Texition Example

Essays on Texition Essay TAXATION Project The rate of tax that I would charge would be the progressive tax rate where the higher income earners remit higher income percentages than the lower income earners. This is to sustain the economic contribution of the low income earners who pay little percentages (Hopkins 2012, p. 5). The benefit of this tax rate is that it encourages the submission of taxes by all brackets of income earners. This implies that the tax rate is not oppressive to the income earners. As a result, I would use a 9% tax rate that is affordable by all taxpayers and encourages personal saving. To ensure that there was compliance, I would introduce tax centers where taxpayers consult for advises on various issues. This is because some citizens would not understand why the rate introduced was lesser than the corporate tax charged (Hopkins Blazek 2010, p. 24). I would also impose strict regulations with heavy penalties for tax evaders who submit wrong returns or details. People will always try to evade their tax obligations by falsifying their income details or profit margins. The tax system adopted would also comply with professional principles of reliability, equity and objectivity (Hopkins Blazek 2010, p. 26). It is vital for a tax system to instill trust among the taxpayers to show that it supports government projects and improvement of social amenities. Tax collection would take place in different ways, such taxation at the source and personal-assessment or through deductions. Collecting tax at the source entails deducting money at the system before the earner is paid and might be through PAYE. It is the recommended method because it curbs tax evasion behaviors when taxpayers may conceal their incomes or gains. The personal-assessment method is another favorable source that compels self-employed persons to fill in the tax returns (Hopkins 2012, p. 9). The method also ensures that property owners remit their deductions after the correct calculations of the tax returns. The taxpayers have the right to use the method endorsed by the tax authorities. A tax exemption is a concept that decreases the taxable income of an individual or a company. I would apply this strategy on charitable agencies by allowing them a tax exemption from property and income charges (Hopkins 2011, p. 759). The exemption would also be offered to military organizations, veterans and NGOs. The exemption would be given to the charitable agencies to enable them offer humanitarian assistances to citizens and other underprivileged individuals. The advantage of allowing tax exemptions is to encourage foreign in some sectors of the economy, such as education, industrial production and high risk ventures (Hopkins 2011, p. 759). Veterans and NGOs are vital for this benefit because they support human existence and safety against attacks from enemies and other vices like diseases or abuses. I would expect to collect tax revenue of around half the country’s total earnings depending with the GDP. This is because tax revenues should not exceed the earnings from the country’s economic activities. I would use the money to create more job opportunities for the local citizens in other sectors apart from the oil industry. I would also use the money to develop educational facilities to avoid foreign workers crowding the job market in the country. Bibliography Hopkins, B. R. (2011). The law of tax-exempt organizations. Hoboken, NJ, J. Wiley. Print. Hopkins, B. R., Blazek, J. (2010). Private foundations: tax law and compliance 2011 Cumulative supplement. Hoboken, N.J., Wiley. Hopkins, B. R. (2012). The law of tax-exempt organizations: 10th edition cumulative Supplement. Hoboken, N.J., Wiley.