Goals of Taxation
Goals of Taxation
Taxation is the imposition of a mandatory levy on the citizens and businesses of a country by their government (Answers.com, 2010). Almost every country has a government that receives their revenue for financing public services from taxation. Taxation supports the government in exchange for advantages and protection afforded by the government to the taxpayer and their property (Answers.com, 2010). The goals of taxation are to raise revenue, be fair and influence behavior.
Taxes can be broken down into two categories which consist of Excise Taxes and Property Taxes. Excise Tax is taxes on merchandise, products or certain types of transactions, for example obtaining a license or transferring property. An example of Excise Tax is Estate Tax. An Estate Tax is the tax implemented on an estate and paid by the heir before distribution. Another example is Sales Tax which is what citizens pay when purchasing goods and services. Also there is Corporate Tax which allows a company to conduct business and advantages of liability. Income Tax is the major contributor in providing funds for the federal government to operate. Citizens pay taxes throughout the year but are rewarded in the end with their income tax.
Property Tax is the taxes owner’s pay for their property. Property tax is focused mainly on property. Property can consist of land, buildings, and improvements for example buildings. A taxing authority does an appraisal on the property and taxes are based on the current value.
Economic policies on politics
Economic policies is actions a government will implement to improve the economy of a city, state or nation. Government regulations can be compared to a double edge sword. Regulations affects the cost of conducting a business and the comfort of doing business. Regulations set by the government is not always successful and people argue why are they even