Essay on Role of taxation to development of the country 900 word in english
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Tax can be defined as "a compulsory contribution to state revenue, levied by the government on personal income and business profits or added to the cost of some goods, services, and transactions. " (Electronic Concise Oxford English Dictionary, 2010). Tax regimes vary from country to country but are an integral part of most governments in industrialized countries (Carnell, 2010).
There are two broad classification of tax, these are (A Tax system for New Zealand's Future, 2010):-
Revenue Tax: - raise revenue for government spending.
Corrective Tax: -these have specific purposes such as promoting or discouraging certain behavior.
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The Role Of Taxation In An Economy Economics Essay
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Published: 23rd March, 2015
This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.
The first part of this report provides a brief overview of the role of tax within a country's macro economic environment. Taxation can be collected from a number of sources diagrammatically shown in the circular flow of income figure. Governments make use of taxation as a tool to generate revenue, discourage undesirable behavior, reduce inequality, distribute resources and to protect local industries.
The report reflects on the current NZ taxing system and identifies current bottlenecks/flaws. The major of these being the corporate-, trust- and personal tax rates not being aligned which creates unwanted economic behavior. It then moves onto the soon to be implemented changes in an attempt to address these issues. Briefly the personal- and trust tax rates will be aligned with the corporate rate slightly fixed under these. Various base broadening policies will be implemented to finance the reduction in these rates.
Taxation has a key role in a modern economy. Listed below are the ways in which governments can use taxation in a modern economy:-
Revenue generation: - Taxation is used by the government to raise revenues for its operations, infrastructure, welfare, education defense (Carnell, 2010).
Behavior Discouragement: - Also referred to as social engineering, the purpose of this is to discourage people from antisocial behavior and is often done heavily taxing the commodity there by increasing its price (Carnell, 2010).
Reducing Inequality: - Tax money is used to serve the weaker sections of the society through the welfare programs (Carnell, 2010).
Resource Redistribution: - Can be used to transfer resources form one section of society to another section of the society (Carnell, 2010).
Protecting local Industry: - Local industries are normally protected by the government through the use of heavy import tariffs. This makes the imported goods more expensive then the local goods and thereby encouraging the production of local goods (Carnell, 2010).
hope this answer helps u
Tax can be defined as "a compulsory contribution to state revenue, levied by the government on personal income and business profits or added to the cost of some goods, services, and transactions. " (Electronic Concise Oxford English Dictionary, 2010). Tax regimes vary from country to country but are an integral part of most governments in industrialized countries (Carnell, 2010).
There are two broad classification of tax, these are (A Tax system for New Zealand's Future, 2010):-
Revenue Tax: - raise revenue for government spending.
Corrective Tax: -these have specific purposes such as promoting or discouraging certain behavior.
2
UKESSAYS
SIGN INORDER NOW
Writing ServicesFree ResourcesAbout UsPricesCall us

The Role Of Taxation In An Economy Economics Essay
REFERENCE THIS
Published: 23rd March, 2015
This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.
The first part of this report provides a brief overview of the role of tax within a country's macro economic environment. Taxation can be collected from a number of sources diagrammatically shown in the circular flow of income figure. Governments make use of taxation as a tool to generate revenue, discourage undesirable behavior, reduce inequality, distribute resources and to protect local industries.
The report reflects on the current NZ taxing system and identifies current bottlenecks/flaws. The major of these being the corporate-, trust- and personal tax rates not being aligned which creates unwanted economic behavior. It then moves onto the soon to be implemented changes in an attempt to address these issues. Briefly the personal- and trust tax rates will be aligned with the corporate rate slightly fixed under these. Various base broadening policies will be implemented to finance the reduction in these rates.
Taxation has a key role in a modern economy. Listed below are the ways in which governments can use taxation in a modern economy:-
Revenue generation: - Taxation is used by the government to raise revenues for its operations, infrastructure, welfare, education defense (Carnell, 2010).
Behavior Discouragement: - Also referred to as social engineering, the purpose of this is to discourage people from antisocial behavior and is often done heavily taxing the commodity there by increasing its price (Carnell, 2010).
Reducing Inequality: - Tax money is used to serve the weaker sections of the society through the welfare programs (Carnell, 2010).
Resource Redistribution: - Can be used to transfer resources form one section of society to another section of the society (Carnell, 2010).
Protecting local Industry: - Local industries are normally protected by the government through the use of heavy import tariffs. This makes the imported goods more expensive then the local goods and thereby encouraging the production of local goods (Carnell, 2010).
hope this answer helps u
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