Taxation Case

Published: 2021-06-29 07:10:40
essay essay

Category: Social Issues

Type of paper: Essay

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Hey! We can write a custom essay for you.

All possible types of assignments. Written by academics

GET MY ESSAY
After examination of the various taxes that exist (direct and indirect), and relating them to various countries (Barbados, United Kingdom and India), it cannot be concluded that any particular type of tax is indeed better than the other, in fact there should be a blend of both for a tax system to be effective and a well-balanced one. It is acknowledged that there are quite significant advantages and disadvantages to the both types of taxes, as well as very persuading arguments for the use of one over the other in a tax system.
However, the key determinants of which taxation methods to use in a country's tax system is based on firstly the size of the country's economy. This is a significant factor as if a country's economy is a small one, it may be wiser to have greater emphasis on indirect taxes. This is because a lower direct tax rate will result in greater disposable income, which will result in greater spending in the economy. The government will use this spending to generate revenues through indirect taxation and these revenues generated may be greater than or proportionate to that of the taxes that are generated by direct and other forms of taxes. This was reflected in the revenues of Barbados in 2003 generated by tax. The total tax generated in this year totaled $993.4 million with the indirect taxes accounting for $548.8 million or 55.2%.

Warning! This essay is not original. Get 100% unique essay within 45 seconds!

GET UNIQUE ESSAY

We can write your paper just for 11.99$

i want to copy...

This essay has been submitted by a student and contain not unique content

People also read