If you earn an income, you must pay a tax. Nobody can run away from paying tax. However, a taxpayer may be an individual or an entity such as business that is obligated to pay a certain amount of their income to the government. Tax aids the government to improve and enhance the country by providing facilities and build infrastructure and resources for the society.
Tax can be catogerized into two category which is direct tax and indirect tax. Direct tax is a tax which the burden cannot be pass on to another individual. All income that is received by an individual will be taxed by the government from their allowance. One of the example of this category of tax is personal income tax. Direct tax consist of progressive tax as higher income group will be tax at a higher percentage from their income, whereas lower income group will be tax
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This means that an individual is possible to skip from paying tax to the government by transfer the tax burden to another person. One example of indirect tax is Value Added Tax (VAT) or it can also be called as Goods and Service Tax (GST) in Malaysia. This VAT is tax imposed on goods and services. When government imposed indirect tax in the country, supplier or producer will be able to passed on the tax burden by charging a higher price than the original price from the consumer and pay back to the government. Overall, at the end of the transaction in a business, the final consumer will be one who have to accept the burden to pay the tax. Indirect tax brings the pros that it will have a lower possibility for the society to run away from paying tax. Moreover, it is not as complex and pricey as direct tax for the government to collect. Indirect tax can also consequently lower down the unethical behaviour such as use of carbon or other toxic products which will harm the environment. Govenrment could also reduce the
Sales tax is income elastic; because of this fact, consumers have a higher tax incidence and carry the burden. From this, it has been evidenced that the tax burden is vertically unequitable and can be seen as unfair to the less fortunate. Sales tax is paid by retailers, which is dependent upon their sales revenue. However, since the demand of consumers is inelastic and can vary based on market and economic conditions, this burden is felt more by lower income individuals and families. However, it is important to note that the tax burden is independent of who physically pays the tax.
Britain was finally receiving a moderate revenue from the colonies after putting this act in effect. The act helped decrease the amount of smuggling from American shippers and they were assumed to enjoy the external taxes. There were two types of taxes known as the internal and external taxes. The internal taxes meant that goods within the colonies and the property, such as the Stamp Act, were being taxed on. The external taxes meant that goods being brought into the colonies, like the Sugar Act, were being taxed on.
When a person pays this kind of tax, he/she know how much and why he is paying. However, with indirect taxes, the government imposes a tax on goods that is meant to be paid by the seller. With this type of tax, the common people do not know how much or if they are paying taxes. Dickinson then goes on to reiterate that although the taxes may be small right now and the burden tolerable for the people, it sets a precedence that makes the colonists, in effect, slaves: “the late act is founded on the destruction
People may not like taxes but they are used to invest in new Technology, education and public welfare of the people like Medicare, Medicaid, social security, and general protection. They can borrow money but that always affect taxpayers but the money will always be repaid to the lenders but the only way is by raising taxes (Concurrent Powers). Concurrent powers are able to enforce laws, "...law
Since Britain had just gone to war and needed to pay off their debts, they taxed the colonists multiple times. The Sugar Act was an example of this. It placed a tax on sugar, molasses, and other sweet products shipped to the colonies. Many colonists reacted by boycotting the British products and buying them from other sellers. Another example of how the British taxed the colonists would be when Britain taxed colonists on paper.
The British taxed us so they could get money for weapons soldiers etc. Secondly, the British made the stamp act. The stamp act placed a tax on all printed paper. Third, the British state “without money the government would not be able to function”.
In the late 1800s, the U.S Treasury Department used sales tax and tariffs to fund its federal budget. A tax or tariffs are funds that are paid to the government that are added when something is bought that is considered valuable. Because of the Civil war, there was a financial burden on the country. In 1861, Congress reacted by implementing taxes on individuals. The first income tax started off by taxing individuals 3% making more than $800, while people who made more than that gave up a larger percentage.
Parliament had passed the Sugar Act and Currency Act the foregoing year. Because tax was collected at ports though, it was simply evaded. Indirect taxes such as these were also much less clear to the consumer
For example, a tax would unfairly burden rural farmers who depend on whiskey production as a means of subsistence. Whiskey was an item of income for those farmers engaged in a semi-natural
Although this may be true for some families, the majority will not be willing to pay the extra tax. even if they can afford it. The tax will also serve as a constant reminder to customers as to why this may not be the best option for themselves or their
Income inequality is a global issue that need to be addressed and is a threat to the individuals or household with low income. In today’s world the rich are becoming rich while the poor are deteriorating and going below the poverty line. To me, imposing high income taxes would not bring an immediate solution only that, it accelerates the burden. Because the higher the tax rate, the higher the rate of poverty subjected to the low income individuals. Due to that, the government should provide quality education to the citizens so that they become self-reliant in the future and experience high living standards.
The colonists wanted representation when it came down to being taxed, but the British government would not allow it. The government wanted full control over the people, so they made sets of acts and laws that were placed on taxation. For example, the Stamp Acts of 1765. These acts taxed all papers, pamphlets, newspapers, and cards. The Townshend Acts of 1767 were also a large part of taxation.
Some people with be mad about getting taxed more and some people wouldn’t mind getting taxed more as long as it is doing something like helping someone that needs help or saving their lives. “About 800 000 people commit suicide every year… Mental disorders and harmful use of alcohol contribute to many suicides around the world. ”(www.who.int) The people I think that won’t like getting taxed the most are people like Lennie and George who are struggling with money as is
The following year, this tax was deemed unconstitutional due to the fact that the tax was direct, not at all connected to the population of each state. The 16th amendment was the result of the U.S. Supreme Court’s decision to declare the flat rate Federal income tax unconstitutional. Between 1909 and 1913, government earnings came from tariffs, which were placed on imported products. “The burden of these taxes fell heavily on working Americans, who spent a much higher percentage of their income on goods than rich people did” (“The Income Tax Amendment: Most Thought It Was a Great Idea in 1913” 1).
Thus, an unpopular tax on a product that produces negative externalities, such as car use that creates environmental damage, may be avoided due to the fact that the government is afraid of losing support from the