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Compose a 1000 words essay on Tax System. Needs to be plagiarism free!Download file to see previous pages... iv. Flat tax system has shown its worth in some of the countries like Russia, and some othe
Compose a 1000 words essay on Tax System. Needs to be plagiarism free!Download file to see previous pages...
iv. Flat tax system has shown its worth in some of the countries like Russia, and some other economies in transition like the Slovak republic, while some OECD nations like Italy, Greece and Mexico and actively pursuing the matter
i. The population of aged people is rising, which calls for adequate arrangements for their healthcare and other social needs. In fact the corporate sector has already taken note of the needs of senior citizens and accordingly started tuning their products and services accordingly. It is therefore duty of the government as well to supplement such efforts while making efforts for strengthening the health care facilities etc.
ii. Education needs of the children are to be met with funds collected from this account. Higher education is becoming very costly now a days and increasing competition in the job market/ outsourcing of jobs calls for a well prepared youth.
iii. Russia was the first major country to adopt a flat tax rate in January 2001, when it declared a flat rate of 13%. Over the next year, personal revenue jumped by 26% in real terms, and as a percentage of Russia's GDP, incomes increased by a fifth. It is worth considering that if a country which has been facing series of troublesome situations for quite a while, why other developed and well placed countries can't do it.
The real dilemma is how to fix the tax slabs. While a lower tax rate might create incentives to work, to save and invest, to become an entrepreneur and to take risks. It might as well throw away the real benefits of such a system. On the other hand a high tax slab proves different in cases where the tax bases keep shifting particularly when globalization and opening up of economies is the key trend.