This website uses cookies to ensure you have the best experience. Learn more

Tax Incentives Essay

947 words - 4 pages

This research will determine the effectiveness of putting incentives on tax policies in the level of tax collection of Baguio city. Its efficiency will be evaluated through the use of cost-benefit analysis, which will weigh the level of costs and benefits for the possibility of a profit for the community. As the increase in tax revenues reveal the activeness in political and economic activities of the people, it also serves as a driver in development and growth. While most of the city’s revenues come from business establishments, economic enterprises and real property according to the city Treasurer, it is intriguing how the city manages to reach their target tax collection and continue to ...view middle of the document...

Ahmad and Stein would also say that policy evaluation is necessary to weigh in the gains and losses; setting their levels will leads to efficiency and will likely benefit both the public and government institutions.
This research is somewhat aligned with the ideas of the paper “Promoting Growth in the Carribean: Tax Incentives in theory and in practice”, which gives an analysis on the factors that are required to achieve growth. The use of tax incentives in tax policies in developing countries has become more evident in the pursuit of the involvement of labor force and adjusting to the capacity of the public. Its arguments that incentives in taxes will lead to capital formation; together with the innovation in technology compose the main building blocks of growth. This paper discusses the ideal structure of a tax incentive, because according to Bes et al (2013) (as cited in Zee et al, 2002 and Artana et al, 2012), poorly designed tax incentives are likely to result in abuse of the system and will lead to more problems which will reflect badly in the economy. It then suggest that establishing tax incentives policy will require a well designed tax system that will increase tax revenue collection that will be use for government spending and should also cover compensating the costs in implementing those policies.

According to an article written in the Inquirer.net by Michelle Remo, the problem with our country is that our tax system is not ideal and it is supported by John Nye, a professor of economics at George Mason University. According to him the different tax rates on different income levels applied on different institutions discourage the people to advancement and modernization, in order to avoid higher taxes. Launching this kind of system will increase the overall collection of taxes according to him; it is also justifiable to question the certain...

Find Another Essay On Tax Incentives

Double Taxation Relief Essay

3628 words - 15 pages have extended their foreign tax mechanism to comprehend "tax sparing" or "tax holidays" in negotiating their treaties. A "tax sparing" credit is a credit granted by the country of residence agreeing to "honour" the tax incentives offered by the country of source as an encouragement to invest or conduct business in the country. The type of income incentives and income, to which such tax sparing provision apply, are defined very narrowly in any

The Roles of the National Budget

657 words - 3 pages corporate income taxes, including investment incentives, on a routine basis to enhance their transparency, and conduct periodic evaluations of all of them. (Arnold, 2012) Tax expenditures in Indonesia have been included in revised budget since 2003 that categorizing as tax subsidy (IMF ROSCs, 2006). Furthermore, I found same scheme of tax expenditures as tax subsidy from national budget of Indonesia in 2013. However, tax subsidy is categorized as

Flat taxes in developing and developed nations

2077 words - 9 pages stated before; tax revenue builds the most important funding source besides debt for governments. The Laffer curve describes the effects of changes in the tax system in two ways, the arithmetic and economic effect. Every decrease in the tax rate decreases the total tax revenue; this follows the idea of the arithmetic effect. This effect occurs vice versa. The economic effect instead takes the changes of incentives in employment, work or output into

Dividend Tax

1576 words - 6 pages A dividend tax is an income tax paid on the earnings from a corporation that is distributed to its shareholders. Dividend payments are treated as ordinary income, and they are taxed as if the taxpayer had earned income through active work. Presently, there is much controversy surrounding the tax. The government taxes dividends twice: It first taxes corporate income, then taxes the same income again when shareholders receive dividends paid out

U.S. and Swedish Trends in Tax Reform

1027 words - 4 pages Tax reform has become a major governmental policy issue in the United States as well as in the rest of the world. Countries are attempting to balance both economic efficiency and provide equity in taxation. Governments are looking to rewrite tax codes to minimize their impact on economic growth. Specifically, governments throughout the world are attempting to preserve incentives built into taxation to maximize economic efficiency. At the same

Tax Reform

1640 words - 7 pages Minister Jun Azumi wants to carry out a corporate tax cut as proposed by the government earlier and give incentives for Japanese firms to keep operating in the country despite the recent sharp rise of the yen. Since the proposal to lower Japan’s corporate tax rate in late 2010 unemployment has decreased from 5.1% to 4.1%, proving that corporations will higher more if taxes are lower. (Tabuchi) The US tax rate on corporations is so large, that

We Must Use Incentives to Encourage Environmentally Friendly Behavior

1215 words - 5 pages likely continue to help the environment in the future. Works Cited Cocke, Sophie. "Consumers Could Be Charged for Plastic and Paper Bags." Honolulu Civil Beat. N.p., 26 Jan. 2012. Web. 9 Mar. 2014. "Go Green & Get Green: Tax Rebates and Incentives for Green Home Improvements."Redfin Real Estate Blog. Web. 10 Mar. 2014. Grant, Kelli B. "Incentives to Go 'Green'" The Wall Street Journal. Dow Jones & Company, 15 Jan. 2006. Web. 10 Mar

Tax Evasion or Tax Avoidance: Is Starbucks` Tax planning and Practice Setting a Bad Precedent?

1949 words - 8 pages taxing country. 2.4. International Profit Shifting Schemes Here are some of the tax planning techniques used by large and complex enterprises • Allocation of profits or income offshore; (e.g. profits shifted to lower tax rate countries) • Expenses allocated onshore; (this increases deductions in the home country and lowers profits and lowers the tax payable) • Countries offering Tax Holidays, incentives or low tax rates • Re-invoicing

Tax as a Means of Control and Stimulator of the Economy in the Uk. Is it a Good Idea to Fluctuate the Tax Rates for Stabilizing the Economy? Is Tax Necessary for a Country’s Growth? Is Green Tax ...

9199 words - 37 pages could mean the government services going down as a result, the country's growth might be in threat.2.4: Effects of Green Tax Policy:The Green Tax or Ecotax which is a short form for ecological taxation is a policy that introduces taxes to promote ecologically sustainable activities through economic incentives. To be more straight forward, the green tax policy is a package of the government to promote or motivate people for using ecologically

Texas, Utah and Tennessee Tax Systems

1327 words - 6 pages taxes, it seems as property tax in Tennessee, is more favorable for its citizens comparing to Texas, even the Utah offer more incentives to its citizens, but as I mentioned before the higher cost of property tax in Texas could be due to the lack of the income tax. The building of roads and bridges to make transportation more efficient depends on the state funding, by collecting the fuel tax, toll fees, and other taxes. The gasoline tax charged by

A report on Value Added Tax

1399 words - 6 pages A report on Value Added Tax Introduction Value Added Tax originated in France in 1954 and is under implementation in more than hundred countries. Value Added Tax is perceived by many as means to promote neutrality and uniformity of tax burden and to provide incentives for increased productivity and industrialization. The spread of VAT to the developed and the developing countries alike certainly, makes for an interesting study

Similar Essays

Tax Incentives In The Film Industry

2250 words - 9 pages incredibly small amount for a feature film, Blomkamp and Jackson took advantage of local tax incentive programs, these programs lowered taxes on purchases and rentals. By doing this it gave Blomkamp more freedom to extend his budget. Recently, the United States has adopted tax incentives to encourage growth in the film industry however; there is controversy over whether or not these incentives are as effective as they appear. This raises the question

Proposed Options For Solving The Foreclosure Crisis Through Public Awareness And Tax Break Incentives

1040 words - 4 pages Foreclosures are a major problem, epically in today’s bad Housing Market, however with ever problem there come solutions. There is nothing we can’t fix. Fixing these problems with feasible solutions is what we must do. Currently the Obama administration is give tax break incentives from first time home buyers and its WORKING! The housing market has made a very remarkable recover from just one year ago, but as great as these tax break incentives

Special Tax Scheme In Denmark Essay

663 words - 3 pages employer requesting the scheme. In addition, employees was not allow to add other sources of income /earnings to make them qualify for the special tax scheme. The threshold of eligibility must also be met on an annualized basis. Incentives such as house allowance and free cars are included in earning eligible for the special tax scheme and taxed at the flat rate. Other income that does not included in earning eligible will be taxed at the regular tax

Double Taxation Essay

1712 words - 7 pages damage growth and to attract foreign investors. According to these objectives, the standard tax rate has been reduced from 43 percent in 1991 to 16 percent in 2002, with the objective of a further reduction to 12.5 percent in 2003 (Bernadi, 2003, p 173). Many countries generally adopt tax-credit system for tax revenues but offered many attractive tax incentives for relief international double taxation. The rationale behind this is that, a