Taxation is an inseparable part of the economy. As the economy requires some sort of funding to begin with and taxation fulfils that certain requirement. Students who are pursuing a degree in economics need to understand the utmost role the taxation system plays in the economy. To further increase the value of the subject, colleges and universities around the world ask economic students to write an academic essay on taxation and economics. Although it is necessary to understand the value taxation system held in a particular economy, students often find it difficult to write and submit a quality assignment on the subject. During such a time, they seek guidance from experts who will help them write an impressive assignment on economics. BookMYEssay is the one stop shop for students who are facing several difficulties while writing on the topic. The website allows students to hire top-notch assignment writing solutions anytime around the clock.
Role of taxation in the economic essay
The taxation can be defined as the necessary contribution to the state revenue levied by the government on personal income and business profit. The taxation can be categorised into two parts known as:
Revenue tax: It refers to a tax on the income, inherited property or sales.
Corrective tax: This type of tax has a specific purpose as discouraging or promoting certain activities or behaviour.
The taxation in the economic system
There is no doubt that taxation plays a significant role in the modern economy but do you actually know how to use it? Well here are some fundamental ways in which government can actually implement taxation in the modern economy:
• Revenue generation: Taxation is used as a method to generate revenue for government operations like welfare, defence, infrastructure and education.
• Reduce inequality: The taxation can be used to serve the weak with the purpose of encouraging social equality.
• Resource Redistribution: Taxation can be used to transfer the specific type of resources from one category to another
• Behaviour Discouragement: Taxation is like social engineering to discourage people from performing antisocial behaviour.
• Protecting and promoting local industry: Government use the revenue to protect and promote the local industry.
The current taxation system in New Zealand
The taxation system differs from one country to another. Same goes for the narrow tax base while others implement the broad tax base. New Zealand has adopted the broad-base-low approach in its taxation policy. This approach actually took place in the 1980s where the goods and services tax (GST) was introduced. This reduced the dependence of the New Zealand government on the growing inhabiting form of tax such as heavily exporting goods and services.
Taxation policy plays a crucial role in developing a functional policy that will help the economy to further grow. At the end students can no doubt acquire taxation assignment help or directly buy assignment from the BookMyEssay.
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