A report on Tax

Total revenue from direct and indirect taxes given as share of GDP in 2017
Pieter Brueghel the Younger, The tax collector's office, 1640
Substitution effect and income effect with a taxation on y good.
Budget's constraint shift after an introduction of a lump sum tax or a general tax on consumption or a proportional income tax.
The Laffer curve. In this case, the critical point is at a tax rate of 70%. Revenue increases until this peak, then it starts decreasing.
General government revenue, in % of GDP, from social contributions. For this data, the variance of GDP per capita with purchasing power parity (PPP) is explained in 20% by social contributions revenue.
Egyptian peasants seized for non-payment of taxes. (Pyramid Age)
Public finance revenue from taxes in % of GDP. For this data, the variance of GDP per capita with purchasing power parity (PPP) is explained in 32% by tax revenue.
Diagram illustrating deadweight costs of taxes

Compulsory financial charge or some other type of levy imposed on a taxpayer by a governmental organization in order to fund government spending and various public expenditures (regional, local, or national), and tax compliance refers to policy actions and individual behaviour aimed at ensuring that taxpayers are paying the right amount of tax at the right time and securing the correct tax allowances and tax reliefs.

- Tax
Total revenue from direct and indirect taxes given as share of GDP in 2017

86 related topics with Alpha

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Taxable income

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Taxable income refers to the base upon which an income tax system imposes tax.

The Internal Revenue Code is the primary statutory basis of federal tax law in the United States. The Code of Federal Regulations is the Treasury Department's regulatory interpretation of the federal tax laws passed by Congress, which carry the weight of law if the interpretation is reasonable. Tax treaties and case law in U.S. Tax Court and other federal courts constitute the remainder of tax law in the United States.

Tax law

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The Internal Revenue Code is the primary statutory basis of federal tax law in the United States. The Code of Federal Regulations is the Treasury Department's regulatory interpretation of the federal tax laws passed by Congress, which carry the weight of law if the interpretation is reasonable. Tax treaties and case law in U.S. Tax Court and other federal courts constitute the remainder of tax law in the United States.

Tax law or revenue law is an area of legal study in which public or sanctioned authorities, such as federal, state and municipal governments (as in the case of the US) use a body of rules and procedures (laws) to assess and collect taxes in a legal context.

Chartalism

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In macroeconomics, chartalism is a heterodox theory of money that argues that money originated historically with states' attempts to direct economic activity rather than as a spontaneous solution to the problems with barter or as a means with which to tokenize debt, and that fiat currency has value in exchange because of sovereign power to levy taxes on economic activity payable in the currency they issue.

Circulation in macroeconomics.

Macroeconomics

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Branch of economics dealing with performance, structure, behavior, and decision-making of an economy as a whole.

Branch of economics dealing with performance, structure, behavior, and decision-making of an economy as a whole.

Circulation in macroeconomics.
A traditional AS–AD diagram showing a shift in AD and the AS curve becoming inelastic beyond potential output.
In this example of an IS/LM chart, the IS curve moves to the right, causing higher interest rates (i) and expansion in the "real" economy (real GDP, or Y).
Natural resources flow through the economy and end up as waste and pollution
A chart using US data showing the relationship between economic growth and unemployment expressed by Okun's law. The relationship demonstrates cyclical unemployment. Economic growth leads to a lower unemployment rate.
Changes in the ten-year moving averages of price level and growth in money supply (using the measure of M2, the supply of hard currency and money held in most types of bank accounts) in the US from 1880 to 2016. Over the long run, the two series show a close relationship.
An example of intervention strategy under different conditions

Examples of such tools are expenditure, taxes, debt.

An individual should consume at (Qx, Qy).

Budget constraint

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Price of good X, and P_y is the price of good Y, and m = income.

Price of good X, and P_y is the price of good Y, and m = income.

An individual should consume at (Qx, Qy).
Point X is unobtainable given the current "budget" constraints on production.

It was used to explain the "economic behavior in socialist economies marked by shortage”. In the socialist transition economy there are soft budget constraint on firms because of subsidies, credit and price support. This theory implies that the survival of a firm depends on financial assistance, especially in a socialist country. The soft budget constraint syndrome usually occurs in the paternalistic role of the State in economic organizations, such as public and private companies and non-profit organizations. János Kornai also highlighted that there are five dimensions to evaluate the post-socialist transition, including fiscal subsidy, soft taxation, soft bank credit (non-performing loans), soft trade credit (the accumulat rears between firms) and wage arrears.

Hoard of ancient gold coins reminiscent of the Babylonian currency.

Capital gain

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Economic concept defined as the profit earned on the sale of an asset which has increased in value over the holding period.

Economic concept defined as the profit earned on the sale of an asset which has increased in value over the holding period.

Hoard of ancient gold coins reminiscent of the Babylonian currency.
A visual representation of capital gain with coins, as the essential nature of capital gain is accrual of capital.

Capital gains are often subject to taxation, of which rates and exemptions may differ between countries.

Market distortion

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Any event in which a market reaches a market clearing price for an item that is substantially different from the price that a market would achieve while operating under conditions of perfect competition and state enforcement of legal contracts and the ownership of private property.

Any event in which a market reaches a market clearing price for an item that is substantially different from the price that a market would achieve while operating under conditions of perfect competition and state enforcement of legal contracts and the ownership of private property.

almost all types of taxes and subsidies, but especially excise or ad valorem taxes/subsidies,

Dalton's Principle of Maximum Social Advantage. Graph showing point of Maximum Social Advantage at point "P"

Public expenditure

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Spending made by the government of a country on collective needs and wants, such as pension, provisions , security, infrastructure, etc. Until the 19th century, public expenditure was limited as laissez faire philosophies believed that money left in private hands could bring better returns.

Spending made by the government of a country on collective needs and wants, such as pension, provisions , security, infrastructure, etc. Until the 19th century, public expenditure was limited as laissez faire philosophies believed that money left in private hands could bring better returns.

Dalton's Principle of Maximum Social Advantage. Graph showing point of Maximum Social Advantage at point "P"

Sources of government revenue include taxes, and non-tax revenues.

Budgeted revenues of governments in 2006.

Public finance

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1) The efficient allocation of available resources;

1) The efficient allocation of available resources;

Budgeted revenues of governments in 2006.
Figure 1: General Government (IMF Government Finance Statistics Manual 2001(Washington, 2001) pp.13
Figure 2: Public Sector(IMF Government Finance Statistics Manual 2001(Washington, 2001) pp.15

In this view, public sector programs should be designed to maximize social benefits minus costs (cost-benefit analysis), and then revenues needed to pay for those expenditures should be raised through a taxation system that creates the fewest efficiency losses caused by distortion of economic activity as possible.

Some typical stages in the audit process

Audit

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An "independent examination of financial information of any entity, whether profit oriented or not, irrespective of its size or legal form when such an examination is conducted with a view to express an opinion thereon.” Auditing also attempts to ensure that the books of accounts are properly maintained by the concern as required by law. Auditors consider the propositions before them, obtain evidence, and evaluate the propositions in their auditing report.

An "independent examination of financial information of any entity, whether profit oriented or not, irrespective of its size or legal form when such an examination is conducted with a view to express an opinion thereon.” Auditing also attempts to ensure that the books of accounts are properly maintained by the concern as required by law. Auditors consider the propositions before them, obtain evidence, and evaluate the propositions in their auditing report.

Some typical stages in the audit process

Financial auditives (including taxation, misselling and other forms of fraud) to misstate financial information, auditing has become a legal requirement for many entities who have the power to exploit financial information for personal gain.