Solution 2 - Different Rates of Tax

Author: Bob
Updated Date 07/04/2016 22:17:42
Number of views: 409

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In some countries people pay different rates of tax depending on their salary, in other countries everyone pays the same rate. Which do you believe is the best system?

Solution 1

Solution 2

swaroop557 - 07/04/2016 22:17:42

In our daily life,we pay tax to government on various goods we buy in market, which is important source of income for government.already we know there are various types of tax system in world few countries follow equal payment of tax for all people other different rates of tax.

Lets compare both tax systems in first one equal payment method our society has various types of people who does different types of jobs some jobs has high pay some low other medium payment if all this section people pay only same tax then we can clearly state that government will lose money from the people who have high salary this effects the income and economy also but in the another method of tax system high salary or people who earn high income should pay more tax compared to the people who earn less money in daily lives through this it increases income of government.

Now we can discuss overview of advantages and disadvantages of both tax systems they are in equal tax method people who earn less money would pay high tax,government will lose huge amount of money from people who earn high money and as all pay same tax its easy to calculate revenue that is earned by government through tax that means only few working staff is required in government tax department on other hand in different tax system more income for government and it requires additional working staff for calculating overall amount of tax.

From the above discussion I support that all countries should make their tax depending on salary of people so it increases revenue of government which is indeed useful for development of country.