citizens’ incomes. An effective tax should be simple and fair to all people no matter how much their income is. Currently the United States has a progressive income tax system.The progressive tax system is where people with a higher income are required to pay a higher tax rate because they should be able to afford it. Regressive tax makes lower income taxpayers pay a higher rate than higher income taxpayer. Proportional income tax is where everyone has an equal tax percentage (Oklahoma Policy Institute
Flat Tax vs. Progressive Tax The American economy has never been fully functional, and a way the government receives the money it needs for the country is by taxing the American people. There are many different types of taxes but only two main ones, Flat Tax and Progressive Tax. Both tax the people; but one does it equally, and the other does it to help. Flat Tax is a way to tax everyone equally. I can understand that many Americans want everything to be equal, but when it comes to incomes those
BOHAN ZHANG BSBA12005 Assignment 1. Personal Taxation Personal taxation is a direct tax levied on income of a person. A person includes an individual, a company, an Association of Persons (AOP) or Body of individuals (BOI), a local authority, a non-juristic body of person and an undivided estate. In general, a person liable to personal taxation has to calculate his tax liability, file tax return and pay tax by the end of the year to the government. Based on the definition of income, we can interpret
activities and in the incentives of investing. Generally, the tax structure has to be tailored considering the country's economic structure, its capacity to generate revenue from them, its public service needs, ability to collect them and a myriad of other factors. The main purpose of taxes is to create sufficient income to finance the government services to the public in a way that does not increase the inflation. The structure of tax system is related with the level of development, the need or want
II. Discussion of findings 1. The role of the government in a market economy The current market economy has been facing with various fluctuation causing from both inside and outside forces. In every situation, it is immediately necessary to make correct policies to guide the economy out of dangerous positions, and prevent it from falling into a long period of stagnation, recession or high inflation. The famous theory “invisible hand” of Adam Smith, on the one hand, highly appreciates the market management
CHAPTER - I INTRODUCTION “History has come to a stage when the moral man, the complete man, is more and more giving way, almost without knowing it, to make room for the commercial man, the man of limited purpose. This process aided by the wonderful progress in science, is assuming gigantic proportion and power causing the upset of man’s moral balance, obscuring his human side under the shadow of soul-less organization.”- Rabindranath Tagore, Nationalism, 1917. Aristotle felt that the purpose of