Explaining The Primary Purpose Of Taxation Economics Essay

Explaining The Primary Purpose Of Taxation Economics Essay Tax is an enforced  fee  that is charged on individuals and organizations  by government  or its agency on a  product,  income, or  service. Despite many people complaining of making tax contributions to government, these contributions are very important for the economy of a country. This is because these financial contributions are used by government for the implementation of various socio-economic development projects such as the construction of roads and bridges, schools, health facilities and provision of social services like national security, provision of salaries for civil servants including the police, the army, judges, doctors, nurses and teachers. However, to clearly understand the rationale behind government charging of taxes terms such as taxation, equity in relation to taxation, direct and indirect tax and sources of income, need to be clearly understood. Taxation mainly refers to the  actual act in which government or its taxing authority (Such as Malawi Revenue Authority) actually  collects tax from individuals and organizations. In Malawi, taxation is guided by several principles that are mostly highlighted in the Taxation Act and Amendments. The taxation principles emphasize that taxes collected should be just-enough to generate revenue  required  for  provision  of essential  public services, and that taxes must be  spread  over as wide as possible  section  of the  population, or  sectors  of  economy. Furthermore, taxes are enforced in a manner that facilitates  voluntary compliance  from individuals and organizations to the maximum extent possible, but also taxes must equally burden all  individuals  or  entities  in similar economic circumstances. Adding to this, taxes do not favor any one  group  or sector over another. Equity in relation to taxation is another important element that needs to be clear understood as far as taxation is concerned. The word equity centers on the fairness and justness of collecting taxes by government. Equity in relation to taxation implies giving as much  advantage and  consideration to one  individual or organization  as it is given to another in similar economic conditions. This is a principle that taxes should be fair and should be based on different peoples ability to pay, and is usually related to their income. Practically, it is expected that an individual that earns more income has to pay more than an individual earning a comparable lower income. Taxes are divided into two main groups of Direct taxes and indirect taxes. On one hand, the direct taxes can be said to be those paid directly to the government by the individuals or organizations on whom it is being imposed. Examples of direct taxes charged by the Malawi Revenue Authority include income taxes, such Pay As You Earn (PAYE), and as the name implies, is a tax on Income. Income, according to MRA includes the total amount in cash or kind received by or accrued to a person from sources within Malawi, or deemed to be within Malawi. Another form of direct tax is tax based on wealth and this is based on the wealth of an individual at the date of death and is sometimes called Estate Duty. On the other hand, Indirect tax, also referred to as goods and services tax, is a tax collected by an intermediary, such as a retail store from a person who bears the ultimate economic burden of the tax (such as the customer). Indirect taxes are computed in the cost of goods or services an in dividual or organization purchases. In Malawi an example of indirect tax is sales tax, which is a duty paid based on the value of goods or services that have been purchased. Sales tax in Malawi is known as Value Added Tax (VAT). Customs duty is another form of indirect duties and is tax levied on the value of goods that have been imported into the country. Excise duty is also a form of indirect tax and these are imposed on selected locally manufactured goods to discourage the consumption of such goods. There are a various number of income sources that are taxable from income an individual or organization earns, which is generally net income from employment, business and rentals. There are many sources of income but the most common are salary and wages, which is the kind of income that the majority of people have to deal with when filing their taxes and is what individuals earn from a job. Another source is self-employment income, which is any money that an individual makes outside a regular job from services rendered. For example, if an individual operates a home-based business, money from this endeavor would be counted as self-employment income. Another type of income that one may receive is interest income, and is the income one receives from putting money into a savings account. QUESTION TWO Explaining the Primary Purpose of Taxation Taxation is a means by which governments finance their expenditure by imposing charges on citizens and corporate entities. The main purpose of taxation is to accumulate funds for the functioning of the government machineries. All governments in the world cannot run its administrative office without funds and it has no such system incorporated in itself to generate profit from its functioning.  In other words, a government can run its administrative set up only through public funding which is collected in the form of tax. Therefore, it can be well understood that the purpose of taxation is very simple and obvious for proper functioning of a state. Taxes are charges levied against a citizens personal income or on property or for some specified activity. As such, one purpose of taxation is to increase in effectiveness and productivity of the nation as government is able to implement various socio-economic development projects such as the construction of roads and bridges, schools, hea lth facilities and provision of social services. Another reason is that taxation assists in reducing consumption of unwanted goods. Taxes as such can be used as an effective tool to reduce the consumption of unwanted goods like alcohol. Higher taxes on such goods reduce the consumption as the price of the product will be very high for the consumers. Government also uses taxes as a way to protect local industries and as such make them more profitable. Increasing tariffs on imports and charging lower taxes to local products may boost the demand for goods and services produced by domestic industry. Taxes on imports, which are called tariffs, can be used by government to correct an unfavorable balance of payment situation by increasing the tariffs. This will result in imports becoming expensive and will cause a fall in demand for the imported goods. Explaining Five Reasons that Contribute to Non Compliance with Tax Laws Non compliance of tax laws  can be said to be a failure, intentional or unintentional, of taxpayers to meet their tax obligations. This lack of compliance can be as a result of different factors as indicated below: A Rising or High Tax Burden: Individuals and organizations will tend to be non compliant to tax laws when the taxes are deemed to be high as compared with the cost of living. In such a case taxpayers will tend to avoid payment of taxes so as to have a sizeable amount of money to be used in the purchase of different commodities. Lack of Knowledge on Tax Laws: This point focuses on the unintentional failure of a taxpayer to comply to tax laws. An example would be a small or medium enterprise that does not know that it is required by law for their businesses to be registered and as such pay taxes. Further, taxpayers would like the actual location or requirements needed for them to comply. Complexity of Tax Laws: Unintentional non-compliance may also be caused by the complexity of tax laws, that is by the difficulty of keeping accurate records and the inability to obtain the information needed to comply. For example, low-income taxpayers who cannot afford to employ tax agents could face problems understanding basic laws and even routine mathematical operations and interpreting the tax tables may present problems. Tax Evasion: Tax evasion is the failure to declare taxable activity or income and this is a practice in the employment of the services such as consultancies, builders, plumbers and decorators. This intentional non-compliance requires the taxpayer to have some measure of understanding of the tax system. Weak Tax System: This can also lead to intentional non compliance of tax laws as taxpayers are able to utilize loopholes in the tax system. As such, this encourages taxpayers to be non compliant as they are assured of not facing prosecution.

Doomsday Speech Essay

Military virologist Robert Neville id the last health human in New York City, a genetically-engineered variant of the measles virus that is meant as a cure for cancer had mutated in a lethal strain, it spread throughout the world killing 90% of humanity. The survivors became predatory beings refereed to as the â€Å"dark seekers† and killed those immune to the virus. Ever heard or seen that from somewhere? The movie I AM LEGENED is one of the thousand of movies linked to the conspiracy of doomsday. Ever thought the world would ever come to an end? Today†¦? Tomorrow†¦? Maybe in 2 minutes†¦? Are you anxious that we may be at the eve of the end of the world as we may know it? Do you believe doomsday is a hoax, created to exploit the gullible masses, or do you truly believe we are on the brink of the exterminations of the human race and the end of the world? It is the purpose of this paper to attempt to prove that doomsday is a myth that has created a fascination with destruction of the world that is being promoted by scamming artist after money and fame. People love to make things up, to sound important and to feel in control which is why 2012 is the year on everybody’s lips. There have been many variations of what will happen when the world does end. The sun will dry out, magnetic poles will shift, planet X will nock earth of it axis, planetary collision, and apparently black holes will appear. It is said this will all happen on December 21st, 2012 at 11:11 am universal time. Despite the fact that all theses predications will lead to the end of the world, i do not agree and therefore the public have been sucked into this lie. NASA states that there have been many doomsday predictions that NEVER happened. There are actually 242 dates up to now. Some of those dates were many days in 1843 and 1844, March 10th 1382, June 6th 2008, also every year on January 1st but look, were still here. Will the world end just like the calendar? Most of you have probably heard about the Mayen calendar or prophecy. The Mayens were astronomers that watched the skies and predicted earthquakes, volcanic eruptions, and solar eclipses. They uses past research o determine future events. They Mayens forecasted in to the future so far and the calendar stopped on December 21ss. 2012. But if you really think about it, calendars keep track of the passage of time, they don’t predict the future. The calendar has to end somewhere not only does it end; it begins a new cycle. The Mayen prophecy is just another hoax propagated by the internet, TVs, documentaries, movies and music. The most famous prophet was Nostradamus. Nostradamus predicted a great comet â€Å"Nirbu† AKA â€Å"Planet X† would impact the Mediterranean on December 21, 2012 causing great destruction worldwide. But NASA states that Nostradamus and the Sumerians knew very little astronomy and most certainly didn’t know of the existence of Uranus, Pluto, and Neptune. So, discovering a twelfth body in the solar system is well off. Nostradamus just wrote his writings to make a quick buck. In Mathew 24:36; its states, â€Å"However know one knows the day or hours these things may happen, not even the angles in heaven or the son himself, but the father alone.† Writings are unintelligible things that are vague and the faiths of millions of believers in Nostradamus are still intact as they follow his path to hell. A lot of people think that the world will fall into a perfect alignment on Doomsday. According to NASA, there are no planetary alignments in the next few decades. Scientists believe that the next planetary alignment will occur on 2854. One calculation of alignments within around thirty degrees shows that the last such alignment was in 561 BC. The earth and sun do align with the approximate center of the Milky Way Galaxy, but that has never created any effects on the earth and neither will it on 2012. 2012 is just going to be another year that we will live through. But however, people have been taken this too far even with proof given. During September 2008, a young woman in India became traumatized and depressed after watching well make but over hyped reports about the Large Hadron Collider. She believed these shows when they stated that the Large Hadron Colliderwill cause a miniature big bang or create a black hole and destroy the world. Terrified of these accusations she decided to take her own life. Don’t let the media fool you. Our lives didn’t end 2008†¦ But hers did.

How Lobbying Is A Negative Connotation On Everyday Language

As several authors this week contend, lobbying tends to carry a negative connotation in everyday language. The key issues that the authors seek to address this week, are when lobbying occurs, the nature of lobbying, and how it works. Overall, there is some agreement on the fact that lobbying is prevalent, the disagreements arise over what purpose lobbying serves, and what the strategies underlying lobbying are. One key debate among the authors is what is actually influenced by lawmaking. On one hand, Hansen (1991) takes the perspective that lobbying influences the relationship between interest groups and lawmakers. Hansen bases his argument on the belief that because legislators want to be reelected and they lack information about the â€Å"issue preferences of their constituents, the salience of issues to their constituents, and the effectiveness of various policy options,† they will seek information to reduce this uncertainty. 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Metamorphosis And Dantes Inferno Comparison - 872 Words

In The Metamorphosis you have a man who turns into a bug and in Dante’s Inferno you have a man sending people to nine different levels of hell, but someway they relate to each other in many ways. Sympathy is what makes these two books so similar. The author makes the reader feel sympathy for the character but the author himself has no sympathy for the character. The Metamorphosis and Dantes Inferno have the author developing the story so the characters have sympathy towards each other but the author has no sympathy towards the characters. First lets show how this happened in The Metamorphosis. The lack of sympathy the author had for Gregor was amazing. He went through a change in his life that no one thought would be possible. He went†¦show more content†¦He is now classified as a bug in an empty room. In Dantes Inferno as the reader we can see that the author the author has no sympathy towards either of the characters similar to how the author from The Metamorphosis had no sympathy for Gregor. Throughout the whole story the author is showing how two people who have fallen in love with each other were sent to hell as a single person. This is shown in the book when dante says â€Å"Love led us to one death.† Everyone knows that this is not possible but it is showing how neither of them are their own person because they based their lives on one another. When the author did this he showed how much he didnt care. He had no sympathy for those characters at all. Once the characters were in hell they were stripped of their identities and had no more loe for each other. To add on to these lovers being in hell they have not committed a sin to be there. That is another reason that the reader can think of why the author is so unsympathetic towards the characters. Before we saw how the author viewed the two charactersShow MoreRelatedThe Forest, The Silence Of God From A Spring Essay1792 Words   |  8 PagesI Drank the Silence of God from a Spring in the Woods: Examining the Variance of Religious Metamorphosis as a Journey through the Forest Following the myriad of idyllic forest pathways, the wandering souls of many well-known works of literature have presented the forest as a place of spiritual growth, yet also as a home for dangerous and malicious beings. While the trails in the woods that these characters take may lead them to their destination, it is often seen that these individuals come acrossRead More Snakes of Time in Dantes Hell Essay1314 Words   |  6 Pages3:13). Snakes have been a universal symbol of fraud in literature since â€Å"The Fall,† when God transformed Satan into a beguiling snake and â€Å"[c]ursed† Satan to slide â€Å"on [his] belly† for all eternity for his deception (Alter 41). Dante uses snakes in his epic poem, the Inferno, to tie the fraudulent nature of thieves to their punishment in the seventh bolgia of the eighth circle of Hell. Snakes have metaphorically slithered through time and shed, taking on new appearances as deceivers in society. InRead More Ode To The West Wind Essay1549 Words   |  7 Pagesrelated in amp;#8216;Ode to a West Windamp;#8217;. Shelleyamp;#8217;s adaptation of Danteamp;#8217;s work is evident throughout most of his writing. In amp;#8216;Ode to the West Windamp;#8217; it is quite apparent. He was writing this poem in a wood on the outskirts of Arno, near Florence, which is Danteamp;#8217;s hometown. The use of the terza rima poem is Shelleyamp;#8217;s most obvious adaptation of Dante and he relies upon Dantesque ideas to write his poetry. The image of the leaves being