TAX AS A MEANS OF CONTROL AND STIMULATOR OF THE ECONOMY
Chapter1: Introduction 3
Chapter 2: Literature review 5
2.1: Equity of tax on society 5
2.2: Fluctuating tax rates to control and stabilize the economy 6
2.3: Tax rates adjusted and used to promote growth 8
2.4: Effects of green tax policy 9
Chapter 3: Research Methodology: 11
Chapter 4: Analysis of findings 14
Chapter 5: Conclusion and recommendations 18
The general definition of tax is a financial charge or levy imposed by the government of a state to the taxpayers of the state. Almost everything changes over time, but the system of collecting tax has been unchanged for hundreds of years. From the tax history of England in medieval times, the peasants had to pay tax which was 10% of the value of what they had farmed.
This indicates that this concept of tax is historical and the collectors of tax have been using this system to control the economy of citizens as well as the country they ruled. In more recent time, the government impose tax to those citizens only who are required to pay tax by law. Unlike past times when tax was charged on the goods that the peasants used to cultivate, now it is only charged financially and direct taxes are charged to only those people who have certain limits of income. For this reason some people find tax to be fair and others object it as unfair.
This paper carries a research regarding the equity or fairness of tax and its controlling power and stimulating effect on the economy. The research focuses on certain aspects of UK taxation and clearly illustrates how tax could ideally be used by the government...