subject: A Look At The Characteristics Of A Good Tax System [print this page] The truth of the matter is that a tax system that is to be implemented in any country must be one that fits into the social fabric of that society. It is extremely important to take note of the fact that for the tax system to be okay, the features of the system must be such that they are up-to-date. In this particular article, we are going to consider some of the features of a good tax system, and what one should be thinking when it comes to this.
The first thing that a good tax system must exhibit is a simple tax structure. This means that if a government wants to implement a tax system, it should make sure that it is in such a way as to make sure that the tax system is extremely simple. Unfortunately, so many tax regimes all over the world seem to ignore this principle without worrying about it at all. They set up tax regimes that are complex and which can easily confuse people who do not have a background in finance.
The next thing that any tax regime must take into consideration is to make sure that they have a tax collection process that is economical. This means that the costs of collecting taxes and paying them should be as low as it is possible. Governments must avoid scenarios where the taxes where the cost of collecting the taxes is so high to the extent that the agencies collecting the taxes do not see the essence of collecting small amounts of taxes. At the same time, the administration of paying the taxes (from the taxpayer's point of view,) should not be too much. This is because such a thing might end up discouraging people from paying the taxes.
The last and one of the most controversial things any tax regime must ensure it exhibits is none other than equitability It is extremely important to state that the taxation system should be seen as fair. It is usually agreed that people should pay their taxes depending on their ability. However, it has been greatly debated whether in achieving this tax regime should employ a progressive tax band or a propitiate tax band.
One thing that you need to keep in mind is the fact that the tax regime must be such that it is extremely convenient, not only to the people paying the taxes, but also to those who are collecting the taxes.
