Saturday, November 15, 2014

Simplifying Taxation



Simplifying Taxation
While in many ways modern humans have progressed, there are some things that have become horribly complex in modern times. One of these is the taxation systems that exist in various countries of the world. Humans appear to have literally tied themselves up in knots when it comes to taxes, tax collections and regulations that are like fat books full of much unnecessary gibberish in very many countries of the world. It goes without saying that such systems not only lead to harassment of citizens but also high costs of maintaining these systems and poor tax collections. The fact is that in the modern world far simpler ways to collect taxes are available and any country would do well to discard much of its revenue and tax services along with many regulations and replace it with two or three simple types of taxes. Three that may be mentioned are

  1. GST
  2. Bank Transaction Tax
  3. A Corporate tax on corporate profits

With that will end the pain of filing annual returns (except for corporations) and the huge infrastructure required to maintain existing systems. An enlightened form of corporate taxation that encourages small businesses to grow and prevents large ones from becoming too big for good is described in an earlier post here:
http://someitemshave.blogspot.in/2014/06/rule-of-ninety-step-towards-reducing.html

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