Friday, November 27, 2020
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Taxation and Paying Capacity of People

Taxation and Paying Capacity of People

This tax is required to pay legal entities and entrepreneurs. In other words, the owners of all stores, buying products at the initial price. They sell it already more expensive and based on the fundamental difference; the final price comes with VAT. But we can say that in essence, we pay it, consumers. “As part of the increase in the VAT rate, consumption will decrease. Most of all, a tax increase will affect the non-resource sector of the economy: retail, engineering, electricity, construction. Increasing tax will primarily affect small and medium enterprises rather than large ones” (Frischmann, Shevlin, & Wilson, 2008).Consider how this will affect the business. The increasing tax problem of the USA is more likely reduced to structural constraints in the economy. It is a change in the style of government that is necessary, including by reducing the burden of all kinds of inspections and reducing the corruption component. These measures would allow the economy to begin to grow. Changes in these areas would avoid tax increases.

But, on the other hand, if the state does not raise domestic taxes, the government will finance the reform with revenues from the oil and gas complex. It will especially happen during a period of rapid growth in raw material prices. Thus, the successful implementation of the “May Decree” of the President will be tied entirely to the commodity market.

Rising oil prices entail an increase in tax payments. From 2017, a significant part of the money is sent by the Ministry of Finance to reserve funds. When the barrel oil cost exceeds than all funds raised above this amount are saved for the future, to resolve crises. It means that at present, this money is being withdrawn from the economy, financing of investment programs at their expense not provided.

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