7 pages/≈1925 words
Mathematics & Economics
Institutional Affiliation (Essay Sample)
Choose any one of the following topics and follow the guidelines as given. 1. Why do governments intervene in the agricultural sector? Choose any particular agricultural commodity in Canada and discuss the type of government intervention it is subjected to. Evaluate the consequences of such intervention. 2. Is there a future for the Automotive sector in Canada? In your opinion what are the factors on which the future of this industry depend? Elaborate. 3. The impact of sales tax on the consumer depends on the elasticity of demand and supply. State three products in Canada that are subjected to sales tax. Who bears the burden of these taxes? Why? If necessary illustrate with diagrams. 4. Choose any one of the following market structures: a) Perfect Competition b) Monopoly c) Oligopoly Choose an industry in Canada which falls within the category you have chosen. Analyse the characteristics of the industry within the framework of the text book . Discuss its potential for Economic or normal profits source..
Tax, is a fee levied by an authority of a particular place, to the inhabitants of that geographical region. Tax is normally settled in monetary terms, though in some circumstances, it may be settled in terms of labour, paid labour. It is worth noting that taxes are not paid by volition of the people or corporations in which it has been imposed, but rather, it is a mandatory financial burden, such that failure to pay is a criminal offence, punishable by law.
Taxes are usually expressed as a percentage, and this percentage charged is referred to as the tax rate. This percentage may be charged on the personal income of an individual, the income of a corporation, goods imported, goods sold to final consumers, manufactured goods, in roads (toll stations), and in many other forms and places. This rate will vary with varying administrators of the tax. Two expressions used when talking about tax rate are, the effective rate, and the marginal rate. The effective rate is the fraction of the total amount of the tax paid, to the total amount that the tax rate is applied. The marginal rate, is the tax rate that is paid on the additional one unit of the currency being used, say the dollar.
Purpose of taxation
Governments will impose taxes because of various purposes; to raise money to meet its budget, to finance wars in which the government is involved in, to try and discourage some trends or externalities, for example, cigarette tax is imposed to discourage smoking while carbon tax is imposed to discourage pollution of the environment. Some taxes are imposed to protect domestic industries from competition, and this practice is most common in less developed and developing economies. The money raised from taxation may be used for development projects in the country, as well as settling of the external debt, also in the funding of the welfare of the society, and recreational facilities. The purpose of taxation can therefore be classified in four main categories; revenue, where taxes are imposed to raise money for the government, redistribution, where the government attempts to transfer wealth from the haves, to the have-nots, in the society. Reprising, which is done to try and discourage externalities, and representation, which is historically, more of a bargain between rulers and subjects, where rulers tax the subjects, and the rulers have in turn, to be accountable to the subjects.
Types of taxes
There are two broad classifications of taxes: tax may be direct, or indirect. Direct taxes target the individual traits of the tax payer, an example is the income tax. Indirect taxes are imposed as wholesome and do not target the individual characteristics of the tax payer. The following are some common kinds of taxes;
This is levied on corporations and on the income of individuals. On corporations, it will be levied on the net profits, gross profits, or other income of the corporation, and is usually affected by accounting principles. Some corporations however do not pay taxes. On personal income, income tax is charged on the gross income of the individual, as well as other incomes the individual may raise. It is paid at the conclusion of the year, or financial year for the case of corporations. Some individuals may overpay, and thus may be a refunded by the government, at the end of the year.
There are many other taxes imposed on various sources of income for different groups and corporations; social security contributions, capital gains tax, taxes on property, tax on payroll, inheritance tax, expatriations tax, transfer tax and wealth tax. There are also taxes on goods and services, and this include value added tax (VAT ), and sales tax.
Value added tax (VAT )
This is one form of taxes on goods and services....
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