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Added on  2020-10-23

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PRINCIPLES OF TAXATION

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TAX SYSTEMS .............................................................................................................................1Progressive tax systems with examples......................................................................................1Regressive tax systems with examples.......................................................................................1Comparison in two systems with opinion on better and fairer system.......................................2SOURCES OF TAX LAWS............................................................................................................3Discussing different sources of tax law In UK...........................................................................3TAX AVOIDANCE VERSUS TAX EVASION............................................................................5Differentiating among tax avoidance and evasion with implications of both on individual andon government.............................................................................................................................5CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................8

INTRODUCTIONTax is replicates as compulsory payment made through individuals and companies togovernment with context to well established rules along with criteria like property owned,income earned, capital gains made or expenditure incurred on imported and domestic articles.The present report will provide discussion about progressive and regressive tax system withappropriate examples. Similarly, this would give comparison of these tax systems and discussionof different sources of tax law in UK. Lastly, this report will differentiate among tax avoidanceand tax evasion with reference to implication of both on individual and on government as well.TAX SYSTEMSProgressive tax systems with examplesProgressive tax is a tax rate which is taxable as value raises as this is segmented into taxbrackets which progress to successively with higher rates. This is a tax which impose lower taxrate on earners of low income compared with higher income on basis of ability of taxpayer topay. It means for undertaking larger percentage through high income earners than it does fromindividuals of low income (Bird and Davis-Nozemack, 2018). This is the one which charges ofhigh tax rate for one who earns high income. The main reason behind this that lower incomewould spend a great percentage of their lower income for maintaining standard of living.Simultaneously, who are richer typically afford the necessities in life. This system decreases thetax burdens on people who could least afford for repay and these systems leave more money inpockets of low-wage earners who spend money and stimulate the economy. This tax systems hascapability for collecting more taxes comparatively to flat taxes and tax rates indexed forincrement as income climb. In simple words, it allows people with great amount of resources tofund a high portion of services as everyone relies to people and business .The example of progressive tax are stated as investment income taxes which are most ofthe activities which generate income and it reduces through excess money for involving andsaving in investment. Similarly, estate tax is form of tax levied against whom succeed a deceasedas this only applies when estate of deceased is above a specific amount as set throughgovernment.Regressive tax systems with examplesTaxes are regressive when it impose harsh burden on poor compared to rich. On basis ofpoor families, high proportion of their income pays for food, transportation and shelter. This tax1

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