TAX PRINCIPLES AND ANALYSIS

1 .Property Taxes (assessed at a rate of 3 on the value of the property Income Value of House Property

Taxes

7 .5 Type of tax : Proportional

2 . Sales Taxes (assessed at the rate of 8 on the value of taxable consumption

Income Taxable

6 .4 Type of tax : Progressive

3 . Income Taxes

Income Income

7 Type of tax : Progressive

4 . Gasoline Taxes (assessed at the rate of 22 cents per gallon

0 .33 Type of tax : Regressive

5 . Lottery Tickets

0 .3 Type of tax

: Regressive

Types of Taxes

Progressive : represents a greater portion of individual income as it rises

Regressive : represents a small portion of individual income as it rises

Proportional : fixed percentage of income is paid and tax rates remain same

E .g . Ad valorem is imposed at the time of sale of goods in the form of VAT and this is under direct tax , sale of property also invites payment of indirect tax whereas owning the property invites payment of tax under direct tax rules

Taxes are considered as a burden for public whereas for Government evasion of payment of taxes causes loss of revenue . Reasonable and low rates of tax would prove benefit to the government and public are not charged heavily from incomes . Existing 15 types of taxes are sufficient for the government and do not require any introduction of new taxes in the present times . viz , wealth tax , retirement tax , capital gain tax poll tax , property tax , consumption tax , corporation tax , References

VAT Theories - Progressive or Regressive - Who pays what

Accessed 22 June 2007

HYPERLINK "http /www .bized .co .uk /virtual /economy /policy /tools /vat /vatth2 .htm http /www .bized .co .uk /virtual /economy /policy /tools /vat /vatth2 .htm...