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

Why do we wishing assesses?Taxation makes up majority of our governments income. With this income the government can provide us with proper infrastructure and social services for little, if no cost at completely. These include Medic ar, social security and education. (These facilities are known as perennial expenditures because it is needed time after time.) Other expenditures include transportation, lighting, recreation etc. These services are granted to us at no costs. In many a(prenominal) 3rd world countries where taxation is low or doesnt exist, all of these services are to come out of ones own pocket. Over the many centuries, in which taxation was existent, tidy sum have cheated and avoided paying these taxes. Nowadays the great unwashed with high-income put their money into trusts, superannuation, or incorporate it into businesses. Businesses would try and receive more than than cash transactions. This has led to a decrease in our governments revenues, thus jumper l ead to a tax reform in hope of a more strong result. What makes a good tax constitution?There are four elements in a successful tax system. They are effectiveness, efficiency, equitability, and simplicity. 1) speciality is the performance compared to the desired effect. E.g. the number of people who pays tax, how much tax is received.2) skill is the cost of running the system. The system may be very effective with a million tax officers, but it would cost millions to hire so many people. 3) Equitability is the fairness of the system. This is an unattainable goal to achieve. From different peoples point of views, the system will always 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 fair. 4) Simplicity A tax system should never be too complexed, it is otherwise not efficient neither understandable. The income tax Act that just started off at just 120 pages in 1936 is now over 3300 p ages and has doubled in size over the closing curtain 7 years. A complex system means that those who can open up 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 equitable or simple. It is impossible to fit the whole universe all under one roof. Under these circumstances the government proposed a new way of taxation- GST.