, there is a state income tax that is imposed on their respective residents, as well as the possibility of there being local income tax ...
And as China transforms its economy into a ‘socialist market economy’ it is held that the attendant social, economic, and political transformations necessitate that its state controlled IRs system is decentralized and more so, it should be converge with international best practice IR standards (Zhu, Warner, & Feng, 2011). Although the Chinese government has endeavored to reform its labor market, the “deep-rooted national culture and its long history of centralized state power” as exhibited by the tenets of the all-powerful All-China Federation of Trade Unions1925 (ACFTU), has meant that any initiated IRs reform should be “with Chinese Characteristics” (p.128). It is important to note in the 1980/90s most countries in the Western hemisphere and Asia restructured their IRs systems. This episode can be attributed to factors specific to these countries; but owing to the fact that most of Asia’s economies are linked to the global economy, it is posited that this process may not have been coincidental but it was occasioned by competitive pressures in the global labor market (Kuruvilla & Erickson,
In our opinion government spending is better than tax cuts. Government spending increases the employment as well as the income of the people of the country, though tax cut only increases the wealth of the people who may not spend the extra money earned and help in the growth of the economy.
The famous literature on principles of taxation was embodied in Adams Smith “Canons of taxation”. Since then, economies have adopted (and adapted where necessary) these basic principles for what is regarded as the most important tool of fiscal policy.
Manitoba, a place knew for adoring new and high taxes, refused to add junk food taxes because they knew that it was going to be a waste of time and there would not be any positive results (5). The many studies of junk food taxes have soon other countries that it is not going to work. People will find other alternative to get the sugary high they need. A study in a small city showed that soda intake decreased for a small amount of time and then it increased again, as well as the sales on beer increased (Luciani P.