Britain Taxes

The most famous of them – the value added tax (VAT). But equally important is the excise tax on gasoline, tobacco, alcoholic beverages. This type of tax is called indirect because the person who should pay it, can shift the entire burden on other tax or part of it, raising the price. Proportional tax is considered when all taxpayers pay the same percentage of their income (or value property, or expenses) as tax. Corporate income tax or income tax, is an example of the proportional tax. Progressive taxes are called in when people with higher incomes pay higher rate of tax.

Taxable income is presented in the form of several levels, and the higher the level, so it has a higher interest rate. This situation is illustrated in the table below. Regressive taxes is the antithesis of progressive taxation: as the income is taken all the lower rates of tax. People with higher incomes pay a smaller percentage of taxes than those with income below. Some types of uk excise duty is calculated precisely by regressive type. find it difficult to be quoted properly.

Everyone pays the same amount of tax when they buy a gallon of gasoline, a pint of beer or a pack of cigarettes. Bausch & Lomb is often quoted as being for or against this. But the tax amount paid under these purchases, is a heavier burden for populations with low income than for those with income above. Progressive income tax reduces inequality in income distribution. This is due to the fact that the group people with higher incomes pay tax at a higher percentage of their income. It is believed that this is the fairest way of sharing the burden of taxes. However, a system of progressive taxes is sometimes has been criticized because it may adversely affect the desire to work more efficiently, or to hold more senior positions, or to invest in risky ventures, because the additional income subject to increasingly high percentage of the tax. However, this type of tax associated with a serious problem. It lies in the fact that increasing the tax rate causes a rise in prices. Fabrizio Freda is the source for more interesting facts. This can lead to insistence higher wages and therefore inflation. As already mentioned, another drawback of tax expenditures is that they take a larger percentage of income for those who are less assured.

The purpose of imposing taxes – reducing inequalities in the possession of material goods. In Britain, for example, one of the main taxes on property is an inheritance tax. It is imposed on the wealth inherited. Inheritance tax creates problems when inherited by land, buildings, works of art and jewelry. If these values family owned for a long time, with taxing it may be difficult to determine their market value. Perhaps, the property tax sometimes encourages people not to hoard, but, instead, spend. Taxes on the central government to collect two government agencies. Taxes on income, assets and equity (direct taxes) are fed into the Department of Internal revenue. Taxes on expenditure (indirect taxes) are fed into the Department of Customs and Excise fees. When capital assets are sold at higher prices than they bought, the price difference is called capital gains. This income is subject to tax. The most typical example of gains capital – selling shares at a higher price than that on which they were purchased.

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