Buoyancy And Elasticity: Determinants Of Local Tax System's Performance

2083 words - 8 pages

BUOYANCY AND ELASTICITY: DETERMINANTS OF
LOCAL TAX SYSTEM’S PERFORMANCE

Civil servants and priests, soldiers and ballet-dancers, schoolmasters and police constables, Greek museums and Gothic steeples, civil list and services list—the common seed within which all these fabulous beings slumber in embryo is taxation.

Karl Marx

Every citizen, whether young or old, wealthy or poor, property owners or property-less, pays taxes to help finance governmental functions. Every business pays taxes, which almost certainly enter into the prices the consumers pay. The wages of the workers are withheld for income taxes. No one can avoid paying taxes.

Taxes have always been the traditional sources of government revenues. Recourse to taxation to finance the operational costs of government has been availed of by rulers of all times and climes from antiquity down to the present. It is what the government uses for community development.

Taken in this light, therefore, taxes are not mere contributions of the people to their governments, but represent the peoples' investments for their own welfare and future. Despite this, however, and the compulsory nature of taxes, many delinquent taxpayers manage to evade or avoid the payment of their taxes in one way or another. Tax evasion has become a serious societal problem. Too many people fail to pay their rightful tax. As a consequence, the government incurs huge deficit, and its delivery of basic services is tremendously affected.

With R.A. 7160, otherwise known as the Local Government Code of 1991, providing greater degree of fiscal autonomy to local government units, a periodic evaluation of the performance of the prevailing local tax system from the perspective of resource mobilization is, therefore, an imperative task among local government units.

Estimation of Tax Buoyancy and Elasticity

An important point to consider in any tax system is the responsiveness of the tax revenue to changes in income. According to Mansfield (Majuca, 1998), this responsiveness is measured by the concepts of tax elasticity and tax buoyancy.

     Tax buoyancy is a ratio of the percentage change in tax revenue to the percentage change in aggregate income with the revenue changes inclusive of the increment in revenue brought about by discretionary factors. Modifications in the statutory rates and bases and extraordinary changes in the degree of administrative efficiency constitute discretionary tax measures. The growth in tax revenues (after adjustments are made for discretionary changes) reflects the growth attributable to changes in economic base and to trend changes in administrative efficiency. Thus, tax elasticity, which is based on revenue changes after adjusting for discretionary effect, is a measure of the responsiveness of tax revenues to automatic changes in economic activity and tax administration. Tax elasticity is the product of two components: (1) the base elasticity...

Find Another Essay On Buoyancy and Elasticity: Determinants of Local Tax System's Performance

Define And Explain Price Elasticity of Demand

1316 words - 5 pages : Percentage Change in Quantity Demanded Percentage Change in Price      One determinant of price elasticity is the number and closeness of substitutes there are available for a good. The closer the goods are, the greater will be the price elasticity of demand of that good. The reason for this being that people will be able to switch to the substitutes when the price of the original good goes up. The greater the number of substitutes and the closer

Obesity and Social Determinants of Health

1766 words - 7 pages Obesity and social determinants of health Overweight and obesity problem is becoming more and more serious in Australia. Not only Australians but also the world’s problem obesity is studied as one of the main causes of chronic diseases such as coronary heart disease, Type 2 diabetes, and some cancers and sleep apnoea as well as other serious conditions, which put national economies and individual lives at risk. Obesity is also regarded as

Social Determinants of Interpersonal Violence and Health

1910 words - 8 pages Ans-1 Social determinants of interpersonal violence Relatively high rates of violence have been reported over the years among members of certain ethnic and racial groups and urban inhabitants. African Americans and Native Americans have comparatively high rates of assaultive interpersonal violence and homicide. Big cities continue to experience high rates of violence, focussed mainly among young black males in the United States. Immigrant

LAND AND PROPERTY TAX ISSUE IN INDONESIA TRANSFERRING THE PROPERTY TAX AUTHORITY FROM CENTRAL TO LOCAL GOVERNMENT

3362 words - 13 pages in Indonesia: Measuring And Explaining Administrative (Under-) Performance. Journal of Public Administration and Development. Wiley InterScience Mikesell, J. 2011. Fiscal administration. Boston, Mass.: Wadsworth/Cencage Learning The Republic of Indonesia, 2009. Law Number 28/ 2009 on Local Government Tax and Fees The Republic of Indonesia, 1994. Law Number 12/2004 on Property Taxes The Republic of Indonesia, 2013. Financial Note and

Social Determinants of Health and Phenomenology to Practice

983 words - 4 pages The purpose of this paper is to thoroughly analyze a patient from a pathophysiological, social, and philosophical perspective. The World Heath Organization (WHO) social determinants of health will be applied to the patient data, emphasizing a phenomenological approach to analyze the determinant of physical environment. By understanding these various influences on a patient’s health status, we can provide a more holistic approach to health care

The Evolution of State and Local Government

2352 words - 9 pages states. State governments can abolish a local government, strip away or grant it more authority, or merge it with another entity (Buda, 2007). Colonial government needs were limited and colonists disliked taxes. When revenues were needed, depending on the region, there was a mixture of customs duties, property, and poll taxes. A tax on earnings was created in the mid-1600s. As goods and services became part of life license and excise taxes

Local and National Provision of Football

1348 words - 5 pages Local and National Provision of Football I have chosen the sport of Football to study in my local and national provision; the assignment consists of 6 sub-headings; · Grassroots development. · Provision for pathways/for elite performance. · Additional agencies and bodies. · Provision for male/female competitors. · Provision for disabled participant’s local/elite. · Critical analysis/evaluation

Performance management in the framework of public accountability in Estonian Local Governments

807 words - 4 pages information can be made between performance reporting as an accountability tool and performance management as a steering tool (Greiling 2006). Over two-thirds of OECD countries include non-financial performance information in their budget documents (Curristine et al 2007). According to Estonian legislation Local Governments in Estonia currently have to compile strategic plans, prepare the annual budgets in accordance with the strategic plans

Determinants of Conditional Volatility of Fifty Stock Returns and KSE 100 Index

894 words - 4 pages This academic research examines the determinants of conditional volatility of fifty stock returns and KSE 100 index for the time period of August 1998 to December 2008 and the impact of macro-economic volatility on stock volatility. The macro-economic variables included in the analysis are market return, industrial production, interbank call money rate, term structure of interest rate, money supply, exchange rate and inflation rate. In order to

Major Determinants of the Size and Nature of the Health Care Employment Sector

607 words - 2 pages Without attempting to include all of the interrelated factors that influence demand for various types of health personnel, it is important to recognize some major determinants of the size and nature of the health care employment sector (Sultz & Young, 2009). One of these determinants that cannot be overlooked is the projected decline in a physician population that has already been identified as inadequate in many areas to meet the needs of our

Determinants of Philippine Trade: A Regression Analysis of Trade and its Factors from 1980

1686 words - 7 pages Product will translate to increases in Trade since “one of the empirical determinants of bilateral trade between countries is the level of both countries” (Bayoumi,T. 1996). Moroever, increasing the output of a country, like the Philippines, may increase its level of output. Thus, rooting for a better and efficient Philippine trade, pegging influences of GDP growth, real exchange rate, and inflation should be analyzed whether they are

Similar Essays

Archimedes And The Principle Of Buoyancy

1787 words - 7 pages of Buoyancy (Famous). Archimedes went to Egypt for a small amount of time, and while there, he perfected and demonstrated the Archimedes Screw, and is still even used today (Ancient). Archimedes screw was mainly used to remove water from a large ship, and was used there for lowering the water out of the Nile and other rivers, similar to locks, as well as a tool for irrigation, and is still used for that use even to this day. Archimedes then

Elasticity Of Demand And Supply Essay

1718 words - 7 pages would be the difference in spending power and economy between Germany and Egypt. In Germany people will rather spend more than the people living in Egypt as the German economy is better, people are earning more and products are more suitable. While in Egypt the economy is in a recovery stage which led to that people are afraid to spend their money, lower living standards and lower spending power. Income elasticity of demand can be calculated

The Determinants Of Female Genital Mutilation In Sierra Leone: A Recommendation For Local Non Governmental Organizations

2956 words - 12 pages the South (figure 1).(UNHCR 2007)⁠⁠⁠ So far, most interventions have not been effective, probably because FGM is rooted deeply in culture and complex causes make it hard to intervene. The objective of this literature review is to analyze which determinants influence FGM in Sierra Leone in order to inform local Non Governmental Organizations (NGOs). This can help to implement effective interventions. 2. Methods

Price, Income And Cross Elasticity Of Demand

1482 words - 6 pages Explain what is meant by the terms price elasticity, income elasticity and cross elasticity of demand and discuss the main determinants of each of these. Discuss the importance of each of these to the decision making process within a typical business.Elasticity is the responsiveness to which one variable responds to a change in another variable Price elasticity of demand (PED) measures the responsiveness of quantity demanded of a product to a