Harvey Mudd College Type of paper: Essay This essay has been submitted by a student.
Tax reform and tax theory Tax reform and Tax Theory. Tax reform, especially in developing countries, is one of the most intensely debated topics around the world. The significance of this issue can be easily understood as developing economies, lacking strong fiscal traditions, have emerged as important participants in a renovated world.
Old paradigms are being constantly challenged by these new players. At the same time, the resources necessary to meet the growing demands placed on their public sector make tax reform a crucial issue in their effort to maintain the tendency towards economic relevance which many developing countries have been Tax reform essay attempting to achieve.
In Brazil, particularly, tax reform it is one of the most important items in a list of pressing domestic issues. A new tax perspective Over the past fifteen years, debate on the Brazilian tax system has been greatly intensified.
But on the other hand, the debate has been very rich, and has resulted in the development of new insights on this problem.
Several propositions for tax reform have been introduced, creating a clear division of opinions between two schools of thought on the subject. On one side, stands orthodoxy, based on traditional concepts of public Tax reform essay and on conventional canons of tax law.
Although many of these conventional concepts on taxation have been superseded by the effects of recent technological advances -most importantly, electronic information and new means of asset transfers- they have been the main driving force observed in the tax reform proposals sponsored by the Brazilian government.
On the other side of the divide is the innovative and anti-dogmatic school of thought which proposes the elimination of conventional tax models and which is epitomized by the resurgence of the age-old concept of the Single Tax, which, in its modern version makes extensive use of non-declaratory taxes such as the bank transaction tax, and introduces electronic technology into the tax world, not as a simple mechanical improvement in gathering and auditing of data, but rather, as a conceptual building block in alternative methods and constructs about taxation and public finance.
Conventional taxes, in current use throughout the world, make extensive use, by the taxpayer, of self-prepared filing of paper tax-returns based on tax accounting procedures set up by tax authorities. The non-conventional, non-declaratory taxes make no use of paper tax filings, and are usually collected automatically, administratively, by electronic means, such as the bank transaction tax used in Brazil from to This school mistakenly sustains so claim such conservative reformers the continuation of paradigms which, inadvertently to them, have become outdated, and which have been superseded by the peculiar impacts of modern economies, characterized by globalization and by the overwhelming effects of the digital information age.
Ultimately, because of its extensive pattern of incidence upon almost all economic transactions and therefore reaching almost all economic occurrences presently used as tax bases, this type of taxation could lead to the construction of a model with a single basic tax, an envelope tax, or the Single Tax paradigm.
Paradigm change Thomas Kuhn says that a field of study becomes a science when a community of experts consensually accepts a paradigm - that is, a set of problems and uniform standards of approach - with a foundational theory and a common set of explanatory and interpretative traditions.
This consensus, for its part, does not depend on whether the scientific propositions provide an indisputable vision of the intimate configuration of reality. It does, however, depend on whether its development has been guided by demarcation criteria that are authoritatively prevalent in the environs of that community.
If each paradigm sets forth the conditions of the scientific nature of the knowledge produced in its environs, the proofs invoked in favor of other paradigms tend to be disqualified a priori. Partly for these reasons, traditionalists say that the extensive use of a bank transactions tax as the basic pillar for a tax reform is an audacious proposition, bordering on illusion.
The guardians of orthodoxy, the bureaucratic establishment, and the recurrent tax evaders refuse to relinquish their decades-old professional and intellectual investments - despite the fact that all evidence proves them increasingly obsolete.
A bank transaction tax has countless advantages as a taxation system. Auditing becomes simpler; taxation criteria are more transparent; bureaucratic and compliance costs both to the public and to the private sectors are lessened.
For example, Brazil has a banking system that is significantly more modern than that of most of the advanced economies, including the United States, and this is the foundation that supports the paradigm shift towards the bank transactions concept.
Furthermore, such an attitude ignores that there are cultural, social, political, and economic differences among countries that make some urgently need a new tax system, while others do not, as least not with the same intensity. Regarding tax systems, it becomes increasingly evident that the conventional paradigm is gradually becoming exhausted.
Music, Film, TV and Political News Coverage. The Business Tax Reform and its consequences INTRODUCTION The failure of previous reforms of the Business Tax. Business tax was one of four main direct taxes with the local Land Tax on properties and undeveloped, and the Housing Tax. The fair tax rate is a tax reform proposal that would replace all federal income taxes, payroll taxes, gift taxes, and estate taxes with a single consumption tax on retail sales. We currently have tax tables that differ depending on .
An illustrative example is found in the changing perception of tax administrators regarding the Income Tax. After the Second World War the global income tax became almost universally used. Nevertheless, perceptions about this form of taxation are gradually changing because of new circumstances present in the world, but also because of some characteristics of the income tax which were persistently ignored by policy makers.
Few academic articles, if any, dealt with these potential disincentives. Indeed, what we see is the erosion of traditional mechanisms of tax collection. Two decisive turning points:A NewSchools Venture Fund study confirmed a widespread aversion to takeover-and-turnaround strategies among successful school operators.
Only 4 of 36 organizations interviewed expressed interest in restructuring existing schools. While most current tax proposals are clearly motivated by a desire to make the U.S.
tax code less progressive (or more regressive), this essay will generally concentrate on the technical and political aspects of various approaches to taxation. Tax reform, especially in developing countries, is one of the most intensely debated topics around the world. The fair tax rate is a tax reform proposal that would replace all federal income taxes, payroll taxes, gift taxes, and estate taxes with a single consumption tax on retail sales.
We currently have tax tables that differ depending on . The Business Tax Reform and its consequences INTRODUCTION The failure of previous reforms of the Business Tax.
Business tax was one of four main direct taxes with the local Land Tax on properties and undeveloped, and the Housing Tax. Calculate your federal, state and local taxes with our free income tax calculator.
We use your income & location to estimate your total tax burden. Also calculate how your taxes will change under the Trump tax .