Taxation Essay

Part 1: Question: Explain the understandings with examples from recent coherent time in the U.K why the U.K disposal activity taxes its citizens. in that location are mixed reasons why the United Kingdoms organization imposes taxes on its multitude. The first tax that was introduced to the UK was the Land (property tax). The government can workout taxes for various reasons such as an anti inflationary fraud in other to remedy the inflation, they would append the direct taxes without increase its expenditure (with the view that higher own(prenominal) income tax would inhibit a persons disposable income hence step-down the amount of cash in circulation which would enhance price stability) scarcely this does not lead often. Secondly another reason why the government of UK taxes its passel is beca function it serves as a source of receipts for the government to subvention up for government expenditure, the government uses the bills gotten for tax to be for public expenditure some of the receipts which they use for such expenditure can come from acceptance but a large amount of it comes in done taxation. other reason is that they use taxes to redistribute the income in the economy.

If thither were a large range surrounded by the sufficient and poor of an economy the government would increase the tax, which the rich overcompensate to funk the gap between the rich and the poor in the economy. The government also uses taxes to step in in the commercialize to correct market failure either by change magnitude or reducing the tax, and also firmly tax geologi c fault good like cigarettes and alcohol to ! reduce their use of goods and services in the economy. A key factor why the government imposes tax in the UK is to correct the balance of salary dearth by imposing taxes like tariffs quotas or an ban (total ban) on some goods to prevent dumping or sometimes phthisis and these taxes are usually placed on demerit goods. Another major reason why the government taxes its people is so they can manage the economy by adopting the use of financial policies either to increase...If you want to get a ample essay, govern it on our website: BestEssayCheap.com

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