What Kind of Tax Based System is Currently on the Process?

The tax base of income taxation consists roughly of income from work, social benefits and capital income. They are the result of many different economic choices. For example, training, participation in work and hours worked affect the amount of labor income and the choices about consumption and saving capital income. In principle, income tax is levied on all income. Therefore, it can have a wide range of behavioral effects that need to be taken into account.in the design of the tax structure.

Let’s look at this with an example

When a person is considering a decision on working hours for more information, the key option is to spend hours on leisure activities. Because leisure time is practically not taxable, taxation inevitably distorts a person job offer decision. Therefore, neutral taxation cannot be a meaningful goal florin income tax planning. The situation is different when choosing a savings destination.

There is also a specific objective related to income taxation, the income redistribution task

This implemented through a deduction system and a progressive tax scale. Income tax-because it is a personal, direct tax. Tax detailed information on the person’s financial and economic situation may be used other circumstances. For example, fuel tax and VAT are suitable for this clearly worse because the tax is paid by the manufacturer or seller of the commodity. Ku-the consumer pays the tax indirectly at the price of his consumption.

• The aim of this chapter is to provide an overview of the effects of income taxation on different economic decisions. It also considers how income the tax base and tax scales of the race should be designed taking into account behavioral effects. We first look at the effects of income tax and income transfers on household and how this can be exploited in the structure of income taxing design. Next, we discuss the taxation of capital income and finally the issues related to the taxation of income from employment. So you will not have to ask How to calculate business tax

For the Healthy Lifestyles

Encouraging healthy lifestyles through financial instruments such as taxation has been found to be difficult in practice. Excise duty does not seem to work expectations, as changes in the health status of the population are typically in the long term. It is difficult to prove the effects of the tax. Even if unhealthy eating habits could be affected, it is not possible to what the consumer chooses to replace the nutrient he has reduced. Consumption may with the tax, switch to products with similar but cheaper nutritional content or sugar-containing products are replaced by other products considered unhealthy.

Conclusion

In others in some cases, the need for taxation is more difficult to justify on the basis of externalities. For example, if a person eats too many unhealthy foods and gain weight oars a result, the negative effects of harmful consumption still fit only into him. In this case, the health tax is based on paternalism that is, a patronizing view of the lack of consumer self-control that leads harmful choices and health problems. Problems, in turn, cause significant social costs. However, this view differs the general perception of economics that it is the consumer’s own choice financially most sustainable and no public power on this basis should guide him their decisions.