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The evaluation of the consequence to the UK economy for raising or lowering the inheritance tax rate - Dissertation Example

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The main purpose of imposing taxes is to fund public spending and is supported by laws and statutes. In most countries, taxes are imposed on revenues obtained by firms and earning individuals. Other forms of taxes such as tariffs, and dues have further expanded the revenue generation activities of governments…
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The evaluation of the consequence to the UK economy for raising or lowering the inheritance tax rate
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Download file to see previous pages Taxes are considered as the main revenue source of governments. The evolution of imposing taxes dates back during periods when most governments lack stability and structure. The main purpose of imposing taxes is to fund public spending and is supported by laws and statutes. In most countries, taxes are imposed on revenues obtained by firms and earning individuals. Other forms of taxes such as tariffs, and dues have further expanded the revenue generation activities of governments. The role that taxation plays is critical especially economies that are dependent on taxes. The imposition of taxes is also viewed as one of the ways that balances wealth inequity in countries and ensure better provision of social services.
Income taxes serve as the main contributor to the total tax collections made by governments. But other forms of taxes such as sin taxes and estate taxes are also contributing to the coffers of governments. Inheritance taxes have become a popular form of tax in recent times because individuals have learned to invest in both properties and securities. The transfer of wealth because of death provides opportunities for the government to gain more revenues. The existence of inheritance taxes has been subjected to several debates in the United Kingdom. The past three administrations have been also contemplating on reforming the inheritance tax laws.
The budget of the government is highly dependent on the amount of tax collected each year. There are countries that develop new taxes just to meet collection targets and prevent the states from running on a budget deficit. The succeeding discussions will tackle the impact of inheritance tax in an economy specifically focusing on macro-economic indicators and statistics. 1.1. Objectives of the Study The primary purpose of the dissertation is to explore on the effects of the increase ...Download file to see next pagesRead More
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