Taxation Coursework Example | Topics and Well Written Essays - 2500 words

Taxation - Coursework ExampleThere are many reasons why taxation is practiced by the government in any country. One of the main reasons is to pay expenditures for the government. The expenditures includes, nonrecreational for the public expenditures that happen in the daily life like cleaning the environment and maintenance of the cities. entirely this is managed by the government and catered for by the revenues the citizens are taxed. The country may lack enough revenues and decide to suck in which is not a secure act. It is good for the country to maintain its economy by using more than of the taxation money for such expenses in order to avoid dangers like inflation. By doing so, the public goods produced in the country and the merits can be well be provided from the taxation fee than borrowing the fee from outback(a) country which may affect the country very heavily. The current UK budget can clearly turn out how the taxation is utilized by introducing austerity measures whi ch raise the VAT and cut the costs of the public services. Recently, billions of hard currency was cut from the budget of the novel coalition government of the UK. All the departments except the health and oversee maintenance cut their spending to over 25 percent where by it created a chance of making 750, 000 new jobs (Finney 2005). This looks because the government has created new job opportunities in the country. Another reason for taxation is for the government to correct the securities industry failure. The government has the right to intervene into the individual markets in the country to govern them and correct them by ponderous or raising their taxes. This is majorly to increase or decrease the demand of the goods and services. The demand of demerits goods such as rear end can be reduced by increasing its taxes. This is for the better of the country by discouraging the citizens not to be taking the cigarettes and polluting the environment. On the other hand, products l ike books and educational goods can be exempted from raising the taxes and