The Economic Development Theory
The economic development theory was established in the middle of the last century. The discussion was wide, from the very concept of development to its determinants. Some argued that development was a cumulative process of changing the economic structure (Stansel, 2011). Others conceived it as an evolution or progress, some assimilated to economic growth and more about what equated to industrialisation. This literature review focuses on different aspects like financing, the labour market, and taxes, the political and economic dependence. In particular, sufficient inflows and private savings ensured the first capital formation.
The researchers found that the strategy was a combination of emission and external debt, inflation accelerated and
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According to House of Commons (2011), there are two tax principles, namely basic principles and procedural principle. Basic principle consists of fairness of taxation and its effects on economic performance. While the procedural principles can be described as certainty, stability and practicability. Waidyasekera, (2007) stated that the basic principles of a tax system are equity, progressivity, simplicity, and efficiency. Tax system has various principles that have traditionally guided its development as presented by the two writers above, besides ACCA (2015) mentioned that there are three principles that strengthens and solidifies a good tax system, they include Simplicity, Certainty and Stability. They overlap and are interdependent, if there is any deficiency in any one of them, there will be a resultant negative impact on the tax system (Wambai, and Hanga, 2013). The wide tax policy understanding that has supported the growth of tax systems are as mentioned …show more content…
This choice is a fundamental challenge for economic policy because these taxes have a major economic and social impact. Tax policy is indeed a powerful policy lever through the establishment of incentive mechanisms and income redistribution. One of the main tools of fiscal policy is taxation. Lymer and Oats, (2007) defined the tax as a monetary payment imposed on natural or legal persons by authority, to final and binding, without any counterpart. This perception of unrequited tax constitutes the essential feature of the tax. This means that the payment does not open direct access to a service or a particular law (Lymer and Oats, 2007). Certainly, there is a counterpart to the tax, which is the existence of public services, but it is not individualized under the budgetary principle of universality that revenue should not be allocated to a particular
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