Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Taxation Expert

Introduction

Taxation is more than applying and interpreting legislation. Societies require taxation in order to reallocate capital, to provide for expenditure on public services and goods. Taxation is a core area in which the broader fields of law and accounting, drawing together concepts from disciplines, along with concepts from economics. Knowledge and theories in a number of other disciplines, like sociology and psychology, have been used to support with a greater understanding of the impact of taxation on culture.

What is the most important significance of taxation?

The most important purpose of taxation is to produce funds/revenues used to settle expenses incurred by the government in promoting the common welfare of its citizenry. In mainly nations, specially our country, taxes are the major source of government's earnings. Others come from sale and borrowing of public lands and other government properties, interests on savings.

Objectives:

Tax is enduring instrument for collecting revenues. It is a most important source of income in the developed world and has been appearing as an important source of returns in the developing world. The main objectives of tax are as follows:

1. Increase More Revenue

The fundamental objective of taxation is to finance government outgoings. The government requires a range of development and welfare activities in the nation. It needs a vast amount of funds. The government collects funds by striking taxes. Raising more and more revenues has been an significant objective of tax.

2. Prevent Concentration Of Wealth In A Few Hands

Tax is imposed on individuals according to their revenue level. High earners are imposed on high tax through progressive tax scheme. This prevents wealth being concentrated in a few hands of the rich. Thus narrowing the gap among rich and poor is another objective of tax.

3. Redistribute Wealth for Common Good

 The tax collected by government is expended for carrying out a range of welfare actions. From this way, the wealth of the rich is redistributed to the whole society.

4. Boost up the Economy

Tax serves as an instrument for promoting economic stability, efficiency and growth. The government controls the economic activities of the state by providing diverse concessions, rebates and other services. An effective tax scheme can boost up the economy.

5. Reduce Unemployment

The government can decrease the unemployment problem in the state by promoting a range of employment generating activities. Industries recognized in distant parts or industries providing more employment are set more services.

What is the Basic Purpose of Taxation Accounting

The most important purpose of taxation is to build up funds for the functioning of the government machineries. There is no government in the world can run its administrative workplace without funds. The government can run its administrative set up through community funding which is collected in the type of tax. Thus, it can be well understood that the principle of taxation is very obvious and simple for proper functioning of a country. Taxes are charges levied beside a people's personal income or on property or for some specified movement.

Type of Tax Structures

Taxes can be discussed on a progressive basis, a regressive basis or proportional basis. These are discussed below-

Regressive Tax Structure:

A regressive tax structure grades in low-income persons paying a higher percentage of their earnings on taxes than high-income persons. This type of tax structure tends to shift the burden of taxation to the poor.

How a government defines income subject to an exacting tax schedule or rate is also essential. For example, the United States government treats earned income another way than investment income, and provides investment income a preferential tax rate. The government imposes a higher rate of tax on income earned through salary and wages than on income earned on investments.

Proportional Tax Structure

In a proportional tax structure, tax rate does not depend upon the relative income level of taxpayer. You can also think of a proportional tax rate as a 'flat tax.' The example of a flat tax in the United States is a sales tax. The poorest member of the society pays the equal sales tax on a television as richest. A proportional tax system theoretically should create an equal tax burden for all the taxpayers, but some dispute it doesn't.

Progressive Tax Structure

A progressive tax structure is just opposite of a regressive tax structure. In this type of progressive tax system, the taxpayers making more capital pay higher tax rates than those making less capital. The United States uses a progressive income tax structure. A progressive tax structure tends to shift the burden of taxation to the wealthy.

Find Proficient Support at the world's most-trusted stand:

Anybody who is trying to obtain rid of difficult issues of Taxation can typically think of not something else. Many Taxation Assignment Help forces like mywordsolution will advise you the secret to overcome your problems in developing the theory in an effective manner and are to pay them off by spending fewer and saving your money.

From mywordsolution assistance services you can acquire the merits of step-by-step learning process. It is very important for the students to be recognizable with the basic concepts devoid of confusion. These types of online support services have a experienced and qualified team who will aid you in finishing your homework within the deadline.

Accounting,Taxation


Recent Taxation Questions

Assigmn a letter to the board of directorsdecisions

Assigmn: A Letter to the Board of Directors Decisions involving capital expenditures often require managers to weight the costs and benefits of different options related to the same goal or project. For instance, decidin ...

Assignment constructive dividends redemptions and related

Assignment: Constructive Dividends, Redemptions, and Related Party Losses Suppose you are a CPA hired to represent a client that is currently under examination by the IRS. The client is the president and 95% shareholder ...

Write a response to these two posts only has to be about

Write a response to these two posts. Only has to be about 150 words each: Post1: A) As the CPA preparing the tax return in Situation A, I would have to rely on the information received by Tom. Unless I have prepared tax ...

Alice johnson social security number 222-23-3334 is a

Alice Johnson, Social Security number 222-23-3334, is a single taxpayer and is employed as a secretary by state University of FloridaShe has the following items pertaining to her income tax return for the current year: R ...

Accounting taxa1 organize an outline that lists the

Accounting TAX A 1. Organize an outline that lists the advantages and disadvantages of making a consolidated return election. Include at least five advantages and five disadvantages of making the election.?2. From a proc ...

Alternative minimum tax please resppond to the

"Alternative Minimum Tax" Please resppond to the following: • Analyze the rules concerning the alternative minimum tax for individual taxpayers. Based on your analysis, recommend at least two changes to the alternative m ...

Corporate taxation please respond to the

"Corporate Taxation" Please respond to the following: • Analyze the significant rules concerning the manner in which corporations treat the dividends that they are paying. Based on your analysis, recommend at least two c ...

Partnerships and tax-exempt organizations please respond to

"Partnerships and Tax-Exempt Organizations" Please respond to the following: • Imagine that your new client would like to form a partnership. The client has asked you to assist in avoiding transactions that might result ...

Issue questions1 cable corporation which operates a fleet

ISSUE QUESTIONS 1. Cable Corporation, which operates a fleet of motorized trolley cars in a resort city, is undergoing a complete liquidation. John, who owns 80% of the Cable stock, plans to continue the business in anot ...

Tax return-problem c corporationinstructionsplease complete

Tax return-problem: C corporation Instructions: Please complete the Express Catering, Inc.'s 2014 tax return based upon the information provided below. If required information is missing, use reasonable assumptions to fi ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro