Principles That Taxation Agencies Need To Aim For

In the modern times, anything that seems not to be working always attracts the wrath of the citizens of the particular country

. All over the world, one of the systems that are always under the scrutiny of the public, professionals, and politicians is the taxation system. The way a government collects revenues, the strategies it employs, and the systems it must put in place are all things that must conform to both the written and unwritten laws of the country.

However, sometimes forces may arise with the aim of changing the tax system, but fail to achieve what a progressive economy should. Here are three things that every tax reform plan must achieve if the economy is to progress:

Achieve Equity

A good tax system must aim to achieve equity in the sense that people must pay taxes according to their ability to do so. Although many people agree to the fact that tax systems must aim for equity, not so many people agree on what an equitable tax system should be. However, judging from what we can see with many countries, implementing progressive taxes has come out as the best way to achieve equity. A progressive tax system is one in which a person who has a higher source of income is made to pay a bigger percentage of his income compared to someone who has less income. On the other hand, a proportional tax system is whereby all the tax payers pay the same percentage of their income as tax.

A Good Tax system Must Be Economical

The process of collection of taxes is a business in itself. There is the cost factor and there is the income factor. When making reforms in a taxation system, it is important to ensure that the costs that the government and the tax-payers will incur must be less than the revenue that will be collected from them. This must be done in such a way as to minimize the cost of collecting taxes.

by: David de Souza

POST COMMENT

How You Can Find Antique Bottles in Panama Spice Up Your Living Room! Lg Optimus Gt540 Makes Life Joyful With Great Skills Surviving an Affair Natural Skin Tightening Dad - I know now - Dedicated to Uday Shankar Sharma Three Asian Alcohol Allergy Facts You Need To Know Recovering Antique Bottles Safely in the Jungle Harvesting Rainwater in Prescott Arizona Visit With Precious Ramotswe to Share "Tea Time For the Traditionally Built" Concrete Cleaning Refugio de escritores desconhecidos The First Steps To Being Successful