Taxation Role in Improving the Economy of a State - Term Paper Example

When a country formulates its policies it takes into consideration its domestic economy.... Positive Economics Effects: In actual taxation is for the smooth flow of national affairs and stability in the country and promoting economy.... The paper "The role of Taxation Policies under Globalisation and Trade" describes that technological advancement has changed the shape of trade and consequently taxation.... Governments are continuously changing their taxation system to meet up new requirements and collect legal taxes....

It proves that the act of saving money is not beneficial for the overall economy of a country but it creates problems.... This act is harmful to the economy of the country.... To understand the ultimate impact of tax on economics, it is imperative to evaluate this impact in terms of the purchasing power of individuals as well as the economy's aggregate supply.... If it is accepted that the imposition of tax only deprives people of money then it would be concluded that taxes hurt the economy....

According to Stettner, WHO defines good health as a status when someone has a sound physical, mental, or sociological state that warrants him or her to be in a state of well-being (209).... It may also refer to a state in which one has no disease.... Ensuring the good health condition of the citizens who are consumers is a common role of businesses and governments....

A free market elevates the overall economy of a country, but there are unfortunate situations when a free market has dysfunctions.... Division of labor is important in an organization because it facilitates a balance in the economy to reduce the cost of production (Mathur par 2).... he government taxation policies also help in redistributing income in the economy by taxing the rich heavily and using the taxes to provide social services to low-income citizens....

The initial measures mentioned above had significant impact on the economy of Vietnam.... This in result had direct impact on the FDI and increased the overall productivity of the economy.... Through these reforms the overall growth in the revenue of the economy increased by more than five times.... REFORMS IN THE TAXATION POLICY OF VIETNAM The taxation system plays a very important and critical role in structuring the macroeconomic conditions of the economy....

Fiscal policies such as taxation have a role to play in Keynes theory, an increase in taxation in each stage above will reduce consumer spending, and therefore a reduction in taxation in the above case will lead to an increase in spending and therefore in a recession a reduction in taxation improve spending.... The paper "Government Intervention in Times of Economic Downturn" describes that the government should also increase spending on infrastructure which will provide employment increasing spending and the other measure is to reduce taxation although this is less effective in stimulating spending....

Empirical analyses of literature on economic surveys reveal that taxation has played one of the most notable roles in improving the economy of the UK.... Empirical analyses of literature on economic surveys reveal that taxation has played one of the most notable roles in improving the economy of the UK.... Savings and taxation play a central role in evaluation of economic development of any country.... Savings and taxation play a central role in the evaluation of the economic development of any country....

roposed RecommendationsSome recommendations proposed in improving the tax system by Mirrlees are analyzed below.... This recommendation achievement relies on savings taxed within a state of residence with no difference in foreign and domestic savings (King 216).... Since household savings are one of the main sources of expanding an economy, various factors emerge in place to find out on the rate of saving.... Since household savings are one of the main sources of expanding an economy, various factors emerge in place to find out the rate of saving....