This research will determine the effectiveness of putting incentives on tax policies in the level of tax collection of Baguio city. Its efficiency will be evaluated through the use of cost-benefit analysis, which will weigh the level of costs and benefits for the possibility of a profit for the community. As the increase in tax revenues reveal the activeness in political and economic activities of the people, it also serves as a driver in development and growth. While most of the city’s revenues come from business establishments, economic enterprises and real property according to the city Treasurer, it is intriguing how the city manages to reach their target tax collection and continue to increase their registered business permits. Incentives can be in the form of individual or corporate tax incentives, which can include deductions, benefits, etc., which will likely influence the trend of tax collection in a period of time.
Instruments that contribute in economic growth and development have been one of the agendas for nations around the world; its uses become more evident in solving the situation of developing countries after the colonization period. Exercising the sovereignty of the state through collection of taxes has been one of the major sources of physical funds to achieve the state’s quest for growth and development to generate better welfare for their people. Ahmad and Stein (1991) would say that issues regarding the principles of the theory of taxation on how efficient would the government finance its activities is still questionable. But the question that needs to be asked first is how the state would earn maximum revenues to have funds allocated properly in government expenditures. Theory on optimal taxation would su...
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...lopment-oriented goal of the community.
Incentives given should not result to loss in revenues; otherwise it will not make a perfect sense. The problem regarding the complicated tax system in our country may be analyze and change considering that according to the 1987 constitution, “The rule of taxation shall be uniform and equitable. The Congress shall evolve a progressive system of taxation. (Article VI, Section 28, Paragraph 1). The system should consider every possible situation and factors for a more collective way of taxation; this will be reflected on the concepts of good governance and division of labors in the bureaucracy.
Works Cited
http://business.inquirer.net/10205/expert-says-philippine-tax-system-a-%E2%80%98complicated-mess%E2%80%99
http://documents.worldbank.org/curated/en/2013/06/17886462/promoting-growth-caribbean-tax-incentives-theory-practice
Our current system of taxation is a varied rate percentage based on different income brackets. Many say that it violates our constitutional rights through unequal taxation. Multiple deductions, loopholes, special rates, and a complex system of regulations all characterize our Federal Income Tax System, prompting many to question why it is still being used (Peters, 2013). The current system although bringing in over $3 trillion, taxes income multiple times, and includes the taxing of estate, labor, savings, and investments (National Priorities Project, 2013). The system itself is complex with over 20,000 pages of regulations, requiring a massive filing system, which is set up and maintained by an even larger IRS, requiring over $225 billion in compliance costs (Hall, 2001). One can be hard pressed to find an advantage in the current system, other than the fact that it provides the government with an enormous amount of funds, and it has...
Lee, Y., & Gordon, R. H. (2005). Tax structure and economic growth. Journal of Public Economics, 89(5-6), 1027-1043. http://dx.doi.org/10.1016/j.jpubeco.2004.07.002
In addition, the current tax system in Texas us not beneficial because it is considered regressive. The tax system is regressive because it does not help in lessening the gap between the classes and it does not include beneficial characteristics. The Texas tax system will benefit from adding a personal income tax structure and proving personal income tax credits. If these changes were made to the current tax system, Texas will benefit greatly economically and socially because the wage gap between the lower classes and upper classes will decrease and more balance will be a
The first argument of this paper shall discuss the use of fiscal federalism as a highly beneficial and worthwhile cost for maintenance of policy proposals. As fiscal federalism is defined as “understanding which functions and instruments are best centralized and which are best placed in the sphere of decentralized levels of government” , it will be witnessed that the decentralized use of fiscal federalism is its best use. Fiscal federalism refers to vertical imbalances where the central government gives too much or too little money to lower levels of government. If local governments and...
The author is a editor and writer for a textbook publishing company. She argues that there are pros and cons of the system that is in place now, as well the new proposed flat tax system. With the flat tax system it would be easier for businesses and individuals because the tax would be simpler making taxes easier. There would be more drawbacks with the flat tax system such as: fewer jobs for accountants—no tax deductions. States would also be allowed to implement their own taxes. For those reasons they believe that the current tax system is the best system and people would not support a flat tax. The circumstances that cause the chapter to be written is that there could be a need for new textbook to be written. The purpose of the article is to educate students about the government, especially in America, this chapter was about taxation. The audience are students of either history or politics. He believes it will not be used in America: “The plans sound straightforward and have much to recommend them. But convincing voters and taxpayers to embrace them is a monumental task. People complain about their taxes, and the thought of taxation taking on a radically different form is a lot for people to
The Earned Income Tax Credit (EITC) is a program that was set in place, in 1975, to improve “the economic status of low-income persons […] granting nearly $40 billion to low-income households” (Borjas, 59). As is clear from the name of the program, The EITC is a program that provides tax credits to those who qualify, the EITC could even produce a negative tax liability for some households, in particular the type I will discuss, which would provide substantial income increases for these households. In order to qualify for the EITC, the recipients must be active members of the labor force, in that they must have labor income, and for the group that I will be focusing on, single mothers, total household income must be below $33,241 for single parents with one child and $37,783 for single parents with two or more children. According to Economist Hillary Hoynes, in a presentation given to the Chicago Federal Reserve Board in 2007, the maximum available credit for a single parent with 1 child was $2,853, with the maximum available credit for single parents with two or more children being $4,716. (Hoynes, 2007) The EITC has provided assistance to countless American families while still providing them with an incentive to remain in the labor force, unlike many other welfare programs. I will focus on a certain subset of people receiving the Earned Income Tax Credit: single-mothers.
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.
The budget plan has announced the “Scheme $6,000” this year. It is a scheme that people who have Hong Kong Permanent Identity Card aged 18 or above can get $6000 from government. People who choose to defer receipt $6000 can have $200 bonus. It seems that it is a good policy for people: low-income group can have this subsidy to solve their financial problem; the others can save it, or use it to buy their favourite items. But when we think it seriously, is it really a helpful subsidy for low income group? Does the government only consume this bulk of $6000 and $200 bonus? Is it an efficient and fast process to give $6000 to people’s hand? Up to now, the “Scheme $6,000” has used almost 8 months to plan and work the delivery process. Compare to the delivering money process of Macau in recent years; it is a non-efficient and time-consuming way to plan and deliver. In this essay, we would focus on 4 aspects: time used, cost consumed, human resources and the long-term benefit. To find that is “Scheme $6,000” really benefit both government and Hong Kong people or not.
Gurría, Angel. "Improve tax fairness and help the developing world." OCED. Organisation for Economic Co-operation and Development, 24/04/2009. Web. 9 Oct 2011. .
The purpose of this paper is to illustrate the layout of taxation. I will differentiate the types of taxes and the roles that they serve currently. Subsequently, I will explain what equity, efficiency, effectiveness and transparency (EEET) are and show how they apply to taxation as a whole. Lastly, I will conclude how the EEET applies to the four tax types.
Although this view has undergone considerable modification by economists in the light of historical developments since Smith’s time, many sections of The Wealth of Nations notably those relating to the sources of income and the nature of capital, have continued to form the basis of theoretical study of the field of political economy. The Wealth of Nations has also served as a guide to the formulation of governmental economic policies.
Why nations Fail: The Origins of Power, Prosperity, and Poverty, is a captivating read for all college economic courses. Coauthored by Daron Acemoglu and James A. Robinson, they optimistically attempt to answer the tough question of why some nations are rich and others are poor through political economic theories. They lay it all out in the preface and first chapter. According to Acemoglu and Robinson, the everyday United States citizen obtains more wealth than the every day Mexican, sub-Saharan African, Ethiopian, Mali, Sierra Leonne and Peruvian citizen as well as some Asian countries. The authors strategically arranged each chapter in a way that the reader, whomever he or she is, could easily grasp the following concept. Extractive nations that have political leadership and financial inconsistencies within their institutions are the largest contributor to poverty and despair within most countries. It also states that countries with socioeconomic institutions that work ‘for the people and by the people’, or in other words, focus on the internal agenda of that
After analyzing the data and the theory, we have provided our conclusion weather tax cut is better for the stimulation of growth or Government spending is? This report explains the big macroeconomic debates of the present times. It seeks to explore the debate within fiscal policy itself between tax cuts and government spending. We have tried to explain the argument through some theories and through some data collected from Indian econ...
Empirical studies were conducted all over the world to estimate the compliance cost. Evans (2008) acknowledged that the number of the compliance and/or administrative cost studies conducted and published after the Haig’s (probably first organized compliance cost study) study in 1935 is more than 100. Despite the existence of the large body of literature, the concept of tax compliance cost remain ambiguous. Most of the research narrow the concept to the objective of their research. Therefore, this essay aims at bringing an overview of the concept in single essay. The next section of the essay discusses the definitions of compliance cost, the third section discusses aspects of compliance cost and finally, the last section gives a recap of the essay.
... of revenue collection of the machinery of redistribution, important though these are. An optimal financing mix should do three jobs well: (i) generate the resources needed to establish and strengthen appropriate social protection systems; (ii) ensure that the incentives generated by the financing modalities reduce child poverty and child vulnerability; and (iii) secure legitimacy for social protection institutions and policies. Section three examines the main issues involved in financing social protection in low income countries, beginning with a discussion of trends in sub-Saharan Africa, and the issues raised by the current global crisis; followed by a discussion of alternative policy strategies adopted in three Latin American countries: the use of natural resources in Bolivia; budgetary surplus policies in Chile, and borrowing in Mexico. Section four concludes.