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While a tax is imposed it somehow hampers the free market operation and hence tax is subject to some social cost. Thats why an efficient taxation should minimize the social cost or welfare loss. On the other hand it should target to encourage the saving and investment in the society.
According to Adam Smith, the tax structure should be fair and clear enough i.e. everyone should have the information regarding the tax that is paid and the administration of the tax system should be clear and easy. While a tax is introduced the following facts should be kept into mind.
1. The tax system should be economically efficient i.e. the benefit of taxation should exceed the social cost of it. The benefit includes the correcting effect, allocation of resources and insurance of equality.
2. The tax system should possess administrative efficiency. It should be easy to monitor and maintain and the system should be simple enough so that the administrative cost and the compliance cost are minimum.
4. There should be close coordination between the political decision makers and the tax system. It implies that tax payers should have the perfect knowledge about the mode of operation of the taxation system and the political decision makers should be well aware of the preference of the people so that the change in decision must be the resemblance of the choice of the majority of the tax payers which is a basic feature of a democratic system.
All the aforesaid features are closely related to a fair distribution and the economic benefit of the taxes. Beneficial tax normally refers to the optimal taxation. The optimal tax theory is based on the equality and the economy of collection of taxation. While any government frames a taxation policy it should keep into mind that the taxation should be socially justified and have minimum impacts on the economic decisions. A wide
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VAT was introduced to meet the increasing revenue requirements that could not be easily fulfilled by existing turnover taxes and France was the first to adopt VAT however, pace of adopting VAT increased and soon VAT became the requirement for entry to EU (International Tax Dialogue).
Through publication of annual finance act and the budget, the government can be able to achieve environmental and economic goals (McCluskey et al pp.4-5). Consumption tax may be levied on goods and services consumed .This system may affects consumers spending behaviors.
While the politics primarily does the policy making job-both in terms of actual policy making and by giving directional impetus to policy making by other specialized agents of the State e.g. the Central Bank; it is the support bureaucracy of this polity which does the policy implementation job through its internecine presence in the concerned state.
The paper also looks at the key issues in the outflow of funds from the Federal Reserve to the local governments. It ends with the discussion of cash management at the local government level as well as the elements
hat facilitates the provision of small certain minimal amounts of funding in order to deal with issues of exceptional complications that may arise from: Certain Council Tax Changes as well as localized council tax support.
The council can achieve their desired tax for 2014/2015
Although taxation should be done on an equal level, government departments are considering a reduction for the middle class and an increase for the wealthy. The changes in tax systems are indicators of economic development of the US and other countries.
Thus, an effective tax system should ensure timely collection of tax so that it can support the various developmental programmes of the government. In effective tax system will compel the government with fund shortage that will lead to government
The meaning of efficiency would be to allocate resources in such a way so that market does not fail. Therefore; we would consider two main types of efficiencies, the productive efficiency and the parreto efficiency. Productive efficiency occurs when the economy is
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