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    taxation policy

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    Provide an example of a tax and discuss how it affects efficiency and equity.

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    The main objectives of the taxation policy are:
    ? Mobilization of resources
    ? Acceleration of the economic growth
    ? To minimize the inequalities of Income and Wealth.
    Hence the main objectives for which taxes are levied is to raise revenue by transferring resources from the public to government and the opposite applies when the government cut the taxes so that some resources are transferred from the government to public. It will depend on the tax system that how much it has impact on the economy.
    The characteristics of good tax system ...

    Solution Summary

    The main objectives of the taxation policy are summarized.