Should Australia Introduce Any Tax Or Gst Changes? :: essays research papers

Why do we need measurees?Taxation makes up majority of our goernments income. With this income the government can provide us with proper radix and mixer services for little, if no cost at all. These include Medic be, social security and education. (These facilities are known as recurrent expenditures because it is needed while after time.) Other expenditures include transportation, lighting, recreation etc. These services are granted to us at no costs. In many third world countries where levy income is low or doesnt exist, all of these services are to come out of ones own pocket. Over the many centuries, in which tax revenueation was existent, people have cheated and avoided paying these taxes. Nowadays people with high-income put their silver into trusts, superannuation, or incorporate it into businesses. Businesses would try and receive more cash transactions. This has light-emitting diode to a decrease in our governments revenues, thus leading to a tax reform in hope of a more effective result. What makes a good tax system?There are four elements in a successful tax system. They are effectiveness, efficiency, equitability, and simplicity. 1) Effectiveness is the performance compared to the desired effect. E.g. the number of people who pays tax, how much tax is received.2) Efficiency is the cost of ladder the system. The system may be very effective with a one thousand thousand tax officers, but it would cost millions to hire so many people. 3) Equitability is the integrity of the system. This is an impossible goal to achieve. From different peoples point of views, the system will invariably be unfair to them in some way. Not to mention the tax cheats. The best solution is to broaden the number of people who pay the tax, which is only if fair. 4) Simplicity A tax system should never be similarly complexed, it is otherwise not efficient neither belowstandable. The income tax Act that retributory started off at just 120 pages in 1936 is now o ver 3300 pages and has doubled in size over the last 7 years. A complex system means that those who can afford expensive tax advice minimize their tax. But those that cant, pay the full share. It is impossible to have a system where all four elements are satisfactory. Where a system may be effective and efficient it will not be honorable or simple. It is impossible to fit the whole population all under one roof. Under these circumstances the government proposed a new way of taxation- GST.