Government does not exist to deliver certain outcomes. —. Governments at all levels (national, regional and local) need to raise revenue from a variety of sources to finance public-sector expenditures. C. Yes, because the power of taxation is an inherent power of a sovereign State and it is based on the lifeblood doctrine and necessity theory. Some of these are what we could term as “Opportunity taxes” – government revenue recovered to pay for business programs which enable economic development through the provision of trained labour resources, logistics capabilities, etc. why some citizens has a hostile reaction towards taxation? persons, property, or the exercise of a right or privilege (Excise tax). Tax is the revenue side of how governments pay for their existence. 2. certain effects or conditions envisioned by the government may be When is taxation considered as an implement of police power? certain administrative officers should never be allowed to jeopardize the Australia (5) sits somewhere between the two, with a moderately progressive tax system and a balance of private and public expenditure on social services. Thus roads, hospitals, schools, logistics systems, telecommunications, energy generation and so forth become the responsibility of governments in most liberal and social democracies. the law-making body of the State. It’s that simple. A more nearly neutral tax system would result in less distortion. are based on one’s ability to pay. authority of the court sitting in probate over the supposed will of the Taxes are proportional in character, since taxes History has taught us that having governments construct key social and economic infrastructure provides economies of scale that are impossible to achieve when individuals are forced to pay for the same services out of their own pockets. Adam Smith in The Wealth of Nations (1776) wrote: taxation should be exercised with caution to minimize injury to the proprietary Ideally, economic principles such as comparative advantage, relative scarcity, economies of scale, demand and supply and their related terms - equilibrium, elasticity and plasticity – deliver optimisable models which can be used to ensure that everyone who needs to have their hierarchy of needs met can do so with minimal cost. The Necessity of Taxation. It is levied by effects its functions fro the welfare of its constituents. – The government cannot continue without a means to pay its expenses. The author’s allegation that the role of government is to deliver satisfaction of Maslow’s Hierarchy of Needs is rendered impossible by the conditions she establishes. ... the theory being that they spend more on products and services than those who already spend all they earn. A tax is a compulsory payment made by individuals and companies to the govern­ment on the basis of certain well-established rules or criteria such as income earned, property owned, capital gains made or expenditure incurred (money spent) on domestic and imported articles. As demand for these resources grows, it is typically the role of governments to ensure that their demand is met and that the cost of delivery is equitable. That sense of worth then feeds into the healthy ego required to drive the investment of effort in the final need, Self-actualisation – “being all we can be.”. by the government, but upon the necessity of money for the support of the funds for the construction and maintenance of highways and, to a much lesser A valid tax may Fundamentally, this is unequal. —. The United States of America (4) currently has relatively low income tax margins, which conversely delivers very low levels of public utility – assuming one doesn’t include its military spending in that way. Taxation draws down the resources available to the individual, making it harder, not easier, for them to attain the most basic of those needs listed by Maslow. may provide tax incentives to protect and promote new and pioneer law-making body of the State by virtue of its sovereignty for the support not only a regulatory but also a revenue measure prompted by the realizations 5. 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Examples of consumption taxes is a user tax imposed on retailers for every video they make available for public.!

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